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 FINAL REPORT 
 
 OF 
 
 UNITED STATES 
 LIQUIDATION COMMISSION 
 
 WAR DEPARTMENT 
 
 UC-NRLF 
 
 IN B. PARKER. Chairman 
 
 WASHINGTON 
 
 GOVERNMENT PRINTING OFFICE 
 
 1920 
 
FINAL REPORT 
 
 OF 
 
 UNITED STATES 
 LIQUIDATION COMMISSION 
 
 WAR DEPARTMENT 
 
 BY 
 
 EDWIN B. PARKER, Chairman 
 
 WASHINGTON 
 
 GOVERNMENT PRINTING OFFICE 
 
 1920 
 

CONTENTS. 
 
 A. FINAL REPORT. 
 
 Page. 
 
 I. Sales 5 
 
 II. Settlements 6 
 
 B. BRIEF REVIEW. 
 
 I. Organization and functions 11 
 
 II. Sales 16 
 
 Sales to the Republic of France 16 
 
 Sales for " Liberated Nations " 28 
 
 Gift to Red Cross 30 
 
 Commercial sales of property located in France 31 
 
 Belgian sales and general settlement 35 
 
 Sales in Germany 34 
 
 Sales in England 38- 
 
 Smnmary of sales 40' 
 
 III. Settlements of claims 41 
 
 Settlements with Great Britain 42 
 
 British artillery and ammunition settlement 43- 
 
 Australian wool settlement 45 
 
 The Cuthell settlement 47 
 
 Settlement of tank agreements 48 
 
 British Liberty motor settlement 52 
 
 British interest claim 52 
 
 Liquidation of nitrate pool 54 
 
 Bills, accounts, and claims pending in Great Britain 56 
 
 Excess costs claim 56 
 
 Overhead expense claim 59 
 
 Supplemental claim for railway transportation 59 
 
 Contract claims of nationals 60 
 
 Settlements with France 61 
 
 French artillery and ammunition settlement 61 
 
 French aircraft settlement 63 
 
 Liberty motor settlement 65 
 
 French transportation settlement 66 
 
 French port dues settlement 70 
 
 General settlement with the French Government 72 
 
 Indemnification of America by France against all claims of 
 nationals for torts, workmen's compensation, rents, requi- 
 sitions, and damages 74 
 
 Summary 78 
 
 General settlement with Belgium 79 
 
 General settlement with Italy 79 
 
 Negotiations for settlement with Luxembourg 81 
 
 IV. Conclusion 82: 
 
 ivi65345 3 
 
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FINAL REPORT OF THE UNITED STATES LIQUIDATION COMMISSION- 
 WAR DEPARTMENT. 
 
 To the honorable the Secretary of War : ' '•>">'-' ^.^ :\t <', r*\ 
 
 The United States Liquidation Commission — War Department 
 was created February 11, 1919, "as the central agency" (1) to dis- 
 pose of America's surplus war stocks in Europe, and (2) to settle 
 all claims and accounts betAveen Allied Governments and their 
 nationals on the one part and the United States War Department on 
 the other part, growing out of or in anywise connected with the war. 
 
 The duties and responsibilities of the Commission have fallen 
 naturally into two general divisions: (1) Sales and (2) settle- 
 ments of accounts and claims. 
 
 Sales. — The stocks, the disposition of which constituted a part 
 of the Commission's task, were located chiefly in France, but some of 
 them were in Great Britain, some in Germany, Holland, Belgium, 
 Spain, Portugal, and Italy. Out of them more than 2,000,000 men 
 were fed, supplied, and equipped pending their return to America at 
 the rate of approximately 250,000 men per month until the return 
 transportation was completed the latter part of 1919. Supplies and 
 equipment of the estimated value of $672,000,000 were returned to 
 the United States. The balance was sold in Europe for $822,- 
 923,225.82. 
 
 Sales of approximately $108,700,000 were made for cash on de- 
 livery ; sales of approximately $532,500,000 were made to the French 
 Government; sales amounting to about $29,000,000 were made to 
 Belgium; and sales aggregating $140,100,000 Avere made to Poland, 
 Czechoslovakia, Serbia, Roumania, and other so-called liberated 
 nations of Central Europe and the Near East. Those made to the 
 nations mentioned are evidenced by their 5 per cent interest-bearing 
 bonds maturing from 2 to 10 years after date. Other sales were 
 made on short-term credits, which have been or are being collected by 
 the appropriate Army services. 
 
 The most important sale consummated was what is known as the 
 " Bulk sale to France " of surplus war stocks remaining unsold in 
 France on August 1, 1919; the considerations moving from France 
 
 5 
 
6 UNITED STATES LIQUIDATION COMMISSION. 
 
 being (a) $400,000,000 in 10-year 5 per cent bonds; (h) the assump- 
 tion by France of all rents for installations accruing after August 1, 
 1919, and the agreement of France to hold America harmless against 
 all claims (numbering approximately 150,000) of every nature what- 
 soever arising out of American occupation and use of such installa- 
 tions and lands; and (c) the waiver by France of all claims whatso- 
 ever (conservatively estimated at $150,000,000) for taxes or customs 
 duties on properties imported into France and sold since April 6, 
 1917. ^^^1/ 
 
 Eight hundred and. eighty-one thousand nine hundred and nine 
 animals were sold for $35,133,065.02. 
 
 Pursuant to an act of Congress passed in July, 1919, the Secretary 
 of War, acting through the Commission, delivered to the American 
 Ked Cross, without cost to it, medical, surgical, and hospital sup- 
 plies and equipment, and dietary foodstuffs of the value of 
 $9,964,851.16. 
 
 Settlements. — The settlement of the mutual claims between the 
 United States War Department and the nations associated with us in 
 the war have for the most part taken the form of a series of contracts 
 of adjustment. Wherever possible, controversies were composed, 
 mutual accounts stated, and a balance struck, so that by this set-off 
 process cash payments were reduced to a minimum. The principal 
 contracts of this nature may be briefly summarized as follows : 
 
 (1) A contract whereby France assumed all of our obligations to 
 the railroads of France, covering all services rendered from our 
 entry into the war to October 1, 1919, upon our agreement to pay 
 434,985,389.73 francs. This payment settles all bills for carrying and 
 re-carrying more than 2,000,000 men over the longest lines of com- 
 munication of any of the Allied Armies, including their travel on 
 leave; for carrying the American Army of Occupation over French 
 railroads to and from Germany ; and for transporting and handling 
 over 15,000,000 tons of freight.' 
 
 (2) A contract whereb}^ France assumed all obligations to local 
 chambers of commerce and other claimants for costs incurred in rais- 
 ing water levels for our use and benefit and for all charges for i^ort 
 dues for the entry of American vessels in French ports between 
 April 6, 1917, and the time of the complete evacuation of France by 
 American forces, upon our paying 3,000,000 francs. 
 
 (3) A contract whereby France assumed all claims of an}^ person, 
 organization, association, corporation, commune, or department of 
 France against America for damage to, use, or loss of property, or 
 injury to or death of persons, arising between April 6, 1917, and 
 December 81, 1919, upon the payment by America of 12,000,000 
 francs. 
 
UNITED STATES LIQUIDATION COMMISSION. 7 
 
 (4) A contract of general settlement with France, dated Novem- 
 ber 25, 1919, finally and for all time disposing of all claims and con- 
 troversies between France and the War Department of the United 
 States, by the terms of which France acknowledged an indebtedness 
 to America (in addition to the $400,000,000 evidenced by bulk sale 
 bonds) of $177,149,866.86, and America acknowledged an indebted- 
 ness to France (in addition to the amounts mentioned in the three 
 preceding paragraphs) of 1,488,619,027.52 francs. 
 
 (5) A contract of general settlement with Belgium, dated Novem- 
 ber 17, 1919, finally and for all time disposing of all claims and con- 
 troversies between Belgium and the AVar Department of the United 
 States, by the terms of which Belgium acknowledges a net balance 
 due the United States of $27,162,720.93, evidenced by three-year 5 
 per cent bonds. 
 
 (6) A contract of general settlement w^ith Italy, dated February 
 18, 1920, finally disposing of all claims between Italy and the War 
 Department of the United States, showing a net balance in favor of 
 Italy of the sum of 29,106,546.75 lire, which has been paid. 
 
 (7) Contracts with Great Britain, whereby (a) the United States 
 was relieved from the payment of all indemnity claims under con- 
 tracts for the purchase of artillery and ammunition in process of 
 manufacture, upon the purchase by and delivery to the United 
 States at cost of completed artillery units and ammunition equal to 
 such claims ; ( & ) the United States was relieved of a contract to take 
 delivery of 210,000 bales of Australian wool, at a cost of approxi- 
 mately $38,800,000, without the payment of any indemnity; (c) the 
 Anglo-American tank enterprise was liquidated, yielding the United 
 States 6,000,000 francs; (d) mutual interest claims were settled 
 covering a long period, resulting in the payment to Great Britain of 
 £797,854; and (e) the nitrate pool was liquidated. 
 
 ( 8 ) Numerous claims by nationals of France, Great Britain, Italy, 
 Spain and Switzerland, principally for indemnity growing out of the 
 cancellation of war contracts, have been considered and disposed of ; 
 446 claims which, expressed in dollars at the normal rate of ex- 
 change, totaled $17,427,175.41, were settled by the payment of $8,413,- 
 984.19; while 53 claims, aggregating in amount $739,894.91, were 
 rejected. 
 
 Some conception of the Commission's task can be formed from (a) 
 the statement of amounts involved in the settlements negotiated and 
 actually consummated by and under the direction of the Commission 
 of mutual accounts and claims between the United States War De- 
 partment on the one part and the Allied Governments and their 
 nationals on the other part (which settlements were where possible 
 
8 UNITED STATES LIQUIDATION COMMISSION. 
 
 consummated through set-offs without cash payments) and (h) the 
 amount of sales of property made by the Commission, as follows : 
 
 Amounts involved in settlements: 
 
 Settlements with France $748,392,004.82 
 
 Settlements with Great Britain 112,996,912.16 
 
 Settlements with Belgimu 2, 279, 827. 12 
 
 Settlements with Italy 12,620,173.75 
 
 Settlements with individuals, associations, and others 17, 427, 175. 41 
 
 Total amount involved in settlements S93, 716, 093. 26 
 
 Amounts of sales: 
 
 Bulk sale to France 400, <X)0, 000. 00 
 
 Other sales, stated in dollars 377,905,193.23 
 
 Other sales, stated in francs and converted 45,018,032.59 
 
 Total amount of all sales 822,923,225.82 
 
 The Commission was created February 11, 1919. The two re- 
 maining commissioners are herewith tendering their resignations on 
 this the 31st day of May, 1920. The total expenses incurred and 
 disbursements made by the Commission aggregate $222,883.17. 
 These expenditures are a trifle less than thirteen one-hundred-thou- 
 sandths (0.00013) of the amounts involved in settlements made and 
 sales negotiated by the Commission. 
 
 There is annexed to this report a brief review of the activities 
 of this Commission. There is also forwarded a bound volume of the 
 minutes of the daily meetings, comprising 470 closely typewritten 
 pages, with an index. The files of the Commission have been re- 
 viewed, indexed, and delivered to your representative. 
 
 The Commission desires to acknowledge the loyal and efficient 
 services rendered by the several members of its staff, without Avhicli 
 the performance of its tasks would have been impossible. It is 
 also the pleasure and privilege of this Commission to acknowl- 
 edge that in the performance of its tasks it has had the whole- 
 hearted and efficient support, assistance, and co-operation of the mili- 
 tary forces, particularly of Gen. John J. Pershing, commander-in-chief 
 of the American Expeditionary Forces; of Maj. Gen. J. G. Harbord, 
 commanding general of the Services of Supply, and later of his 
 successor, Brig. Gen. William D. Conner ; and the chiefs of all of the 
 services and the members of their respective staffs. AVhile the Com- 
 mission sometimes found itself handicapped and its work impeded 
 for want of complete and accurate records, the only wonder is that 
 the records were as nearly complete and accurate as we found them. 
 The whole heart and mind and effort of the American Expeditionary 
 Forces were bent on driving forward to Avin the Avar, not to make 
 paper records, and the ordinary rules of business and of commer- 
 cial usages did not and should not have obtained. For this and 
 
UNITED STATES LIQUIDATION COMMISSION. 9 
 
 other reasons, it was particularly important that our liquidation 
 in Europe should be accomplished as speedily as possible and be- 
 fore the officers and men who were familiar with various under- 
 takings should be demobilized and their services no longer avail- 
 able. It is believed that not the least of the beneficial effects flow- 
 ing from this speedy liquidation was the rendering possible of the 
 prompt return to their homes and to their normal pursuits of our 
 soldiers drawn from civil life. The evacuation of Europe by 
 American troops has been accomplished in a phenomenally slTort 
 time, and the work of liquidation of both stocks and claims has kept 
 pace Avith it. The United States has been relieved of the trouble 
 breeding task and of the enormous overhead expense of disposing 
 at retail of the irregular, unbalanced, and rapidly deteriorating 
 stocks located 3,000 miles from home. The settlement of claims 
 has eliminated countless opportunities for annoying controversies 
 which might have proved endless sources of bitterness between us and 
 the Governments and peoples of our Allies. Slightly over a year 
 after the signing of the armistice, Ave find the Army home, bringing 
 w^th it the good-will of the Governments and their nationals with 
 whom America made common cause, the surplus stocks have been 
 sold, and practically every claim settled. 
 
 Respectfully submitted, 
 
 Edwin B. Parkek, 
 Chairman^ United States Liquidation Com/mission — 
 
 Wa/r Department. 
 Washington, D. C, May 31, 1920, 
 
BRIEF REVIEW OF THE ACTIVITIES OF THE UNITED STATES LIQUIDATION 
 COMMISSION— WAR DEPARTMENT. 
 
 I. ORGANIZATION AND FUNCTIONS. 
 
 The signing of the armistice, November 11, 1918, found the United 
 States and the nations associated with her in the Avar ahnost as 
 unprepared for peace as they had been, a few years before, unpre- 
 pared for war. The various powers had continued to press their 
 military operations with full vigor up to the very last moment. 
 It would not have been prudent to do otherwise, for there was 
 always a chance that the armistice might be rejected or delayed. 
 The constant flow, therefore, of both men and materials into France 
 continued without interruption to the very end. 
 
 Numerous stocks had been assembled by the United States both 
 at home and abroad, for the equipment and supply of over 2,000,000 
 men in France and over 2,000,000 more at camps in the United 
 States and rapidly moving tow^arcl France. On November 11, 1918, 
 the greater part of these stocks became surplus. 
 
 Where and how, to whom, and on what terms should these stocks 
 be sold? What were the needs of the various nations of Europe 
 with respect to them? To what extent, if at all, w^as it practicable 
 for our Government to transport them, by land or by sea, with 
 both kinds of transportation demoralized by the war? To what 
 extent could commerce absorb, for peace-time uses, the vast stores 
 of stocks assembled by the various nations for purposes of war? 
 To what extent could France, Belgium, and the " Liberated Na- 
 tions " of Central Europe use them to repair their wasted and dev- 
 astated areas? Could these stocks be an important factor in re-es- 
 tablishing industry and a normal state of affairs in the countries 
 threatened by Bolshevism? In the light of the impoverished con- 
 dition of many of the peoples of Europe, as a result of war, who 
 was in a position to pay for what should be bought, and to whom 
 could credit be properly extended? In the light of the unprece 
 dented fluctuations in the rates of exchange of the currencies of the 
 various nations, which of them could afford to pay in terms of 
 
 11 
 
12 UNITED STATES LIQUIDATION COMMISSION. 
 
 money acceptable to our Government, and to whom could dollar 
 credits be given? 
 
 Our Government was suddenly called upon to turn from the busi- 
 ness of makintr war to answer, and to answer promptly, all of these 
 and numerous other questions involved in the disposition of the 
 surplus war stocks, and the liquidation of war claims. While it may 
 be that men of experience and ripe judgment might have held diver- 
 gent views regarding the answer to some of these duestions, there 
 was one point on which all of the people of the Ignited States agreed, 
 namely, that Avhatever the cost, Avhatever the inconvenience, the men 
 who had been sent across the water to wage war, now that the vic- 
 tory had been won and their purpose accomplished, should be 
 speedily returned, demobilized, and permitted to resume their former 
 pursuits, to live their own lives, in their own country, in order that 
 that country might return as rapidly as possible to normal conditions. 
 
 The cost to the Nation of maintaining this civilian soldiery abroad 
 was veiy great, not only as a drain on the Public Treasury, but also 
 on the private fortunes of the men and on the industrial conditions 
 of the country. The demand for their prompt return was so insistent 
 and so persistent that frequently other considerations had to yield : 
 and it, in no small measure, determined the solution of many of the 
 problems of liquidation. The men who were tired from the fighting 
 and elated by the victoiy could not be asked to remain indefinitely 
 to engage in merchandizing, either at wholesale or at retail, the 
 numerous stocks which had been assembled for war. 
 
 It was believed that a civilian commission, working in co-ordination 
 w4th the commander-in-chief of the American Expeditionary Forces 
 and with the commanding general of the Services of Supply, and, 
 through them, with each service of supply, could be more effective as 
 a central agency for directing the licpiidation of stocks, and the 
 adjustment of claims in Europe than could a purely military body. 
 
 It was believed that, under the legislation existing at the time, the 
 Secretary of War could, by direction of the President and as an 
 incident to the war, create such a commission and clothe it with suit- 
 able power to dispose of these claims and of these surplus stocks.^ 
 
 In order, however, that all possible doubt on the legality of the 
 Commission's power might be removed. Congress passed an act which 
 became law on March 2, 1919,- conferring power on the Secretary 
 of War, " through such agency as he might designate or establish, to 
 make equitable and fair adjustments" of claims arising out of war- 
 time agreements or negotiations. 
 
 1 See Appendix I for the text of the Act of May 10, 1918, and of the Act of July 9, 1918, 
 both authorizing sales of war supplies to associated nations and to individuals, corpora- 
 tions, and societies. 
 
 » See Appendix II for the text of section 3 of the Act of March 2, 1919, granting to 
 the Secretary of War power to make equitable adjustments of war claims. 
 
UNITED STATES LIQUIDATION COMMISSION. 13 
 
 The United States Liquidation Commission — War Department, 
 which will be referred to in this report as the " Commission,-' was 
 created by General Orders, No. 24, issued February 11, 1919,^ and 
 designated as the central agency for the supervision and direction of 
 (a) the disposition of all claims of every character between the 
 United States, on the one part, and any foreign State or Govern- 
 ment, or their nationals, on the other part, growing out of or in any 
 wise connected with the war; and (h) the disposition of all prop- 
 erty or interest in property of whatever kind or nature belonging to 
 the United States, acquired, constructed, or manufactured in connec- 
 tion with or incidental to the war and now located beyond its terri- 
 torial limits. 
 
 Immediately following the passage of the act of March 2, 1919 
 (supra), the Secretary of War caused to be issued General Orders, 
 No. 40,* designating the Commission, already created, as the agency 
 through which the powers granted by this act should be exercised in 
 so far as they related to dealings Avith foreign Governments or their 
 nationals, with the exception of Canada. 
 
 The Commission as originally formed consisted of four members, 
 viz., Edwin B. Parker (chairman). Brig. Gen. Charles G. Dawes, 
 Homer H. Johnson, and Henry F. Hollis. The organization meet- 
 ing of the Commission was held in Paris on March 17, 1919. 
 
 On July 26, 1919, when the bulk sale to France was practically 
 consummated. Gen. Dawes and Mr. Johnson tendered their resig- 
 nations, which were accepted. Gen. Dawes returned to the United 
 States, where, after his demobilization, he resumed his duties as 
 president of the Central Trust Co. of Chicago, having given freely 
 to his country of his time and means throughout the Avar. Mr. John- 
 son joined a commission created by the peace conference to study 
 and re])ort on conditions in Poland. The membership of the Com- 
 mission vcns then reduced to three, and Col. J. H. Graham, who had 
 for sometime past been acting as executive officer of the Commis- 
 sion, Avas made a member. On October 31, 1919, Senator Hollis ten- 
 dered his resignation, AA-hich Avas accepted, and the vacancy thus 
 created Avas never filled. 
 
 Upon the organization of the Commission, Junius G. Adams, 
 a member of the Asheville, N. C, bar, formerly a judge advocate 
 Avith the rank of major, became the Commission's executiA^e secre- 
 tary. He attended all the meetings of the Commission and partici- 
 pated in the deliberations, prepared the minutes of all official pro- 
 ceedings, and organized and directed the activities of the Commis- 
 sion's clerical staff. He continued in this position until he Avas sent 
 
 8 See Appendix III for text of General Orders, No. 24. 
 * See Appendix lA' for text of General Orders, No, 40. 
 
14 UNITED STATES LIQUIDATION COMMISSION. 
 
 by the Commission to Germany,^ when he was succeeded by Lieut. 
 Col. Edward T. Noble. 
 
 In defining its policies, the Commission made it clear that it did 
 not propose to create an organization to supersede such existing 
 agencies of the American Expeditionary Forces as were at that time 
 discharging, in whole or in part, the duties falling within the Com- 
 mission's jurisdiction. It proposed, rather, to supervise and direct 
 such activities of these agencies, acting through and in cooperation 
 with them, creating new ones or supplementing old ones only where 
 some new^ development made such action necessary. It would have 
 been impossible for the Commission to have created in Europe, at 
 that time, an independent civilian organization of sufficient size to 
 supersede the Army's forces and to carry out all of the details of 
 the work for which the Commission was responsible. 
 
 With the wholehearted co-operation of Gen. Pershing, of Ma j. Gen. 
 Harbor d, and of the chiefs of the several services of supply under 
 him, no time was lost in taking measures to harmonize the work of 
 the Commission Avith that of the various Army units, and in perfect- 
 ing an organization suitable for making thorough and speedy investi- 
 gations looking to the adjustment of claims and the disposition of 
 stocks. For the purpose of instructing all concerned in the matter of 
 the relation of the Commission to the several agencies of the Ameri- 
 can Expeditionary Forces, (xeneral Orders, No. 18." prepared jointly 
 by the chairman of the Commission and Gen. Harbord, were issued 
 from the headquarters of the Services of Supply. 
 
 Under the plan outlined in this order, the Army services continued 
 in the custody of all property. They were to exhibit it to pros- 
 pective buyers and, whenever sales w-ere made, deliver it and procure 
 the receipts. The General Sales agent of the Services of Supply 
 functioned also for the Commission, negotiating sales subject to its 
 approval. The several services of the Army were instructed to col- 
 lect complete data on all claims falling within their respective juris- 
 dictions and to report them with recommendations to the Commis- 
 sion through the Army Finance Officer. The process of paying cur- 
 rent or other regular bills and accounts through the usual channels 
 w^as not disturbed. The work of the Division of Renting, Requisi- 
 tion, and Claims, so ably carried on by Col. Winship and his staff, 
 was not interfered with. 
 
 Regular daily meetings were held by the Commission for the trans- 
 action of business, for the consideration and study of problems, for 
 receiving and acting upon reports, and for hearing and deciding 
 claims. The minutes of these meetings, carefully indexed, furnish a 
 
 5 See p. 34 of this report. 
 
 « See Appendix V for text of A. E. F. G. C, No. 18, S. O. S., 1919. 
 
UNITED STATES LIQUIDATION COMMISSION. 15 
 
 convenient and condensed chronological record of the work of the 
 Commission. 
 
 On Friday morning of each week a special meeting was held in the 
 office of the chairman, which meeting was always attended by the 
 Commissioners, by the General Sales Agent, by members of the Com- 
 mission's staff, and by officers of the Army interested in the par- 
 ticular word under consideration. The work relating to liquidations 
 carried on by the various services w^as reviewed at these meetings, 
 plans for each ensuing week Avere formulated, problems were freely 
 discussed, information was sought by the Commission, and opinions 
 were invited and frankly expressed. 
 
 The Commission established an Accounting Section, whose func- 
 tion was to co-ordinate accounts and claims in favor of and against 
 the various Governments with which the Army had dealings. This 
 Accounting Section rendered valuable service in the negotiations 
 resulting in the general settlement agreements with France, Italy, 
 and Belgium, and also in the settlements and negotiations with 
 Great Britain. It has also been of considerable assistance to the 
 Commission in the compilation of statistics prepared from informa- 
 tion furnished by the various Army services. 
 
 The activities of the Commission divide naturally into two main 
 groups: (1) Those relating to sales, and (2) those relating to settle- 
 ments and adjustments of claims. Because of the location of stocks 
 and of claimants, these groups, in turn, divide geographically. The 
 account of the work will be given according to these divisions. 
 
II. SALES. 
 
 SALES TO THE REPUBLIC OF FRANCE. 
 
 When the Commission took up its work, it found over a million 
 and a half of American troops in Europe, caring for American prop- 
 erty scattered all over France, over England, on the Khine, and, in 
 limited amounts, in Italy, Belgium, and Spain — property of every 
 kind and description : installations and movables, factories, ware- 
 houses, docks, railroad yards, railroad equipment, motor transport, 
 telephone and telegraph lines, food, clothing, tobacco, ammunition, 
 guns, machinery, raw materials. Some of it was new, some of it 
 was worn out, much of it was used. 
 
 National policy demanded, international policy demanded, that 
 these troops be sent home without delay. Every day they remained 
 in Europe cost a huge sum, not only to the Nation as such in pay 
 and subsistence and in the loss of their enormous producing capacity 
 at home, but in personal loss to the individuals because of delay in 
 resuming their accustomed pursuits. 
 
 The docks, factories, assembling plants, and other installations 
 were constructed on land belonging to some 150,000 separate owners, 
 giving rise to unnumbered claims for rents, requisitions, restorations, 
 and damages. This property had been assembled and installed under 
 extreme pressure, for immediate and temporary use, with an eye 
 single to winning the war, and with only casual reference to its 
 dis-establishment. Most of it was located in a country bled white in 
 every vein by more than four years of war. It was located in a 
 country whose exchange was falling on every market in the world. 
 It was located in a country the traditions of whose nationals are 
 those of careful and exacting purchasers, and a country fully aware 
 of its financial distress and consequent consideration due it in solving 
 its problems of peace by the peoples associated with it in fighting 
 the battles of war. But it was located in a country filled with a deep 
 and genuine, and, let us hope, lasting good-will toward America. 
 
 At the threshold of these labors the members of the Commission 
 
 examined with studied care, both individually and collectively and 
 
 in conference with the Secretar}^ of War, the problem involving 
 
 the wisdom of the United States selling its European surplus stocks 
 
 16 
 
UNITED STATES LIQUIDATION COMMISSION. 17 
 
 abroad or of transporting them to America for sale. Obviously 
 tlie installations had to be sold in France; for, if they had been 
 dismantled, their salvage value would scarcely have covered the cost 
 of salvaging, of restoring the land, and of settling rental, requisi- 
 tion, and damage claims. 
 
 The economic as well as the social welfare of our country made 
 the demand imperative that every available trans-Atlantic vessel 
 should be pressed into service for the speedy return of our troops 
 to America. Past experience had proven and subsequent experi- 
 ence has confirmed that it would have been impracticable to trans- 
 port by rail to the ports, within any reasonable time, these immense 
 stocks. The French railroads were thoroughly demoralized b}^ the 
 four years of war during which time maintenance had been reduced 
 to the minimum; while additions, betterments, and extensions had 
 been entirely lacking. Consequently congestion in rail transporta- 
 tion was unprecedentedly great in France. 
 
 A very large percentage of these stocks, manufactured and as- 
 sembled under pressure, handled and re-handled under tremendous 
 handicaps, were in a condition and of a character which clearly 
 would not have justified the cost of returning them to America. As 
 our troops were evacuating France, we had to look forward to the 
 time when we would be left without facilities for keeping posses- 
 sion of, guarding, handling, delivering, or shipping home these 
 goods. It was clear that the hungry, cold, and industrially de- 
 moralized people of Europe stood in crying need of a large per- 
 centage of these supplies — supplies which under existing conditions 
 could not, as a whole, be advantageously returned to America at 
 any time, and such part of them as might justify the cost of han- 
 dling and transportation could hardly be held in France until con- 
 ditions should become nearly enough normal to make possible their 
 shipment. It was, therefore, after the most careful and painstaking 
 consideration, and after prolonged conferences between the Secre- 
 tary of War and the members of the Commission, that the con- 
 clusion was definitely and unanimously reached that it was to the 
 interest of the United States and the duty of the United States to 
 sell the major part of these European surpluses in Europe. 
 
 But there were several not inconsiderable obstacles in the way of 
 a speedy and businesslike disposition of these stocks even in Europe. 
 France really needed and wanted many of them. Belgium wanted 
 and needed some of them. The so-called "liberated countries" of 
 Central Europe and the "Near East were in dire need of all they 
 could get in the way of foodstuffs, clothing, medical supplies, and 
 transportation equipment. But none of these countries were in a 
 position either to pay cash or to purchase on short-time credits. 
 183176—20 2 
 
18 UNITED STATES LIQUIDATION COMMISSION. 
 
 The exchange of every one of them was far below normal and was 
 declining rapidly. 
 
 The first problem, however, which confronted the Commission 
 was that of determining just what it had for sale and what would 
 be reasonable selling prices. The task of preparing comprehensive 
 but condensed working inventories, classified and summarized within 
 a compass small enough for practical use, setting forth the quantities, 
 nature, and condition of these stocks, their cost laid down in France, 
 and their probable utilization or sale value, was one of immense 
 proportions. This difficulty Avas tremendously enhanced by the facts 
 that (1) the stocks had been acquired from many different sources, 
 (2) they were located in several hundred places, (3) their quantity 
 and condition was being reduced by constant use, and (4) their 
 value was too often diminished by handling, natural deterioration, or 
 by unavoidable exposure or disuse. 
 
 After careftil study and conferences with the Army officials and 
 especially with the chiefs of each of the services and the members of 
 their staffs, the Commission adopted a plan and prescribed a form for 
 the compilation of inventories of personal or movable stocks (as 
 distinguished from installations, which were separately inventoried) 
 under 18 distinct categories or classes, each of which categories was 
 in turn subdivided.^ 
 
 The task of compiling these inventories, summarizing and classi- 
 fying them, with a view to showing, so far as practicable, the relative 
 conditions of the various articles was one bristling with difficulties, 
 especially as during all of this time the American Expeditionary 
 Forces was a " going concern." The depots were necessarily drawn 
 upon for current supplies for the troops in France, for return of 
 materials and equipment to the United States, and for supplying 
 and equipping the American forces in Germany. New stocks were 
 coming in from time to time as agreements in cancellation of con- 
 tracts of purchase or manufacture were reached and small deliveries 
 taken in liquidation. Stocks were constantly flowing into the main 
 depots from smaller posts and outlying districts as these were evacu- 
 ated. For the compilation of these inventories the Commission was 
 compelled to rely upon the Army, which held the custody of the 
 stocks. The Army had to rely upon civilians who had come to 
 France to fight, not to engage in Army clerical work — men who hav- 
 ing won a glorious victory had one thought uppermost in their 
 minds — to return home. The Army had a personnel constantly shift- 
 ing and changing, due to Avithdrawals for return to the United States, 
 to civilian life and interests. But it is believed that each service did 
 its best, and, on the whole, did well, considered in the light of all of 
 
 ' See Appendix VI for list of the 18 " Categories," with the classes of stocks ander 
 each. 
 
UNITED STATES LIQUIDATION COMMISSION. 19 
 
 rlie circumstances. It is interesting, parenthetically, to note here that 
 neither the British nor the French services have even yet compiled a 
 general inventory of their surplus stocks. 
 
 The problem of valuing the inventoried stocks was fraught with 
 many difficulties, Avhich had the most painstaking consideration of 
 the Commission and its advisors. Clearly, cost, condition, possible 
 usefulness, supply and demand were the principal factors for consid- 
 eration in determining selling value. But cost varied greatly on ac- 
 count of the multiplicity of sources of supply of almost an infinite 
 number of articles, and the unknown 'and necessarily estimated ex- 
 penses of transportation and handling. Condition varied with use, 
 extent of handling, care, action of the elements, etc. Utilization 
 value is necessarily indefinite, depending on demand and supply and 
 the location of the stocks and transportation facilities, on whether 
 the stocks are complete or broken, balanced or unbalanced, and on 
 numerous other factors. As the work of preparing, classifying, and 
 summarizing the inventories by categories progressed, the problems 
 of valuing these stocks were studied intensively and continuously 
 by the Commission and its advisors and, at the same time, by the 
 French authorities, with whom the Commission was negotiating for 
 their sale. 
 
 The work of supervising for the Commission the compilation of 
 inventories, according to categories, was intrusted to Col. J. H. 
 Graham, who had already, in the Army Engineer Corps, abundantly 
 demonstrated his ability, thoroughness, and trustworthiness. It took 
 a strong force, working continuously and under constant pressure, 
 more than six weeks to complete these inventories and to sunmiarize 
 and classify them. As the work progressed, the Commission, with 
 the assistance of Col. Graham, the chiefs of the services and experts 
 (h'awn from each service, carefully stijdied the inventories, took into 
 account and discussed every known factor of value, giving to each 
 factor such weight as seemed proper, and fixed and determined what 
 they believed to be reasonable selling values. Actual war costs, in- 
 cluding transportation and handling, were naturally the starting 
 point and one of the determining factors. Pre-war normal costs were 
 considered and quite frequently these were found too low. As these 
 stocks Avere assembled, shipped, handled, and stored under conditions 
 of abnormal pressure, their depreciation was in many instances ab- 
 normally great. Many of the stocks were designed for war uses only 
 and had a relatively small commercial value. Both France and Eng- 
 land had large surpluses of many of the materials, which supple- 
 mented by our stocks in Europe, were more than the markets of the 
 world could readily absorb for several years to come. 
 
 All of these facts, and many other incidental ones, were taken into 
 account in arriving at the "estimated present values" or " utiliza- 
 
20 UNITED STATES LIQUIDATION COMMISSION. 
 
 tion values " of these stocks by cateo^ories. These were- intended to 
 represent prices at which they could, when classified, assorted, and 
 conditioned, be sold in France at wholesale. From the a£:greofate 
 amount this reached it was obviously proper to make liberal deduc- 
 tions to cover the cost of merchandizini^. labor, storage, insurance, 
 interest, and other overhead expenses. The fact was taken into ac- 
 count that there will inevitably be a large deterioration, not only 
 in the quality of the stocks, but also in their market price before all 
 of them can possibly be disposed of. The Commission took into 
 account the risk of loss by fire, by theft, and by other causes. They 
 took into consideration the fact that the stocks were widely scat- 
 tered, had not been assembled for commercial purposes, and were 
 not in the hands of a going concern, equipped to replenish them 
 from time to time and market them to the best advantage. Giving 
 due allowance to all of these considerations, it was concluded that 
 a fair deduction from the aggregate "estimated value" of these 
 stocks for the purposes of a bulk sale would be 25 per cent. On 
 this basis the stocks and installations were yalued, as of July 19, 
 1919, at $562,23(),800.02,« and this is the value which the Commis- 
 sion had in mind when it entered upon the final stage of its negotia- 
 tions with the representatives of France, which resulted in the con- 
 summation of the " bulk sale." 
 
 In the meantime the Commission, beginning with interviews held 
 in March, had been diligent in pressing its negotiations with the rep- 
 resentatives of the French Government with a view to concluding a 
 sale or to developing the fact that one could not be made. M. Paul 
 Morel, the Sous-Secretaire d'Etat aux Finances pour Liquidation des 
 Stocks (the minister particularly charged with the liquidation of 
 war stocks), had been designated by the French Government as its 
 representative to deal with the Commission in matters pertaining to 
 the contemplated purchase. Numerous conferences were held with 
 him. At a long meeting on April 7, it was agreed in principle that 
 France should purchase all of the American installations at a price 
 to be agreed upon, assuming, as part of the price, the payment of all 
 claims for rents, requisitions, restorations, damages, and other 
 charges against the United States Avhich had arisen against these 
 properties. 
 
 The disposition of the installations was the first problem under- 
 taken by the Commission. Immediately after its creation and before 
 the chairman left the United States, a cable was sent directing the 
 preparation of an inventory of all American Expeditionary Forces' 
 
 8 See Appendix VII, Chart A, which shows summaries of values by categories on 
 which the final negotiations with France were based. The difference between column F 
 and column H is represented by a series of differences in quantities. These reductions 
 are shown by services on Chart B, Appendix VIII. They are calculated also by cate- 
 gories, and represent sales and other dispositions since the inventories were made. 
 
UNITED STATES LIQUIDATION COMMISSION. 21 
 
 installations in France. A very capable committee of officers from 
 the Engineering Corps, with Col. J. H. Graham as chairman, was 
 promptly selected and undertook this work. Later Brig. Gen. Jad- 
 win became chairman of the committee and the 500-page report which 
 it prepared is familiarly knoAvn as the "Jadwin Report." Following 
 the conference of April 7, a copy of the Jadwin Report, showing 
 " war costs " and estimated " normal costs," item by item, of all the 
 American installations in France, was given to M. Morel, who im.me- 
 diately arranged to have a large corps of his engineers make personal 
 inspections and reports on these installations, checking against the 
 Jadwin Report. The methods adopted by the French in valuing this 
 property differed in several respects from those adopted by the Jad- 
 win committee. In order to adjust and reconcile these differences, 
 the Commission called to its aid Col. J. H. Graham, who, as already 
 pointed out, had a large hand in the preparation of the Jadwin Re- 
 port. He organized a staff and placed an American representative 
 with each of the units of French engineers sent out by M. Morel to 
 make a first-hand study and report on the condition and value of 
 the installations. When the reports were completed. Col. Graham's 
 conmiittee held a series of meetings covering a period of more than 
 two weeks with the committee of French engineers at which notes 
 V, ere compared, adjustments made, and differences reconciled. 
 
 The Jadwin Report showed total war costs of all American installa- 
 tions in France, including transportation and handling of material, 
 soldier labor, and all other elements, at $165,661,000 and normal costs 
 of the same properties at $81,543,000. The joint American and 
 French committee, after making deductions for the estimated liabili- 
 ties assumed by France for rents, requisitions, restorations, and dam- 
 ages, placed the net present estimated value of all American installa- 
 tions in France at $39,256,500. 
 
 In comparing these figures and judging their significance, one must 
 bear in mind that these installations were of every conceivable type — 
 barracks, camps, hospitals, warehouses, machine shops, docks, tele- 
 phone and telegraph lines, railroad yards, etc. They had been con- 
 structed on land for the most part requisitioned for war use and be- 
 longing to approximately a hundred and fifty thousand separate 
 owners. Most of these owners had claims against the United States 
 for rents, for requisitions, for damages, for restorations, for damages 
 to crops, for removal of vineyards, orchards, trees, and structures, 
 for building roads, putting in drainage systems, etc. Our right to 
 occupy these lands terminated with the war. We had taken them 
 over under obligations imposed by law to return the lands to their 
 owners in the condition in which we had found them. While the 
 French Government, under its power of eminent domain, could ac- 
 quire or permit us to acquire these properties for war use, the French 
 
22 UNITED STATES LIQUIDATION COMMISSION. 
 
 law does not permit the exercise of this power in our behalf for ac- 
 quiring permanent titles. In fact, the French law does not permit 
 a foreign sovereign power to acquire a permanent title to real estate 
 within its domain except by courtesy for the use of diplomatic repre- 
 sentatives. The French Government, however, could acquire per- 
 manent title by eminent domain to such of these properties as it might 
 wish to preserve or dispose of in their present condition. Manifestly, 
 therefore, our position as party to a bargain was one of extreme dis- 
 advantage. We had either to sell to the French Government or to 
 tear down and salvage the constituent materials. 
 
 Under a salvage program many of the properties would b.ave 
 turned out to be distinct liabilities instead of assets, especially as we 
 would have been required, at a ver}^ heavy overhead ex})ense. to. have 
 negotiated and settled a very large number of claims for rents, dam- 
 ages, and restorations. It is estimated that it would have required the 
 labor of 40,000 men for a period of 6 or 8 months to dismantle 
 these installations and salvage the constituent materials. This task 
 would have fallen upon our Army Engineer Corps, for competent 
 French labor was not obtainable. Under agreement reached with 
 M. Morel, however, the selling value of each piece of property was 
 arrived at, not by considering its salvage value to the United States, 
 but by taking into account every factor entering into the determina- 
 tion of the net " utilization value " of such piece of property to the 
 French Government. On the whole, it is believed that the result 
 obtained was a very fair one, alike to America and to France. 
 
 While these studies with respect to the value of the fixed prop- 
 erty were in process, the Commission pressed upon M. Morel and 
 the other French representatives the plan which it had been develop- 
 ing for selling to France the major portion of the movable or \)ev- 
 sonal American Expeditionary Forces' property in France. At first 
 the French representatives suggested that they might select such of 
 these stocks as they could use to advantage and undertake to agree 
 with the Commission on a price and terms of payment. This })lan 
 would have left on our hands vast stocks of a character and condi- 
 tion such that their return to America would not have been justified, 
 and at the same time they would have been stocks of which France 
 and England were carrying large surpluses. Our stores would have 
 been left creamed off and more unsalable than they were at the start. 
 The Commission urged upon the French representatives that as all 
 these stocks were on their soil and many of them located where they 
 were greatly needed and as great quantities of them could be used 
 to advantage in the reconstruction of the devastated regions, France 
 was in a most favorable position as buyer and, under the circum- 
 stances, it was her duty to buy them in bulk, taking the bad with thib 
 good. The Commission desired onlv to reserve a sufficient auantitv 
 
UNITED STATES LIQUIDATION COMMISSION. 23 
 
 of supplies and equipment for the use of our Army while in Europe, 
 of foodstuffs, clothing, and medical supplies, to satisfy the pressing 
 needs of the "liberated nations," and to cover such sales as were 
 being negotiated in Belgium, Spain, and elsewhere. 
 
 In response to this, M. Morel submitted three alternative proposals : 
 (1) France would sell these stocks as agent of the United States, 
 accounting without profit for the proceeds; (2) France would take 
 the stocks at a fixed price, sell them, and if the net proceeds should 
 exceed the fixed price, would account to America for the balance; 
 but if the net proceeds should be less than the fixed price, America 
 should pay to France the difference: or (3) France would purchase 
 the stocks outright at a fixed price. The third proposal was con- 
 sidered by the Commission as the only feasible one and was accepted 
 by it in principle. 
 
 While these negotiations were in progress, the Commission was at 
 the same time using every agency at its command to develop markets 
 and to press sales outside of France. Numerous and extensive sales 
 were made to the various " liberated nations," to relief societies, and 
 to other associations and to individuals. On May 6, the principle 
 of the " bulk sale " to France was agreed upon, subject to a con- 
 clusion between the parties on price and terms of payment; and it 
 was understood that from that day forward all sales made by 
 America to France should be billed in the usual way and be paid for 
 by France, should the "bulk sale" miscarry, but that such bills 
 should be cancelled by America, if the " bulk sale " was consummated. 
 It was further agreed that the Commission might continue to make 
 sales to the " liberated nations," to Belgium, to Spain, and to others, 
 but that all proposals for such sales should be submitted to M. Morel 
 in order that he might keep fully informed concerning the extent 
 and condition of the stocks on which his men were busilj^ engaged 
 calculating a price. It was in accord with this understanding that 
 large sales were made for export out of France between the 6th day 
 of May and the 25th day of July, when the terms of the " bulk sale " 
 to France were finally settled. 
 
 Notwithstanding the greatest diligence on the part of the Com- 
 mission in pressing its negotiations, progress was too slow to keep 
 pace with the demand for the rapid withdrawal of troops, especially 
 from the advance sectors. Therefore, on May 1, an agreement was 
 entered into between the Commission and the French Government 
 under the terms of which the American Expeditionary Forces could 
 withdraw their troops from any particular zone in France, and, by 
 giving 10 days' notice to the French commander in such zone, deliver 
 to the French on joint inventories all American stocks located in 
 the *zone. These joint inventories set forth the stocks, showing 
 " kind," " quantity," and " percentage of condition as compared to 
 
24 UNITED STATES LIQUIDATION COMMISSION. 
 
 new," and stipulated that the stocks were held by France without 
 expense to America and subject to the directions of the Commis- 
 sion. They were signed by French and American officers.^ 
 
 This procedure did not apply to 18 of the largest depots which 
 were retained in the custody of America until the stocks were defi- 
 nitely sold. This plan made it possible to continue the homeward 
 movement of troops without interruption, and made it unnecessary 
 for us to hold thousands of men in France as custodians of these 
 stocks until they could be delivered under the terms of the sale. 
 
 During all of this time the work on the inventories was being 
 pressed forward. As soon as the summaries by categories could 
 be finished for any service they would be handed to M. Morel, who, 
 through his representatives, would use them as a basis for check- 
 ing and inspecting the stocks. While this work was going on. it 
 became evident that the French were very hesitant about taking the 
 whole body of materials in a bulk, for it was becoming clear to 
 them that the French Government already possessed stocks of cer- 
 tain categories in excess of the amount which France could readily 
 absorb for some time to come. Unfortunately, these were chiefly 
 categories of materials whose return to the United States could not 
 be justified and which were at the same time a drug on the markets 
 of Europe, such as barbed wire, trench materials, ammunition, field 
 cooking utensils, gas materials, etc. 
 
 Finally, after much pressure, on July 2, M. Morel submitted \u< 
 first bid, viz, 1,500,000,000 francs. It was submitted orally in con- 
 ference and the reply was immediately made that the Commission 
 could not give the bid serious consideration. Numerous prolonged 
 conferences followed. In order that there might be no misunder- 
 standing of the Commission's position, the chairman wrote at length 
 to M. Morel, on July 7, a letter the spirit of which can be gathered 
 from the following excerpt. 
 
 "After the sacrifices, which can not be measured in terms of dollars, which have 
 been made by both of our peoples, it would be criminal stupidity on the parts 
 of the representatives of both our Governments to fail to agree on the dis- 
 position to be made of the surplus war supplies remaining on French soil. This 
 Commission sincerely hopes that it will not be forced to sell for shipment out 
 of France anything that the French people really need or can utilize to advan- 
 tage, and we are therefore not only willing but anxious to make to the Gov- 
 ernment of France a price for this property which will be attractive to it and 
 to extend credit for the entire purchase price. 
 
 8 See Appendix IX for form of receipt given by the French Army to the American 
 Army upon the turning over of stocks before the sale. The inventory referred to had the 
 following headings : " Article," '* Unit," " Quantity," " Percentage of condition as com- 
 pared to new " ; and was initialed on each page by both of the signing oflBcei's. • 
 
UNITED STATES LIQUIDATION COMMISSION. 25 
 
 " May I not in conclusion remind j-ou tliat, as the treaty of peace with Germany 
 has been signed and measures have been taken by your Government and ours, 
 together with their associates, to insure a lasting peace, and as the American 
 Expeditionary Forces are being very rapidly withdrawn and returned to their 
 homes, it is imperative that the surplus war supplies belonging to our Govern- 
 ment, in France, should be speedily disposed of, if not to the French Government, 
 then to others who urgently need and are seeking to acquire them, to the end 
 that they may be promptly and fully utilized to bring back a measure of pros- 
 perity to the suffering peoples of the world." 
 
 Xo good purpose could be accomplished by showing here in detail 
 the course of the negotiations during the succeeding three weeks. 
 They were carried on not only by the Commission and M. Morel 
 but by M. Tardieu, Commandant Oppenheim, Commandant Var- 
 aigne, and numerous other representatives of the French Govern- 
 ment. Besides the question of price, the question of the currency in 
 which the French obligation should be stated, was most earnestly 
 debated between the parties. The French representatives insisted 
 that the purchase price should be stated and paid in francs, while 
 the Commission declined to consider any offer not expressed in 
 dollars. M. Tardieu, after conferring with the French treasury, 
 proposed that the purchase price might be stated in dollars, but 
 that a condition should be added to the eftect* that if the cost to 
 France of finally discharging the indebtedness sihould be more than 
 5.18 francs per dollar, such excess should be borne equally by 
 France and the United States. This proposition was declined. 
 
 On July 19 the following proposal was submitted by the French 
 representatives : 
 
 1. France should pay five years after date 2,035,000,000 francs. 
 
 2. France, in her own way, should proceed to sell the American 
 stocks and, after deducting the expenses, divide equally with the 
 United States any balance exceeding the price named. 
 
 In response to this proposal the chairman expressed the following 
 views : 
 
 1. France would not wish to dispose of these stocks on a strictly 
 business basis, nor would she be justified in so doing, but she would 
 desire to use them, to a great extent, in connection with the rehabilita- 
 tion of her devastated regions, at prices and on terms which only 
 France could* afford to extend to her nationals. 
 
 2. It would be practically impossible for France to keep these 
 stocks segregated from her own property of the same class, and thus 
 impossible to make a separate accounting. 
 
 3. The plan seemed to contain the germs of controversy and fric- 
 tion which might in the end cost the two Governments more than 
 the value of the property involved. 
 
 4. A definite, final, complete, and unconditional sale, leaving be- 
 hind no loose ends calculated to breed trouble, was most desirable. 
 
26 UNITED STATES LIQUIDATION COMMISSION. 
 
 Finally, at a prolonged conference held on July 24, a tentative 
 agreement was reached on terms snbstantialh^ those contained in the 
 final bulk sale contract. The four members of the Commission, as 
 well as Col. Graham, participated in the discussion and the con- 
 sideration of this tentative agreement, and the Commission "unani- 
 mously voted to authorize and direct the chairman to prepare and 
 execute in the name and on behalf of the commission, the contract 
 which became the agreement for the bulk sale.^*' 
 
 Under this contract, dated August 1, 1919, the consideration mov- 
 ing from America is : All property — real, personal, or mixed, without 
 guaranty of quantity, qualit}^, or condition — belonging to the United 
 States War Department and located within France on that date ; save 
 and exceft (1) all animals; (2) property otherwise contracted to be 
 sold and valued at $77,265,597.83; (3) the equipment of individual 
 soldiers and military units returning home; (4) other military equip- 
 ment to be returned to the United States, valued at $15,000,000; (5) 
 equipment and supplies for American forces so long as they remain in 
 France, of the estimated value of $4,000,000; (6) Ked Cross supplies 
 valued at $10,000,000, with agreement by France to re-sell to America, 
 upon demand, further Red Cross material at cost to France." 
 
 lender this contract the considerations moving from France are : 
 (1) $400,000,000 in lO-year 5 per cent bonds, with semi-annual in- 
 terest from August 1, 1920; (2) the assumption by France of all 
 rents for installations accruing after August 1, 1919, and the agree- 
 ment of France to hold America harmless against all claims of every 
 nature whatever arising out of American occupation and use of such 
 installations and lands; (3) the waiver by France of all claims what- 
 soever for taxes or customs duties on properties imported into France 
 and sold since April 6, 1917. 
 
 Most of the property which the Commission sold in France was 
 brought in without the payment of import duties. Until this con- 
 tract was signed the French Government had never relinquished its 
 right to claim the payment of such duties, though the point was 
 vigorously pressed, both by the Commission and by the representa- 
 tives of the British Government in France, that the salvaging of 
 surplus war stocks was an incident of the war and as such they 
 could not be held subject to import duties. The French position on 
 this point was, however, a strong one. It was supported by a preced- 
 
 10 See Appendix X for (1) a copy of the bulk sale contract as signed; (2) the French 
 law of Oct. 21, 1919, ratifying the sale; (S) the letter of transmittal of Aug. 4. 1919, 
 and (4) the supplement to the letter of transmittal, dated Aug. 11. 1919. 
 
 11 All adjustments arising under these reservations or any of the other terms of this 
 bulk sale contract have been made by the Commission and the French Government and are 
 merged in the contract of general settlement dated Nov. 25, 1919, hereinafter referred to, 
 so that this bulk sale contract is now a completed transaction. 
 
UmTED STATES LIQUIDATIOl!^ COMMISSION. 27 
 
 ent set by the United States Government in dealing Avith the siir- 
 phis stocks left in the Philippine Islands at the close of the Spanish- 
 American War, the usual customs duties having been paid on such 
 stocks. The Commission had the inventories studied in connection 
 with the French tariff schedules, and it was found that $150,000,000 
 was a conservative estimate of the aggregate customs duties, payable 
 under the normal rules, for all of our stocks in France. This claim 
 was given weight in fixing the final purchase price of $400,000,000. 
 
 The Avisdom of making this bulk sale has been amply demon- 
 strated by subsequent developments, particularly by the experience 
 of the British (Tovernmeut. The course pursued by this Commission 
 was to promptly sell in large blocks what could be so sold to advan- 
 tage, and then sell the remainder in bulk to France. Notwith- 
 standing the fact that the British war stocks were so located in 
 France that it was unnecessary to ship them exceeding 200 miles 
 both by rail and water to reach central points in England, and Great 
 Britain was, therefore, not confronted with the problem of long- 
 distance hauls on overcrowded French railroads and a 3,000-mile 
 ocean voyage in order to reach her home markets ; the British authori- 
 ties decided that it was advisable for Great Britain to consummate a 
 bulk sale of their war stocks in France, and began negotiations with 
 the French authorities to this end during the time the negotiations 
 for the bulk sale of the American stocks were in progress. It is 
 reported that these negotiations are still pending. The cost of hold- 
 ing, ffuardins:, and caring for this immense war stock has been tre- 
 mendous, and the percentage of depreciation from natural causes, 
 exposure, theft, and general deterioration will amount to a very sub- 
 stantial part of their original value. These unsold stocks are of no 
 benefit to anyone and their value is constantly shrinking. 
 
 The English press has severely arraigned its Government for not 
 folloAving the example of America in disposing of these stocks : and. 
 while disclaiming any intention, even inferentially, of joining in such 
 criticism, we feel, in the light of subsequent events, that our Gov- 
 ernment has been fortunate in the policy of expedition which it 
 pursued. 
 
 From the point of view of the Commission, this French bulk sale 
 (1) accomplished a speedy disposition of the stocks, allowing the 
 American troops to return home promptly; (2) it relieved America 
 of the trouble-breeding task and of the enormous overhead expense 
 of otherwise disposing of the irregular, unbalanced, and rapidly 
 deteriorating stocks located 3,000 miles from home; (3) it relieved 
 America of the French claim for customs duties on these and other 
 stocks in France: (4) it relieved America of many thousand claims 
 
28 UNITED STATES LIQUIDATION COMMISSION. 
 
 of French nationals, claims which would have arisen for many years 
 to come, the settlement of w^hich would have c6st vast sums and 
 which would likely have been an endless source of bitterness between 
 the two peoples; (5) it has left America with a "clean slate" and 
 has eliminated countless opportunities for annoying controversies; 
 (6) it has afforded America an opportunity of helping France to 
 help herself in a manner not to offend the dignity of that nation, 
 inasmuch as the need of and value to France of these stocks in France 
 is much greater than is the need of them or their value to the 
 United States, and finally; (7) it has given America a very fair 
 money return. 
 
 SALES FOR USE OF " LIBERATED NATIONS." 
 
 Early in March careful studies w^ere made by the Commission of 
 the pressing needs of the peoples inhabiting the so-called " liberated 
 nations '' of Central Europe and the Xear East. These studies were 
 with particular reference to the extent to which the United States 
 would be justified in meeting these needs from sales of surplus war 
 stocks in Europe. Extended conferences were held with Her- 
 bert Hoover and numerous members of his staff. Information show- 
 ing political, commercial, and social conditions in these countries 
 came to us from this and other sources. 
 
 On March 17, the chairman of the Commission received a letter 
 from Mr. Hoover confirming what he had previously said in per- 
 sonal conversations and urging the importance of selling surplus 
 clothing to the peoples of these countries who were suffering from 
 cold and exposure. This was followed by a letter from President 
 Wilson, dated March 24, urging the Commission to accept so far as 
 it could consistently do so Mr. Hoover's views as to the terms upon 
 w^hich dealings should be undertaken with the liberated peoples. 
 The President added: 
 
 I would be glad, therefore, if the Commission could accept as its guiding 
 principle in these negotiations the fact that it is not only securing a rapid 
 liquidation of materials that may otherwise prove practically unsalable, but 
 also that it is an opportunity to perform a fine human service by approaching 
 the matter in the most sympathetic mind.'^ 
 
 Through long conferences not only with the representatives of 
 the nations and organizations seeking to make purchases, but with 
 members of the American peace commission and with many others 
 familiar with the needs of these peoples, their resources, and their 
 prospects; data were assembled with reference to which the Com- 
 
 13 See Appendix XI for (1) letter, Hoover to Parker, Mar. 17, 1919; (2) letter, the 
 President to Parker, Mar. 24, 1919 ; (3) letter, Parker to the President, Mar. 25, 1919 — 
 all dealing with the question of sales to the liberated countries. 
 
UNITED STATES LIQUIDATION COMMISSION. 29 
 
 mission was able to outline a basis for making sales and extending 
 credits in these countries. 
 
 The great work accomplished by the American Relief Administra- 
 tion, with Mr. Hoover at its head, is known to all the world. The 
 funds, however, which were at the disposal of this organization, were 
 so limited as compared to the extent of the problems w^ith which it 
 had to cope, that it w^as unable adequately to supply even the most 
 elementary necessities of life to these peoples. The Commission was 
 called upon to dispose of vast quantities of salvaged clothing, includ- 
 ing outer garments, underwear, blankets, boots and shoes (many 
 of them patched) which, though decent and warm, had small com- 
 mercial value. The Commission was also called upon to dispose of 
 large quantities of foodstuffs, some of w^hich, by reason of its qual- 
 ity and condition and of the form of package in which it had been 
 prepared for war uses, had comparatively small commercial value. 
 Both of these classes of stocks seemed peculiarly suitable for reliev- 
 ing the absolute hunger and want of the liberated peoples. 
 
 Sales were made not only of subsistence and clothing, but also of 
 the elementary instruments of industry and transportation, in order 
 that these people might be able to go to work and serve themselves, 
 instead of continuing to be, as many of them were, objects of charity. 
 It was believed that these sales would also serve a very important 
 function in stabilizing the governments and social institutions which 
 were beginning to take shape against most terrible odds, and that 
 they would help to check the insidious advances of Bolshevism. 
 
 All of these countries are relatively rich in natural resources and 
 are for the most part inhabited by sturdy and competent races. A 
 study of such resources and of the number and quality of their in- 
 habitants convinced the Commission that, under all of the conditions 
 as they existed at the time, the United States Avas justified in taking 
 the risk of extending credits, especially as their indebtedness to us 
 constituted the major portion of their national debts. In some 
 instances it was felt desirable to make sales to co-operative societies 
 QT organizations, rather than to the governments. In each case, 
 however, the Commission has, either directly or through such co- 
 operative society, taken government obligations in payment for the 
 stocks. These bonds all bear interest at the rate of 5 per cent per 
 annum, payable semi-annually, and they mature in from one to six 
 years after date. 
 
 In the matter of fixing the prices and terms of purchase, the Com- 
 mission occupied a position of supreme advantage over the buyers, 
 for in many cas^s these peoples w^ere in such a position that they had 
 to buy from us or see their people go hungry and cold. Prices and 
 conditions were carefullv studied, however, by the Commission and 
 
80 UNITED STATES LIQUIDATION COMMISSION. 
 
 every effort was made to treat these purchasers, as well as the United 
 States, with absolute fairness. The foodstuffs were sold f. o. b. our 
 warehouses in France for cost to the American Expeditionary Forces, 
 including allowances for transportation and handling. The salvaged 
 shoes, blankets, and clothing, all " renovated, overhauled, and classi- 
 fied," were sold on the basis of cost, less a percentage for deteriora- 
 tion according to class. The medicines, machinery, tools, and trans- 
 port materials were sold on the basis of cost in France, less a dis- 
 count for deterioration through use or otherwise. On the whole, the 
 prices were rather higher than could have been procured at whole- 
 sale from any other purchasers. They were believed, however, to be 
 fair and just when considered in the light of the quality of the se- 
 curities and other circumstances associated with the transactions. 
 
 The sales which have been made to or for the use of these so- 
 called " liberated nations " ^^ are as follows : 
 
 Poland $59, 365, 111. 97 
 
 Kingdom of Serbs, Croats, and Slovenes 20, 464, 191. 25 
 
 Roumania 13, 012, 689. 00 
 
 Russian Government 428, 299. 46 
 
 Czechoslovakia 19, 098, 874. 27 
 
 Revalis (Esthonia) 12,262,818.99 
 
 Vilnis (Lithuania) 4, 414, 861. 39 
 
 Central Union Konsums (Latvia) 2,556,952.84 
 
 Ukrailian (Ukrainia) S, 500, 222. 67 
 
 Total 140, 104, 021. 84 
 
 GIFT TO RED CROSS. 
 
 Pursuant to an act of Congress, passed early in July, 1919, author- 
 izing the Secretary of War — 
 
 to place at the jillsposal of the American Red Cross such medical and surgical 
 supplies and supplementary and dietary foodstuffs used in the treatment of the 
 sick and injured, but which are not now essential to the needs of the American 
 Expeditionary Forces or needed for use in the military hospitals in the United 
 States or as military or hospital stores for the Army of the United States, to be 
 used by said American Red Cross as it shall determine to relieve and supply the 
 pressing needs of the peoples of the countries involved in the late war, 
 
 the Secretary of War, acting through the Commission, placed at the 
 disposal of the American R^ed Cross, Avithout cost to it, medical, 
 surgical, and hospital supplies and equipment and dietary foodstuffs 
 of the value of $9,964,851.16, which were expressly reserved from the 
 stocks sold to France and actually delivered to the Red Cross repre- 
 sentatives. In addition to this, the French Government has, in the 
 
 ^3 See Appendix XII for a list of the liberated nations, with corresponding commer- 
 cial organizations for each, with which the Commission has dealt. 
 
UNITED STATES LIQUIDATION COMMISSION. 31 
 
 bulk sale contract of Auoust 1, 1919, assumed the obligation to re- 
 sell, on the basis of cost to it, any further medical or suro:ical sup- 
 plies and dietary foodstuffs which the American Red Cross may need 
 for use in Europe. 
 
 COMMERCIAL SALES OF PROPERTY LOCATED IN FRANCE. 
 
 Prior to the consummation of the bulk sale to France, diligent ef- 
 forts were made by the Commission to find purchasers, for cash or 
 its equivalent, for surplus stocks located in France ; but on account of 
 the character and condition of these stocks, the condition of exchange, 
 and the difficulty of procuring transportation by railroad or water, 
 it was impossible to dispose of large quantities of these stocks to 
 advantage. 
 
 The first important sale of this kind which the Commission 
 authorized Avas made to the American Relief Administration, of 
 which Herbert Hoover was director. These stocks were destined 
 for Central Europe and the Near East, and consisted of prime neces- 
 sities — cereals, fats, condensed milk, a small quantity of medical sup- 
 plies, and a few motor trucks needed for distributing them. The 
 sales aggregated $15,959,455.15, and the terms were cash. The prices 
 were calculated on a basis which would justify the Relief Administra- 
 tion in taking these supplies in France in preference to having them 
 purchased in the United States and shipped over. In this way 
 shipping Avas economized, and a considerable portion of our surplus 
 foodstuffs was promptly disposed of for cash and through a channel 
 w^hich would use it to satisfy actual hunger and relieve dire distress. 
 
 When the Commission arrived in Europe it found that our Army 
 had 181,909 surplus horses and mules. The demand for horses was 
 very great, and the prices were good, though the demand for mules 
 was more limited. Many of these animals were in poor condition, and 
 the Army was rapidly declaring them, surplus. As the estimated 
 average cost of maintaining a horse or mule in France is $2 per day, 
 and even more in Germany, the problem of their disposition required 
 prompt attention. The Commission decided to sell them for cash 
 only, and, so far as possible, at such places and at such times as they 
 were found surplus. They were disposed of with reasonable prompt- 
 ness through auction sales, sales to the French Government, to Po- 
 land, to Czechoslovakia, and to others, all at fair prices. The French 
 minister of reconstruction purchased several thousands, which he in 
 turn sold on credit in the devastated regions of France, thus using 
 them to furnish prompt aid in the problem of getting the soil back 
 under cultivation and of starting the wheels of industry. More 
 than 5,000 animals were sold to Poland. The total amount realized 
 
32 UNITED STATES LIQUIDATION COMMISSION. 
 
 on the sale of all American Expeditionary Forces, animals was 
 $35,133,065.02, the number being 181,909.^* 
 
 The problem of sales in Spain consumed not a little of the Com- 
 mission's attention. It had two phases. During the war our Army 
 had agents in Spain who were purchasing supplies in considerable 
 quantities, and upon the signing of the armistice there was a limited 
 amount of these materials in Spain to be disposed of, as well as con- 
 tracts to cancel and adjust. Further, during the war, when the gold 
 embargo was in force, the United States had caused to be borrowed 
 in Spain, in order to avoid paying a discount on dollars, some 155,- 
 000,000 pesetas and the Commission made a determined effort to sell 
 there for cash a sufficient quantity of surplus stock to pay and retire 
 this indebtedness. 
 
 The stocks found in Spain at the close of the war were small. 
 They consisted principally of horse blankets, cotton duck, vinegar, 
 ofl:ce supplies, iron buckets, salt bags, cork shavings, etc. All of 
 these were sold for cash, the total aggregating $823,772.54. In addi- 
 tion we had some lumber in Portugal which was sold for $38,060.59. 
 
 In an effort to make large sales in Spain, special agents were sent 
 there by the Commission to develop markets and many hours were 
 spent in conference in Paris with prospective Spanish purchasers. 
 But the Commission was unable to induce any responsible Spanish 
 concern to purchase any of the American stocks in France, except 
 on condition that the Commission would cause deliveries to be made 
 either at French ports or on the Spanish frontier. This was because 
 of the great difficulty encountered in transporting stocks over French 
 railroads. Finally, in order to make an advantageous sale, the Com- 
 mission assumed this burden and, through the Army, loaded the cars 
 at our depots and transported them to the ports or to the Spanish 
 border, where deliveries were consummated. Endless annoyances 
 were encountered in effecting these deliveries and there were many 
 delays. By the time the bulk sale was concluded and the Spanish 
 sales discontinued, stocks aggregating in value $4,466,519.77 had 
 been sold there, but deliveries could not be finished until a long time 
 afterwards. They consisted principally of tobacco and engineering 
 and quartermaster supplies. 
 
 The Commission sold also to the Spanish Government 10,000 tons 
 of surplus Irish potatoes which the Army had bought from Gr©at 
 Britain. The price was 1,616,147 pesetas, which amount has been 
 paid in full. 
 
 Early in 1917, before the arrival in France of sufficient motor 
 transportation from America, the American Expeditionary Forces 
 
 " See Appendix XIII for chart showing animals sold, with their purchasers and 
 prices. 
 
UNITED STATES LIQUIDATION COMMISSION. 33 
 
 found it necessary to purchase motor transportation from Great 
 Britain. All of these cars of English manufacture which the Com- 
 mission found in France were sold to an English syndicate for 
 $1,202,566.46. These cars, generally speaking, had been longer in 
 use and were more exhausted by wear and tear than the other motor 
 transport in France. 
 
 In addition to the sales noted above, numerous others, some small 
 and some large, were made for cash from stocks of various kinds 
 located in France. It should be noted in particular that, in addition 
 to the bulk sale, stocks aggregating $87,780,942.76 and 232,565,047.51 
 francs were sold to the French Government.^^ 
 
 BELGIAN SALES AND GENERAL SETTLEMENT. 
 
 The Commission made sales to Belgium amounting in all to ap- 
 proximately $29,000,000. Belgium had claims against the American 
 Army: (1) Arising out of leases of Belgian locomotives to the 
 American Expeditionary Forces during the war; (2) for transpor- 
 tation of troops and supplies, both by rail and on the Rhine; (3) 
 for port charges at Antwerp. These claims were examined and an 
 account was stated showing approximately $2,000,000 in favor of 
 Belgium. Instead of paying this amount, it was set off against the 
 amount due the United States on all sales to Belgium, and that 
 country agreed to execute and deliver to the United States notes or 
 bonds for the balance, amounting to $27,162,720.95. These bonds 
 mature three years after date and bear interest at the rate of 5 per 
 cent per annum, payable semi-annually. 
 
 These agreements are contained in a contract of general settlement 
 entered into between the Commission and the Belgian Government 
 on November 7, 1919, by the terms of which — 
 
 Belgium releases the United States from any and all debts, claims, and lia- 
 bilities, whether in contract or tort, which Belgium now has or may have by 
 reason of any act done or engagement entered into on or before the 31st day 
 of October, 1919, for materials or services furnished to or damages done by 
 the American forces in Europe, except as hereinafter stated. 
 
 Belgium further agrees — 
 to save the United States harmless from any and all claims of whatever nature 
 against the United States or members of its military or naval forces, on the 
 part of any railroad company within the limits of the Kingdom of Belgium, 
 whether such railway company is the property of the Belgian Government or 
 not." 
 
 16 See Appendix XIV for three charts : Chart I shows the amounts purchased by 
 each country by services ; Chart II, the amounts by categories ; Chart III, the location 
 in Europe of this material when sold. 
 
 18 See Appendix XV for copy of contract of general settlement between the United 
 States of America, acting through the chairman of the Liquidation Commission, and the 
 Kingdom of Belgium, acting through the premier and minisster of finance ; also for a state- 
 ment of the account upon which this general settlement was based. 
 
 183176—20 3 
 
34 UNITED STATES LIQUIDATION COMMISSION. 
 
 In addition to the stocks sold to the Belgian Government, sales of 
 goods located at Antwerp were made to other nations, individuals, 
 firms, associations, and corporations, in the amount of $3,845,032.45. 
 Of these stocks, motor transport brought $268,339.97. A sale amount- 
 ing to $1,852,326.99, consisting principally of clothing, was made 
 to Czechoslovakia on the basis of 75 per cent of cost laid down at 
 Antwerp (i. e., cost plus transportation and handling). The bal- 
 ance of the stocks at Antwerp, consisting of broken and irregular 
 groups of materials, was disposed of in a bulk sale to Poland for 
 $976,583.22, the price being calculated on the basis of 70 per cent of 
 cost plus transportation and handling. The price received for all 
 surpluses located at Antwerp, and the Hook von Holland, including 
 sales made to Belgium, averaged a little under 74 per cent of the 
 cost of the goods laid down in Europe. 
 
 SALES IN GERMANY. 
 
 When the Army of Occupation took its position on the Rhine 
 large quantities of Army stores and equipment were moved there, 
 principally from France and to some extent from the United States. 
 As this Army was being withdrawn from time to time and returned 
 to the United States, stocks on the Rhine were becoming surplus and 
 the duty devolved upon the Commission to make disposition of 
 them. The suggestion that they be returned to France and placed 
 in American Expeditionary Forces' depots there for storage and 
 disposition with the other stocks in France was rejected, both be- 
 cause of the difficulty of transportation and the difficulty of dispos- 
 ing of the stocks already in France. 
 
 One of the first problems which arose in Germany was that of the 
 disposition of surplus horses and mules. There was a serious short- 
 age of forage, and keeping the animals over a long time while a 
 market was being found was very expensive. Prompt action was 
 taken by the Commission. Many of the animals were sold to indi- 
 viduals and firms through auction sales, competitive bids, and other- 
 wise. A large number of them went to the Minister of Reconstruc- 
 tion of France, some went to Poland, and a few to Czechoslovakia. 
 
 In order to direct the disposition of the stocks in Germany more 
 satisfactorily, the Commission established a branch office at Coblenz 
 about the 1st of July, and put it in charge of J. G. Adams, as 
 special commissioner. Mr. Adams had previously been serving as 
 executive secretary of the Commission. Negotiations were taken up 
 forthwith with several of the strongest German financial institutions 
 having connections in the United States with a view to the formation 
 of groups or syndicates with facilities for making purchases in 
 dollars, or on dollar credits. Consultations were held with such 
 
UNITED STATES LIQUIDATION COMMISSION. 35 
 
 institutions as Warburg & Co. of Hamburg; Speyer and Ellison of 
 Frankfort; Oppenheim & Son of Cologne; the Deutches Bank of 
 Berlin, and others ; while at the same time the Commission, through 
 the War Department at home, was trying to interest the American 
 correspondents of these houses in the transactions. Negotiations 
 were also opened with numerous American, French, English, Dutch, 
 Belgian, and Scandinavian concerns. All of these people were inter- 
 ested in the stocks which we had for sale. Many of them sent repre- 
 sentatives to inspect them; but without exception, after days and 
 weeks of conferences and discussions, they expressed the conclusion 
 that under the conditions as they existed at that time, particularly in 
 view of the fluctuating rates of exchange, the business was quite 
 impossible. 
 
 On August 10, after this effort to sell on a dollar basis was believed 
 to be a failure, it was decided to send out a notice to a large number 
 of prospective purchasers offering the goods on more liberal terms. 
 The notice offered the stocks as a whole, or in large blocks, to be paid 
 for in American dollars, Swiss francs, Dutch guilders, British 
 pounds, French francs, or German marks, at the several current rates 
 of exchange, preference being given to bids based on currencies in the 
 order named. Notwithstanding the fact that every effort was made to 
 encourage bids under this offer, no satisfactory bid was received. 
 There were several instances of speculators who made inadequate 
 offers on small lots of the most desirable stocks, the sale of which 
 would have prejudiced the sale of the stocks as a whole. All bids were 
 rejected. 
 
 The exchange situation in the Rhine country proved to be an almost 
 insurmountable obstacle in the way of a reasonably satisfactory dis- 
 position of these stocks, which were carried on our inventories in 
 terms of dollars at war-time cost plus 20 per cent for transportation 
 and handling, save motor transport, to which was added 45 per cent 
 of first cost for transportation and handling. 
 
 A great part of the stocks were of commodities produced in Ger- 
 many which could be purchased on the Rhine in the open market at 
 retail, at prices considerably less than those stated in our inventories. 
 The purchasing power of the mark had decreased, perhaps not more 
 than 200 per cent, while its exchange value on the American dollar 
 had decreased more than 500 per cent. The difficulties encountered 
 in selling American goods in Germany under such conditions are 
 quite obvious. 
 
 An effort was made to organize a syndicate which might buy 
 these stocks in exchange for certain German products which are 
 required or can be utilized to advantage in the United States; pot- 
 ash for example. It was found, however, that the Germans were 
 
36 UNITED STATES LIQUIDATION COMMISSION. 
 
 fully aware of the importance to them of disposing of such of their 
 products as were marketable in the United States for dollars only, 
 for it is only by selling for dollars that they can strengthen their 
 exchange with us. 
 
 While these efforts were being made to sell the stocks as a whole, 
 there were certain smaller sales which had to be made by way of 
 salvage. The Army of Occupation had taken with it a large supply 
 of Signal Corps equipment, both for its own use and for equipping 
 the proposed Galician expedition. Such of this stock as was de- 
 signed for field use and has small commercial value was returned to 
 the United States for the use of the War Department. What re- 
 mained, being largely unserviceable, was sold for 1,200,000 marks. 
 
 The surplus tobacco was deteriorating and was not an important 
 factor for fostering a bulk sale, so it was sold separately. It brought 
 cost plus 6 per cent. The candy and confectionery was deteriorating. 
 We had a surplus which was carried on the inventory at $1,200,000. 
 It was sold early in August at 87^ per cent of the inventory valua- 
 tion, which was more than first cost to the United States. 
 
 We had a stock of so-called German armistice trucks. These had 
 been allotted to the American Army under the terms of the armistice. 
 They had been built in Germany under war conditions, were equipped 
 with live axles, chain drives, and steel tires. They had deteriorated 
 considerably through use and through standing* in the open for more 
 than eight months, and they needed considerable repair before they 
 would be valuable for commercial uses. They were sold in block 
 for 13,000,000 marks. 
 
 Finally, in October, after numerous failures in other directions, 
 the Commission was successful in interesting a strong English syndi- 
 cate in the purchase of the surplus used motor equipment in Ger- 
 many. This equipment represented a high percentage in cost value 
 of all our surplus stocks in Germany. It was rapidly deteriorating 
 from non-use and exposure to the elements and had to be handled 
 promptly or it would soon have become practically useless. After 
 a long series of negotiations this syndicate has purchased and taken 
 possession of all of the American surplus motor transport on the 
 Rhine on substantially the following basis : 
 
 1. The estimated purchase price is fixed at £3,250,000, of which 
 £325,000 has been paid in cash. 
 
 2. This estimated purchase price is subject to increase or decrease 
 on check of the equipment and material. 
 
 3. If any controversy as to quantity or classification should arise 
 in making such check, such controversy shall be settled by the Com- 
 mission's present representative in Germany, Lieut. Col. T. H. Krutt- 
 schnitt, acting for America, and by Lieut. Col. G. W. Parkinson or 
 
UNITED STATES LIQUIDATION COMMISSION. 37 
 
 Sir Percival Perry, acting for the purchasers, and in the event of 
 their disagreement the decision of Lieut. Col. Kruttschnitt shall be 
 final. 
 
 4. The balance of the purchase price shall be paid in three equal 
 installments, the first maturing July 1, 1920, the second December 1, 
 1920, and the third April 1, 1921, together with interest on the entire 
 amount at the rate of 5 per cent per annum from April 1, 1920, 
 interest payable semi-annually. 
 
 5. The United States, through its general sales agent in Germany, 
 Lieut. Col. Kruttschnitt, or his successor, remains in constructive 
 possession of and continues supervision over all of the property pur- 
 chased, retaining a lien upon it for the purchase price until the same 
 is paid in full. None of these stocks can be withdrawn from their 
 present locations and sold by the purchasers without the consent of 
 Col. Kruttschnitt and the payment to America of an amount equal 
 to the full purchase price of the property so withdrawn. 
 
 6. There has been deposited in the Guaranty Trust Co. of New 
 York, Paris branch, £250,000 to the credit of T. H. Kruttschnitt, 
 trustee, and subject to his and the purchasers' joint check. This fund 
 is to be applied to putting said motor equipment in condition for 
 use and sale. It is stipulated that the purchasers shall, oji the de- 
 mand of Col. Kruttschnitt or his successor, make additional deposits 
 from time to time to maintain this fund, so that it shall never be 
 substantially less than £250,000. It is further stipulated that, if at 
 any time Col. Kruttschnitt or his successor in office or the War 
 Department of the United States shall not be satisfied with the 
 progress made by the purchasers in conditioning and marketing this 
 motor transport, the entire balance of this deposit may be withdrawn 
 and applied toward the payment of the purchase price. 
 
 7. The contract is to be construed according to the laws in effect 
 at Washington, D. C, and the purchasers irrevocably designate the 
 British Consul General at New York as their agent, on whom service 
 may be had in any suit Avhich may be brought by the United States 
 to enforce the terms of the contract.^^ 
 
 It is believed that this contract amply protects and secures the 
 United States, and that, all things considered, it is a most advan- 
 tageous one from our point of view. 
 
 The disposition of the motor transport on the Rhine left us with 
 depleted surplus stocks, the sale of which, excepting the subsistence 
 and clothing, was difficult. After prolonged conferences with rep- 
 resentatives of Poland, the Commission effected a sale to the Polish 
 Relief & Supply Corporation, by the terms of which all of the re- 
 
 "See Appendix XVI for copy of (1) the contract of sale, dated Oct. 1, 1919, and (2) 
 supplement to contract of sale, dated Dec. 3, 1919. 
 
38 UNITED STATES LIQUIDATION COMMISSION. 
 
 maining surplus stocks on the Rhine were sold in bulk on a basis of 
 70 per cent of their inventoried values. These stocks consisted prin- 
 cipally of subsistence, clothing, ordnance, medical supplies, and a 
 great variety of miscellaneous equipment. Deliveries under this sale 
 have been completed and the stocks all moved out of Germany by 
 Poland. The total bill was $5,536,867.71. 
 
 SALES IN ENGLAND. 
 
 Durinfif the war. Great Britain had been made a United States 
 military base, called " Base Section No. 3," for the purpose of (a) 
 bringing troops through, (h) purchasing materials, (c) maintaining 
 hospitals and rest camps, and (d) training aviators and assembling 
 machines. 
 
 This program involved our owning a large amount of property in 
 England. We could not take title to the land under English law, 
 and when we took possession it had to be under a contract to re- 
 store the land to its original condition at the close of the war. 
 Prior to the armistice the United States had built, or taken over 
 from the British, numerous and extensive installations in the form 
 of (a) aviation plants and airdromes, (h) hospitals, (c) rest camps 
 and depots.^^ This property had to be sold out as it stood, or, if 
 salvaged, the ground had to be restored to its original condition. 
 
 Besides the buildings and installations constructed by the United 
 States, many more buildings were rented by our forces either on 
 ordinary leases or under requisition proceedings carried out on our 
 behalf by the appropriate British Government department. 
 
 Further, we had war materials — ordnance, quartermaster, engi- 
 neering, medical, motor transport — of every description, of which 
 we were in process of taking delivery at the time of the armistice. 
 A large percentage of these stocks had been purchased for us by 
 various departments of the British Government, and was of course 
 British made goods. Shortly after the armistice, the British offered 
 to assist us in the sale of this surplus property through their Dis- 
 posal Board, in a manner analogous to the assistance which they 
 had given us in its purchase. It was found, however, that while the 
 British Disposal Board got good prices, it was rather slow in selling 
 stocks for us, and we have therefore taken little advantage of the 
 offer. 
 
 As soon as our sales in England began, the British Government 
 raised the question of customs duties on goods brought in from the* 
 United States. These duties were paid on some of the earlier sales, 
 
 18 See Appendix XVII for a catalogue of all Installations, or property attached to 
 the realty, which the United States has owned in Great Britain during or since the 
 war, showing the number of buildings, size, approximate cost, and disposition. 
 
UNITED STATES LIQUIDATION COMMISSION. 39 
 
 Dut later when the French Government raised the same question 
 against the British for the sale of goods in France, and the general 
 question was under discussion in Paris, the British agreed to with- 
 draw their claim for duties so far as it referred to American goods. 
 They did, however, insist that our surpluses should not be thrown 
 indiscriminately on their markets so as to disturb trade conditions. 
 As this demand seemed only reasonable, and would be in accord 
 vrith our precedent in the Philippines at the close of the Spanish 
 War, we agreed to sell only after obtaining permission of the ap- 
 propriate department of their government. This permission they 
 have always been very generous in granting. 
 
 The disposition of buildings and other structures has been the 
 most serious problem. Each plant, hospital, and camp has had to 
 be worked out separately. The receipts from this class of property 
 liave naturally been very small in proportion to the original costs, 
 because our obligation to restore the site would in most cases have 
 cost more than the salvage value of the buildings removed. We have 
 thus been in a very awkward position as a party to a bargain. The 
 British Government, however, has always exhibited a most cordial 
 desire to aid us in any way possible in these dispositions, even con- 
 senting to take title to land in our behalf whenever that action would 
 help us to reach a better settlement. 
 
 The personal property has been disposed of in several ways. The 
 bulk of it was sold out in relatively small quantities, by private sale, 
 by auction, by sealed bids, through agents, or through the British Dis- 
 posal Board, to British nationals principally. Some of it has gone to 
 other buyers — to the Commission for Relief of Belgium and Northern 
 France, and to Poland." A considerable quantity of material, es- 
 pecially artillery, aviation, and chemical-warfare equipment, has 
 been shipped home, on the theory that these articles would be useful 
 to the Army for training, educational, and other purposes. 
 
 During the war the United States built a submarine cable for war 
 uses between Cuckmere, England, and Cape d'Antifer, France. Un- 
 der authorization of the Commission, this cable was sold to England 
 and France as joint purchasers, for £30,000, paid to us by England. 
 The conditions of the contract are that the purchasers shall jointly 
 own and operate the cable, and that at any time, upon request, they 
 «hall lease to the United States this or a similar cross-channel cable. 
 
 18 See Appendix XIV, Chart III, column marked " England." This shows the total 
 receipts from all sales made in Great Britain, the amounts being shown by " Categories " 
 of property. 
 
40 UNITED STATES LIQUIDATION COMMISSION. 
 
 SUMMARY OF SALES. 
 
 For the purpose of telling in a brief and graphic way the long story 
 of all sales of surplus war supplies in Europe, other than the bulk 
 sale to France for $400,000,000, three charts have been prepared^ 
 expressed in terms of selling price.^^ 
 
 Chart I shows the totals in terms of selling value of all sales made 
 to each purchasing nation and to private firms, arranged according 
 to the respective services of the American Expeditionary Forces in 
 whose possession the stocks were held when sold. 
 
 Chart II shows the purchasers in the same way as Chart I but 
 the materials are listed according to the 18 categories ^^ by which 
 all American Expeditionary Forces' stocks have been classified, both 
 for the purpose of purchase and of sale in Europe. 
 
 Chart III also shows the stocks by categories, but, in place of the 
 purchasing nations across the top there is given the countries in 
 which the stocks were located at the time of their sale. 
 
 These charts show a total of sales aggregating $377,905,193.23 and 
 233,254,054.87 francs. Converting these francs into dollars at the 
 normal rate of exchange, and adding to these sums the $400,000,000 re- 
 ceived from France for the bulk sale, we have a grand total of 
 $822,923,225.82 received for all sales of War Department materials 
 made in Europe. 
 
 In payment for these stocks, government bonds aggregating 
 $564,233,302.87 have been taken from France, Belgium, and eight 
 countries of Central Europe and the Near East. The French bonds 
 were for $400,000,000. Sales amounting to $108,570,596.63 and 
 689,007.36 francs were made for cash on delivery, and short-term 
 credits were taken for the rest. The appropriate Army services have 
 been taking care of the collections on these short-term credits and 
 nearly all of them have been liquidated at this time. 
 
 20 See Appendix XIV for Charts I, II, and III, summarizing In different ways all 
 sales of war surpluses in Europe, except the bulk sale to France. 
 
 21 See Appendix VI for a list of the 18 categories with the sub-headings under each. 
 
III. SETTLEMENT OF CLAIMS. 
 
 When hostilities ceased, November 11, 1918, the United States had 
 2,056,123 men in France, and plans to send over 2,000,000 more men 
 were far advanced. The country was investing in the war in terms 
 of billions of dollars. Practically every industry in America was 
 doing something to support the Army. The War Department itself 
 was operating vast factories. It was buying vaster stores of sup- 
 plies. In laying and developing plans for all of these activities, 
 available shipping — the limiting factor — had to be taken into ac- 
 count, as well as the location of raw materials and the equipment 
 and factory facilities for producing war supplies, both at home and 
 in Europe. Consequently, America bought from Europe when and 
 what Europe could produce most effectively and expeditiously, and 
 she sold to Europe when and what she could produce most speedily 
 and effectively. 
 
 Thus it came about that many buying programs and arrangements 
 were in full force and vigor when the armistice was signed; some 
 in the form of technical contracts, some as pools, and some the result 
 of oral understandings or plans worked out by the Allied Purchasing 
 Commission. All of these programs, whatever their form, had to be 
 suddenly broken off. The expense of stopping this vast production 
 at the end of the war was, in many cases, very great. It was clear 
 that the Allied and Associated Nations ought to share fully and 
 equitably this expense, in accordance with the share of work which 
 each had undertaken in behalf of the other, but in most instances, 
 the facts were complicated, voluminous, and somewhat obscure, 
 while a proper basis for the apportionment of such expenses was 
 very difficult to work out. 
 
 Nearly a month prior to the creation of this Commission, the Secre- 
 tary of War appointed Chester W. Cuthell as his Special Repre- 
 sentative, and clothed him with full power to organize a staff of 
 lawyers and accountants for the purpose of developing the facts and 
 concluding agreements in regard to " the relations of the War Depart- 
 
 43 
 
42 UNITED STATES LIQUIDATION COMMISSION. 
 
 ment with the several Governments of our European Allies growing 
 out of orders, purchases, and engagements given or arising in the 
 procurement of munitions, supplies, and services in thh country by- 
 such European Allies." Mr. Cuthell and his staff had their work 
 well under way when this Commission was established, and the mem- 
 bers of the Commission conferred with him freely and fully and took 
 measures for co-ordinating his work with theirs prior to their leaving 
 America for Europe. 
 
 The activities of Mr. Cuthell and his staff have always co-ordinated 
 with those of the Commission, and through the efforts of each to help 
 the other, the effectiveness of both organizations has been materially 
 increased. 
 
 All claims between the War Department and the Governments of 
 any of our European Allies growing out of the war and arising in 
 America were fully developed and presented by Mr. Cuthell and the 
 members of his staff, either in America or in Europe. In this work, 
 Mr. Cuthell had the assistance and co-operation of the Commission. 
 The claims which he established against the French Government were 
 made a part of the final accounting by this Commission in its " Gen- 
 eral Settlement" with that government. All claims of this nature 
 between the War Department and our European Allies, or their 
 nationals, which arose in Europe, were developed, studied, and dis- 
 posed of by the Commission. Mr. Cuthell and his assistants have 
 acted as the Commission's representatives in Washington, and as 
 such have rendered invaluable services. 
 
 The following pages will present a brief record of the more im- 
 portant settlements which the Commission made in Europe : 
 
 SETTLEMENTS WITH GREAT BRITAIN. 
 
 On March 10 and 11, 1919, the chairman of the Commission and 
 Mr. Stettinius held several conferences in London with representa- 
 tives of the British war office and the British ministry of munitions, 
 at which the more important claims of Great Britain against America 
 were considered. Particular attention was given to the claim grow- 
 ing out of the cancellation by America of the contract, in terms of 
 which Great Britain had agreed to produce and furnish certain ar- 
 tillery and artillery ammunition. Mr. Stettinius had already held a 
 series of conferences with the British on this and other matters. 
 
 At these March conferences certain fundamental principles were 
 recognized by both parties as standards by which mutual claims 
 should be measured. The chairman had, before leaving Washington, 
 discussed these principles Avith Mr. Cuthell. They may be summar- 
 ized in general terms as follows : 
 
UNITED STATES LIQUIDATION COMMISSION. 43 
 
 1. Neither government shall, in connection with any war contract 
 or transaction, make a profit out of the other, and this principle 
 shall be applied regardless of prices, tentative or fixed, named in 
 contracts. Actual cost shall control in fixing prices between the 
 two governments, and there shall be neither profit nor loss as between 
 them. 
 
 2. An agreement, whether written or oral, regular or irregular, if 
 clearly established between the authorized representatives of the re- 
 spective governments, shall be binding on both. 
 
 3. In the absence of a definite agreement, where it is clearly es- 
 tablished that one government, at the request or on the suggestion 
 and with the advice and consent of the other, incurred obligations 
 for the common benefit of both, the expense should be shared by 
 €ach party in proportion to its benefits, past or prospective. 
 
 In a letter written by the chairman to the British representa- 
 tives, confirming the London interview, the following language was 
 used : 
 
 It is understood that the broad, general principles which have been recog- 
 nized by both governments in reaching the adjustments above outlined shall 
 obtain in the settlement of claims of like nature which will be presented by the 
 United States Government to the British Government for payment, including 
 claims growing out of the creation of facilities for the manufacture of, as well 
 as expenditures made for the production of, Liberty motors, nitrocellulose 
 powder, cotton linters, etc. 
 
 This statement was made by way of assistance to Mr. Cuthell, who 
 was engaged at that time in Washington on the preparation of the 
 claims against England referred to. 
 
 The fact that these simple principles were kept constantly in mind 
 in all of our dealings with the representatives of Grreat Britain has 
 enabled both parties to reach sound solutions of many difficult prob- 
 lems ; and, on the whole, it is believed that the cordial relations be- 
 tween the respective governments and peoples have been cemented 
 rather than strained by the negotiations which have taken place. 
 
 BRITISH ARTILLERY AND AMMUNITION SETTLEMENT. 
 
 From time to time during the spring and summer of 1918 America 
 placed orders with Great Britain to manufacture or cause to be 
 manufactured and delivered to America certain quantities of artil- 
 lery and artillery ammunition. All such agreements, some of which 
 were vague and indefinite and might have been so construed as to 
 have given them far-reaching importance, were merged and super- 
 seded by a certain agreement, dated October 19, 1918, entered into 
 
44 UNITED STATES LIQUIDATION COMMISSION. 
 
 between Mr. Stettinius, Special Representative of the Secretary of 
 War, and Mr. Churchill, British Minister of Munitions.^^ 
 
 Immediately after the armistice, Mr. Stettinius gave notice of the 
 cancellation of the contract and at once began negotiations with a 
 view^ to reaching a fair and equitable settlement for losses occasioned 
 thereby. The negotiations which were merged in the agreement of 
 October 19, 1918, covered a considerable period and it was clear that 
 the British manufacturing operations had been maintained, and that 
 she had made plans for increased production, in order to meet 
 America's demands. A large part of the material contracted for 
 had already been produced and a majority of the remainder was in 
 process. Mr. Stettinius conducted his negotiations on the assump- 
 tion that, as a large part of these materials were already in being and 
 were in excess of the British requirements, it would be to America's 
 interest to accept completed guns, equipment, and ammunition rather 
 than to pay large indemnities and receive nothing in return. 
 
 After consulting with our ordnance officials in London, Paris, and 
 Washington with a view to determining Avhat ordnance equipment 
 could be used to the best advantage by our War Department, Mr. 
 Stettinius asked the British for a revision and adjustment of the 
 contract, in terms of which the number of guns of small caliber to be 
 taken by us were to be reduced, and in lieu of this, the number of 
 large-caliber guns slightly increased. A tentative understanding in 
 general terms had been reached between Mr. Stettinius and the 
 British ministry when the chairman of the Commission took up the 
 case. . At the conferences held in March, the chairman reached a 
 tentative agreement which was presented to and approved by the 
 full Commission in Paris a few days later. This agreement was con- 
 firmed by the chairman's letter to the British representative, dated 
 March 21, 1919, setting forth the number and types of artillery units 
 and ammunition, the delivery of which America agreed to accept 
 and for which it agreed to pay on the basis of cost to Great Britain, 
 in lieu of the payment of cancellation damages. It was further 
 agreed that deliveries might begin at once in order to relieve the con- 
 gestion at British arsenals and manufacturing plants and in order 
 to utilize available shipping, and that a final contract would be pre- 
 pared and executed as soon as the definite unit costs could be pro- 
 cured by the British and verified by the ordnance representatives of 
 
 ^The entire course of those negotiations is very carefully recorded in two type- 
 written volumes in the Commission's files entitled, respectively : (1) " R6sum6 of negotia- 
 tions Conducted by Mr. Edward R. Stettinius with the French and British Governments " ; 
 and (2) " R6sum6 of negotiations conducted by the United States Liquidation Commis- 
 sion — War Department with the British Government for the settlement of obligations of 
 the United States consequent upon the purchase of artillery and artillery ammunition, 
 Paris, Aug. 28, 1910." 
 
UNITED STATES LIQUIDATION COMMISSION. 
 
 45 
 
 the American Expeditionary Forces. The formal contract was 
 signed August 9, 1919.-^ 
 
 Under the terms of this contract, Great Britain has delivered, or 
 will deliver, to the United States the following guns, gun equipment, 
 and artillery ammunition : 
 
 GUN EQUIPMENT. 
 
 Nature. 
 
 Cost per unit. 
 
 Number 
 of units. 
 
 Total 
 value. 
 
 8-inch howitzer, Mark VII 
 
 8-inch howitzer, Mark VI 
 
 6-inch gun, Mark XIX 
 
 6-inch gun bodies complete with breech mechanisms 
 60-pounder gun 
 
 £ 
 6,295 
 6,390 
 6,374 
 2,060 
 5,210 
 
 84 
 64 
 
 100 
 50 
 
 200 
 
 £528,780 
 408,960 
 637,400 
 103,000 
 
 1,042,000 
 
 2,720.140 
 
 GUN AMMUNITION. 
 
 
 £. s. d. 
 
 13 10 
 9 15 
 
 10 5 
 6 
 6 3 4 
 5 5 
 5 10 
 
 1 170,000 
 125,000 
 125,000 
 2 33,500 
 2 33,500 
 166,500 
 166,500 
 
 £2,295,000 
 243, 750 
 
 6-inch gun high explosive . . . 
 
 Shrapnel 
 
 256,250 
 
 60-pounder high explosive .' 
 
 201,000 
 
 Shrapnel . . 
 
 206,583 
 349, 125 
 
 High explosive •. 
 
 Shrapnel 
 
 365, 750 
 
 
 
 Total 
 
 3,917,458 
 
 
 
 
 
 Grand total 
 
 6 637,598 
 
 
 
 
 
 1 Compt. 2 Com. rds. 
 
 America pays no indemnities for cancellation of the original artil- 
 lery and artillery ammunition contract of October 19, 1918, but pays 
 actual cost for the guns and ammunition purchased under the terms 
 of this settlement of August 9, 1919. The total payment has been 
 finally determined at £6,637,598. When the contract was signed 90 
 per cent of this amount was paid in cash, 5 per cent additional will 
 be paid upon the completion of deliveries of the guns and ammuni- 
 tion, and the remaining 5 per cent upon the completion of deliveries 
 of the spare parts. 
 
 AUSTRALIAN WOOL SETTLEMENT. 
 
 During the war the British Government made contracts with the 
 governments of Australia and New Zealand for large supplies of 
 wool produced by them. This was obviously done with a view to 
 financing and stimulating production when shipping was precarious 
 and when the Allied Governments were in great need of wool. In 
 October, 191T, our War Departmet contracted with the British Gov- 
 ernment for the purchase of 247,000 bales of wool for delivery in 
 
 28 gee Appendix XVIII for copy of (1) the final artillery and artillery ammunition con- 
 tract of settlement with Great Britain, dated Aug. 9, 1919, together with (2) the covering 
 letter written by the Commission's chairman. 
 
46 UNITED STATES LIQUIDATION COMMISSION. 
 
 Australia during the summer of 1918. In the late summer and early 
 fall of 1918 negotiations were opened in London for the purchase 
 by America of additional wool, and on November 7, 1918, a contract 
 was signed in London between Great Britain and America (the lat- 
 ter acting through Messrs. Summers and Patterson, of the War In- 
 dustries Board) whereby Great Britain sold to America 325,000 addi- 
 tional bales of Australian wool. 
 
 The entire amount purchased under the first contract had been 
 shipped to the United States during the war and approximately 
 115,000 bales had been delivered under the second contract before 
 this Commission came into the situation. The Commission found 
 that with the coming of the armistice the War and Navy Depart- 
 ments of the United States had stocks of wool not only in excess of 
 their own needs but in excess of the requirements of our civilian 
 population and in excess of what our markets could advantageously 
 absorb at that time. The chairman of the Commission, therefore, 
 accompanied by Mr. Cuthell, visited London, and in conference with 
 Lord Inverforth, minister of supplies. Sir Arthur Goldfinch, British 
 wool expert, W. T. Layton, and others, urged that America be 
 relieved of its obligation to accept the remaining 210,000 bales under 
 the contract of November 7, 1918. The British representatives were 
 very insistent that America should take and pay for this wool with- 
 out delay. 
 
 Upon studying the contracts and correspondence connected with 
 the whole series of wool transactions, some ambiguities were discov- 
 ered. The British Government had two schedules of prices at which 
 it sold wool — one the "civil issues price," upon which it made a 
 profit to cover the risk it was taking, overhead and other expenses; 
 the other the "military price," designed to represent cost to Great 
 Britain, and at which wool was issued to the British Army. Sir 
 Arthur Goldfinch, who had negotiated the sales in behalf of Great 
 Britain, insisted with great earnestness that the contracts provided 
 in substance that America should pay for all of the wool purchased 
 by it at the civil issues price, and that it was proper that America 
 should so pay because she did not participate with Great Britain in 
 the risk of the purchase of the entire clip. On the other hand, the 
 chairman, without admitting the construction placed on the con- 
 tracts by Great Britain, earnestly contended that even if the British 
 construction of the contract was correct. Great Britain should not 
 insist on the terms of the contract which would result in its making 
 a profit out of America on wool purchased for war purposes, and in 
 furtherance of the cause in which Great Britain and America had 
 joined forces. 
 
 As a result of these conferences and debates, which consumed the 
 better part of two days, and in which Mr. Cuthell and Mr. Elliott 
 
UNITED STATES LIQUIDATION COMMISSION. 47 
 
 (the latter being the wool expert of the Purchase, Storage and Traffic 
 Division of the War Department) participated, an agreement was 
 reached substantially as follows : ^^ 
 
 1. America agreed to pay for all of the wool purchased under the 
 contract of October 1, 1917, on the basis of the civil issues price less 
 2J pence a pound, in accordance with bills already rendered, cover- 
 ing approximately 247,000 bales. 
 
 2. America agreed to pay the bills rendered by Great Britain for 
 storage and insurance in Australia, and for interest on delayed pay- 
 ments under this contract, amounting approximately to $850,000. 
 
 3. America agreed to pay for the 115,000 bales already shipped 
 under the contract of November 7, 1918, on the basis of the civil 
 issues price less 2J pence a pound in accordance with the bills already 
 rendered, plus a payment of 1 penny per pound premium for selec- 
 tion in accordance with the terms of the contract. 
 
 4. Great Britain cancelled without cost to America all obligations 
 on our part to take delivery of that portion of the wool which 
 remained undelivered under the contract of November 7, 1918, 
 amounting to approximately 210,000 bales. 
 
 5. Great Britain waived all claims for interest and storage against 
 America covering the wool undelivered under the contract of Novem- 
 ber 7, 1918. 
 
 This was believed by all interested parties to have been a most 
 advantageous contract from the American point of view. It re- 
 lieved the War Department of an obligation to take a large amount 
 of wool for which it had no use and which American markets were 
 unable to absorb within any reasonable time, and for which America 
 would have been required to pay in cash approximately $38,800,000. 
 
 THE CUTHELL SETTLEMENT. 
 
 As heretofore pointed out, Chester W. Cuthell, special repre- 
 sentative of the Secretary of War, and his staff were responsible for 
 the development and presentation of claims of the War Department 
 against Allied Governments arising in America. How thoroughly 
 and effectively this work was done by Mr. Cuthell and the members of 
 his staff is illustrated by the manner in which they presented, in 
 May, 1919, to the British authorities in London and procured allow- 
 ances of five controverted claims aggregating in amount over 
 $35,000,000. While the chairman of the Commission participated in 
 these conferences and the contract of settlement was ratified and ap- 
 proved by a vote of the Commission, it is nevertheless the privilege, 
 as well as the pleasure, of the Commission's chairman to bear testi- 
 mony to the fact that the full credit for the preparation and estab- 
 
 2* See Appendix XIX for the Australian wool settlement, which is paragraph 6 of the 
 Cuthell settlement with Great Britain, dated May 10, 1919, signed by C. W. Cuthell 
 and Lord Inverforth. 
 
48 UNITED STATES LIQUIDATION COMMISSION. 
 
 lishment of these claims belongs to Mr. Cuthell and the members of 
 his staff. 
 
 After conferences lasting for only a little more than a week, 
 these claims, as presented to Great Britain, were established and 
 allowed as follows i^"^ 
 
 Spruce, fir, and cedar $13,274,550.20 
 
 Wood distillates 2,887,554.00 
 
 Liberty motors 13, 964, 718. 90 
 
 Nitrocellulose powder 4, 690, 500. 00 
 
 Cotton linters 651, 500. 00 
 
 35, 468, 823. 10 
 SETTLEMENT OF TANK AGREEMENTS. 
 
 In the fall of 1917 Great Britain and the United States appointed 
 a joint commission to study the question of the most desirable types 
 of tanks and the question of their production. A conference was 
 held in Paris in December, 1917, the United States being repre- 
 sented by Col. House and others, England by Mr. Churchill and 
 others, and France by M. Loucheur and others. 
 
 At this conference the desirability of producing heavy tanks on 
 a large scale, the parts to be made in the several countries and the 
 assembling plant to be built in France, was discussed at length 
 and agreed to in principle. France, however, because she was 
 already producing light tanks in great quantities, declined to enter 
 into a triangular agreement for financing and forwarding such a 
 proposition, but she agreed to assist the other two nations in acquir- 
 ing a site for the assembling plant and in other ways within her 
 power. She did not ask for any part of the output of the plant at 
 this time. 
 
 On the 22d of January, 1918, an agreement was signed between the 
 United 'States and the British Government, creating an Anglo- 
 American commission, which was charged with building a tank- 
 assembling plant in France with a capacity of 300 tanks per month 
 and capable of being extended to 1,200 per month ; 1,500 tanks to be 
 produced during the year 1918. This assembling plant was built 
 at Chateauroux, Neuvy-Pailloux, and is usually spoken of as the 
 " Chateauroux plant." The component parts of the tanks were to be 
 produced about half in England and half in the United States, Eng- 
 land supplying plates, structural members, track shoes, guns, ammu- 
 nition, etc., and the United States supplying engines complete, motor 
 
 ^ Copy of Cuthell-Inverforth agreement, together with an explanation of the matters 
 involved in this settlement is found in Mr. Cuthell's report to the Secretary of War. dated 
 Sept. 30, 1919, which is quoted in full in the Annual Report of the Secretary of War, 
 1919, pp. 105, 106, 117-120. 
 
UNITED STATES LIQUIDATIOlsT COMMISSION. 49 
 
 parts, sprockets, hubs, shafts, track rollers, track lengths, etc. The 
 expenditures of the entire undertaking, including the building of 
 the factory in France, the production of the components, and all 
 other matters directly connected with the work, were to be shared 
 equally by the two Governments. Completed tanks were to be sold 
 to the French, British, or Americans at £5,000 each, this price being 
 subject to adjustment when the project should be liquidated at the 
 close of the war. After the undertaking was well under way, 
 France, through the Interallied Munitions Council, earnestly in- 
 sisted that the cause of the Allies required that the majority of the 
 large tanks to be assembled at the Chateauroux plant should be allo- 
 cated to her. After much discussion, it was reluctantly agreed that 
 France and the United States should share equally the tanks as pro- 
 duced until the first 1,200 had been finished and that the next 300 
 should be allocated to France. This understanding was never re- 
 duced to writing as a formal agreement, nor was any agreement 
 ever made with regard to the allocation of tanks in excess of the first 
 1,500 to be produced. 
 
 The Chateauroux plant was never quite finished and no tanks were 
 ever assembled there. Immediately after November 11, 1918, work 
 on the whole project was discontinued and conversations began with 
 a view to reaching a settlement in liquidation of the affairs of this 
 enterprise. Approximately 24,000,000 francs had been expended on 
 the erection of the assembling plant for substantially one-half of 
 which the United States was indebted to Great Britain. The amount 
 which the United States and Great Britain had each expended in 
 the manufacture of components has been estimated as approximately 
 £3,000,000. France had invested nothing in the enterprise, although, 
 as noted above, she was to receive nine- fifteenths of the first year's 
 output. 
 
 The liquidation of this undertaking was discussed by the Com- 
 mission's chairman and Mr. Stettinius with the representatives of 
 the British Government in London early in March, 1919, and a 
 tentative agreement in general terms was reached. This agreement 
 was reduced to writing, and formally executed under date of 
 August 8, 1919.2« 
 
 The contract provided that the losses sustained by the two Govern- 
 ments in the manufacture of tank components should be considered 
 as offsetting each other, and that neither Government should bill the 
 other, nor bill the Anglo-American Commission for any of them. 
 The cost of erecting the assembling plant, and all expenses in connec- 
 tion with that undertaking were shared equally between the two Gov- 
 
 2« See Appendix XX for a copy of the " Chateauroux tank agreement " of Aug, 8, 
 1919. 
 
 183176—20 4 
 
50 UNITED STATES LIQUIDATION COMMISSION. 
 
 ernments. Nothing remained, therefore, to complete the liquidation 
 save the disposition of the assembling plant, and the presentation to 
 France of the equitable claim growing out of the allocation to her ot 
 nine-fifteenths of the first year's production. It Avas believed by 
 Great Britain and the United States that the most satisfactory form 
 in which to present this claim to France was to ask her to purchase 
 and take over the plant with all rights and obligations pertaining to 
 it and pay on the transaction a sum sufficient to cover the purchase 
 price, and such share of the general loss as might be determined to be 
 equitably chargeable to France. 
 
 It might seem fair, at first blush, for the proceeds of this sale to be 
 divided equally between Great Britain and the United States because 
 the two Governments had shared equally in all the expenses of con- 
 structing the plant. Great Britain, however, contended with much 
 plausibility that because she had relinquished to France her allocation 
 of 750 tanks (one-half of the first year's output), and because 
 America had relinquished only 150 tanks; the major portion of the 
 pajnnent from France should go to England, in so far as it was a con- 
 tribution to the general loss, and not a payment for the value of the 
 plant. 
 
 Without settling the point with England concerning the division 
 of the proceeds, the Commission joined with the representatives of 
 Great Britain in presenting the claim, through M. Loucheur, to the 
 French Government. M. Loucheur, in his answer, argued that the 
 French understanding of the whole tank situation was that, while 
 the English and American Governments had been planning to con- 
 centrate on the production of heav^^ tanks, the French Government 
 was making large expenditures in concentrating on the production of 
 light tanks, and that, while the French Government would have re- 
 ceived heavy tanks from the Anglo-American Commission, both the 
 English and American Governments would, in turn, have received 
 light tanks from the French Government. He contended further 
 that no more definite agreement had been reached to the effect that 
 France should get heavy tanks than to the effect that England and 
 America should get light tanks; that the moral force of one claim 
 was as strong as the other. 
 
 After this answer had been carefully examined by the representa- 
 tives of Great Britain and by this Commission, negotiations were 
 re-opened with M. Loucheur, which finally resulted in an agreement 
 by the French Government to pay 20,000,000 francs in settlement of 
 the claim, France taking over the Chateauroux plant with all rights 
 and liabilities relating thereto at the time of the contract. It was 
 estimated that the net salvage value of the Chateauroux plant was 
 5,000,000 francs, so that 15,000,000 francs might be considered as in- 
 
UNITED STATES LIQUIDATION COMMISSION. 51 
 
 demnity paid by the French as their share of the losses connected 
 with the undertaking. 
 
 It was clear that England was entitled to a larger share of this 
 indemnity than the United States, because she was to receive no tanks 
 during the first year of the plant's operation, having relinquished 
 her entire share to the French. Of the 900 tanks which France 
 would have received from the first year's production, England would 
 have contributed 750, or five-sixths, and America 150, or one-sixth. 
 England contended that while it was proper to divide the 5,000,000 
 francs equalh^ between the two Governments, the 15,000,000 francs 
 should be divided five-sixths to England and one-sixth to the United 
 States. The Commission finally agreed with Great Britain that the 
 20,000,000 francs received from France should be divided, 70 per 
 cent, or 14,000,000 francs, to Great Britain, and 30 per cent, or 
 6,000,000 francs to the United Spates. On October 4, 1919, a final 
 contract was signed with Great Britain providing for a complete 
 liquidation of the affairs of the Anglo-American [Tank] Commission, 
 and providing in detail for a distribution of funds and settlement 
 of account.^ 
 
 Another matter arose in connection with this settlement. It will 
 be remembered that under the Anglo-American agreement certain 
 tank parts were being made" in the United States and other parts in 
 England while shipments were to be made to France where the 
 tanks would have been assembled. Our War Department in Wash- 
 ington decided that it would be desirable to use some of the com- 
 ponents already produced under this agreement for the manufac- 
 ture of tanks for training and edvicational purposes. The British 
 Government was approached by the chairman of the Commission and 
 it consented to turn over to us, at a salvage price, tank parts suf- 
 ficient to enable us to produce 105 tanks. England estimated that 
 her share of the components for one tank had cost about £5,000, 
 but because tank components had little more than salvage value to 
 her after the Avar she was glad to offer America these parts at 
 slightly over £1,000 per tank. The total bill for this purchase 
 amounted to £105,786 7s.'' 
 
 There was one more tank transaction which remained to be settled. 
 Some time before November 11, 1918, Great Britain had supplied to 
 
 27 See Appendix XXI for (1) a copy of the contract of final settlement of the 
 Chateauroux tank project, dated Oct. 4, 1919 ; (2) a copy of memorandum prepared by 
 M. Loucheur and signed by Loucheur and Morel, on behalf of the French Government ; by 
 C. C. Barry and F. W. Phillips, on behalf of Great Britain ; and by Edwin B. Parker, on 
 behalf of the United States, dated Oct. 9, 1919^ 
 
 28 A full account of all the negotiations carried on in connection with the settlement 
 of the Anglo-American agreement is contained in a typewritten volume in the Commis- 
 sion's files, styled *' R6sum6 of negotiations conducted by United States Liquidation 
 Commission with the British and French Governments In the final settlement of the 
 Anglo-American agreement and the purchase of British tank components," dated Paris, 
 Auer. 28. 1919. 
 
52 UNITED STATES LIQUIDATION COMMISSION. 
 
 the 301st Tank Battalion, United States Army, 64 tanks of various 
 marks, complete with armament and equipment. These tanks were 
 used in fighting while this battalion was brigaded with the British 
 Army. The British supplied spare parts as they were needed. After 
 the war, 14 of these tanks were shipped to the United States and 
 the remaining 50 were returned to Great Britain. A portion of 
 them had been damaged in action. The Commission agreed, by a con- 
 tract dated August 11, 1919, that the United States should keep the 
 14 tanks, the British should keep the 50 tanks, and that the whole 
 matter should be settled by a payment to Great Britain of £189,233 
 2s. lid. 
 
 BRITISH LIBERTY MOTOR SETTLEMENT. 
 
 Under the Cuthell-Inverforth agreement of May 10, 1919,^9 the War 
 Department of the United States was obliged to continue its deliveries 
 of Liberty motors to England until the total should reach 2,252 
 motors. These deliveries were completed out of the surplus Liberty 
 motors which we had in our possession in France and which were 
 not needed to satisfy our obligation under the final aircraft settle- 
 ment with the French Government. 
 
 BRITISH INTEREST CLAIM. 
 
 Prior to the creation of the Commission, the British Government 
 had presented to the American Expeditionary Forces a claim for 
 interest on money invested by the British in stocks which had been 
 sold afterwards to the United States at cost and also a claim for 
 interest on bills payment of which had been delayed more than one 
 month. These claims had already been tentatively recognized by 
 the American military authorities and were among the first im- 
 portant matters with which the Commission was called upon to deal, 
 the chairman making his first examination of them during his visit 
 to London early in March. 
 
 The British claimed that interest on investments made by them in 
 stocks afterwards sold to us should begin to accrue from the date of 
 the investment by the British in such stocks irrespective of the date 
 of the bill or invoice. The Commission in numerous prolonged con- 
 ferences protested against payment of interest for any period previ- 
 ous to the presentation of a proper bill. 
 
 The position which the British took was that our contention would 
 be sound under ordinary conditions, but that the exigencies of war 
 made conditions abnormal, and that they ought not to lose the interest 
 on capital which they had invested for us merely because they had 
 
 » See Appendix XXII for the text of section 3 " Liberty motors and proper proportion 
 of sets of spare parts " of the Cuthell-Inverforth agreement of May 10, 1919. 
 
UNITED STATES LIQUIDATION COMMISSION. 53 
 
 not paused in the process of waging war for the purpose of rendering 
 bills. They claimed that, if America was unwilling to consider inter- 
 est from the date of the investment by the British, at least we should 
 pay interest from the date of delivery. They further pointed out 
 that, during all of this time, they were borrowing money from 
 America and paying interest on it from the date when the credit 
 was extended, and that an important part of this same money had 
 been paid out for the very materials and supplies which they had 
 delivered to us. 
 
 Numerous objections to this claim were put forward by the Com- 
 mission and it would not be profitable to rehearse them here. It is 
 enough to say that the fact was clearly developed that there had 
 been unreasonable delays by each party in the payment of bills. 
 The British finally abandoned their claim for interest on invest- 
 ments covering periods prior to the rendition of bills; and it was 
 finally agreed that interest at the rate of 5 per cent per annum should 
 be paid by each party on every proper bill which had been rendered 
 by the other and which had been held for a period longer than a full 
 calendar month without payment, interest beginning to accrue on 
 the first day of the second month following receipt of the bill. 
 
 Careful studies were made of all bills rendered by either party 
 prior to July 31, 1919, and a summary of these bills was prepared. 
 A balance was struck showing that the British bills against America 
 exceeded the American bills against the British by £51,062,692 15s. 
 5d. It was also calculated that the average period during which 
 all of these British bills had been held unpaid after they had been 
 presented in proper form was five and one-fourth months. An 
 average period of one and one-half months being allowed as a 
 reasonable time for checking and vouchering, it was agreed that in- 
 terest should be computed at 5 per cent per annum for a period of 
 three and three-fourths months on £51,062,692 15s. 5d., and the re- 
 sult, namely £797,854 lis. 2d., should be paid by America to Great 
 Britain in full, final, and complete settlement of all mutual interest 
 claims of this nature accruing from the beginning of the war to 
 and including July 31, 1919. This sum has been paid.'" 
 
 The contract of settlement further provides that interest at the 
 rate of 5 per cent per annum shall begin to accrue October 1, 1919, 
 on all bills rendered prior to August 1, 1919, and which have not been 
 paid on October 1, and, further, that all bills rendered in the month 
 of August which have not been paid before October 1 shall bear in- 
 terest from the latter date and that on November 1 interest shall 
 begin to accrue on all bills rendered during the month of September 
 which have not been paid before November 1. This formula is to be 
 
 ""See Appendix XXIII for copy of the contract settling the interest claims between 
 the British and American Governments, dated Oct. 20, 1919. 
 
54 UNITED STATES LIQUIDATION COMMISSION. 
 
 followed until all mutual bills and accounts between Great Britain 
 and the United States growing out of the war have been paid. It 
 will be noted that this plan allows an average period of 45 days for 
 checking and vouchering bills before interest begins to run. 
 
 Bills are not " rendered " for the purpose of this contract until 
 they are presented in a correct and proper form, i. e., the form in 
 which they are ultimately paid. A bill which is delayed in pay- 
 ment on account of being returned for correction is not " rendered •' 
 until presented again in correct form. 
 
 It may be of interest to note in passing that measures were taken 
 by the Commission to insure the prompt payment by the American 
 forces of all proper bills rendered by the British against them and 
 that practically no interest is accruing at this time nor has any ac- 
 crued for some months past. It is also interesting to note that, by 
 force of circumstances for which neither government is censurable, 
 America has gained very much more by reason of the decline in the 
 rate of exchange than she has lost by the payment of interest for any 
 periods of delay. 
 
 LIQUIDATION OF THE NITRATE POOL. 
 
 In the early part of 1918 America agreed with (xreat Britain. 
 France, and Italy that the purchase of nitrate of soda, which was 
 required in large .quantities by these Governments for use in the. 
 manufacture of powder and explosives, should be allocated through 
 a "nitrate executive" stationed in London. The world's supply of 
 nitrate of soda is located in a small area near the coast of Chile, and 
 its export is controlled by the Chilean Government. Purchases Tvere 
 made from time to time by or for account of the respective Govern- 
 ments, or for importers under allocations made in London by the 
 nitrate executive. 
 
 Immediately after the armistice all importations from Chile to 
 the United States were stopped, and the War Department took ac- 
 count of its stocks. It turned over 192,000 tons to the Department 
 of Agriculture for sale and use in the production of soil fertilizers. 
 It placed 300,000 tons in War Department reserve. After these dis- 
 positions it was calculated that the surpluses remaining, including 
 a small Navy Department surplus, were something OA^er 28,000 tons 
 in the United States and about 120,000 tons in Chile. 
 
 Early in December, 1918, a tentative understanding was reached 
 between the British ministr}^ of munitions and the American War 
 Department for the formation of a pooling arrangement, according 
 to which the surplus stocks of nitrate held by the two Governments 
 might be disposed of. The terms of this understanding were not 
 well defined, and when the matter was taken up with the British 
 representatives I)y the chairman of the Commission on his visit to 
 
UNITED STATES LIQUIDATION COMMISSION. 55 
 
 f^ondon early in March the British were not prepared to admit that 
 ;i real " pool " had been formed. After some conversation, however, 
 the existence of the pool was admitted in principle. 
 
 There were several difficulties in the way of a prompt disposition 
 of the stocks and conclusion of the affairs of the pool. The stocks 
 were widely scattered. Some of them were in Chile, some in the 
 United States, some in Great Britain, and some in Canada. It was 
 difficult to get accurate information about their exact amounts and 
 exact locations. More than one department of both Governments 
 was interested in the disposition. Much delay was incident to the 
 exchange of cables between London, Chile, Canada, Washington, and 
 the Commission. 
 
 Finally, after numerous and prolonged conferences, a contract of 
 settlement of the entire controversy was executed as of September 15, 
 1919, and delivered on October 29, 1919.^^ This agreement provides 
 that the pool shall be construed to exist to the extent of participa- 
 tion — 
 
 Tons. 
 
 By the British Government, witli stocks of 436, 628 
 
 By the United States Government, with stocks of 1.57, 396 
 
 Making a total of 594,024 
 
 Of this amount 226,173 tons remained unsold on September 15, 
 1919. This unsold surplus is bought by each Government from the 
 " pool " under the terms of the contract, the quantity purchased by 
 each being in a ratio equal to the ratio of the two contributions. The 
 price to be paid by each Government and credited to the " pool " is 
 8s. 6d. per quintal (22 quintals equal 1 long ton) for refined nitrate 
 and 8s. 2d. per quintal for ordinary nitrate, plus $17.50 per ton for 
 ocean freight to the United States and 140s. per ton to England, and 
 plus marine insurance charges. The stocks allocated to America in 
 this sale consist of 28,376 tons located in the United States, 16,598 
 tons located in Canada, and 14,954 tons located in Chile, or a total 
 of 59,928 tons. The stocks allocated to Great Britain consist of 
 58,468 tons located in the United Kingdom and 107,245 tons located 
 in Chile, or a total of 165,713 tons. The profits and losses of the pool 
 are to be apportioned between the two "Governments according to the 
 ratio of their contributions of nitrate as set down in the schedule 
 above. 
 
 Deliveries are now being made under these allocations. When they 
 are complete it will be necessary to make some adjustments in accord- 
 ance with the terms of the contract of September 15, 1919, above 
 
 81 See Appendix XXIV for a copy of the contract of liquidation of the nitrate pool, 
 together with a memorandum of the revised figures which have finally been used as the 
 basis for the allocation of the stocks. See also minutes of Commission meeting held Dec. 
 3, 1919, Minute Book, p. 452. 
 
56 UNITED STATES LIQUIDATION COMMISSION. 
 
 mentioned, and then a final statement can be prepared and the liqui- 
 dation completed. This pooling arrangement as finally consummated 
 will prove advantageous to America. It is quite important that the 
 final accounting should be done by the War Department through a 
 representative who is thoroughly familiar with the whole series of 
 transactions. The Commission's files contain a complete record, but 
 it is voluminous. 
 
 BILLS, ACCOUNTS, AND CLAIMS PENDING IN GREAT BRITAIN. 
 
 Nearly all the bills, accounts, and claims of America against Great 
 Britain growing out of the war, whether they arose in the United 
 States, England, France, or elsewhere, have been presented and finally 
 disposed of. There still remain, however, a fairly large number of 
 bills to be presented by Great Britain against America arising out 
 of transactions both in England and in France. It is roughly esti- 
 mated that these bills will aggregate £5,000,000 at this time. The 
 Commission has continuously brought pressure to bear upon the 
 several departments of the British Government to induce them to 
 present these bills in order that a full, final and complete mutual 
 settlement of all transactions between the two Governments growing 
 out of the war might be concluded. It is believed, however, that 
 while a large number of these bills and claims have been presented 
 and disposed of, they will perhaps not all be rendered for several 
 months to come. The British representatives have assigned, as the 
 reason of this delay, the constant changes and wholesale reductions 
 in the personnel of their several departments. 
 
 There are three unliquidated claims of Great Britain against 
 America for very substantial amounts which are still pending. These 
 have not yet been presented to the Commission in anything like com- 
 plete form. They are still being studied by British representatives, 
 who state that they expect at an early date to be in a position to 
 present them with data, evidence, and arguments in their support. 
 
 EXCESS COSTS CLAIM. 
 
 The most important one of these pending claims has come to be 
 known as the "excess costs" claim, or the claim for "hidden loss 
 on steel." During the series of interviews which the chairman of 
 the Commission had with the British officials early in March, 1919, 
 notice was informally given that it was their intention to present a 
 claim for excess cost of steel, and that the basis of this claim was 
 the fact that the British had billed America for steel products, 
 especially artillery and artillery ammunition, using the artificially 
 low price which had been fixed by the British Government for the 
 
UNITED STATES LIQUIDATION COMMISSION. 57 
 
 issuance of steel to their manufacturers, termed by them "manu- 
 facturers' issues price." The British stated that these bills against 
 America did not take into account subsidies and other elements of 
 cost which their government had paid directly or indirectly for the 
 steel. They also stated that it had become necessary for them to 
 purchase steel in America at a price not only higher than their 
 government-fixed price but higher than the actual cost of steel in 
 England, in order that they might be able to supply the United 
 States with products of which steel formed a large constituent part. 
 
 In concluding the several artillery, ammunition, and tank agree- 
 ments referred to above, the rights of Great Britain arising under 
 this " excess costs " claim were specifically reserved without preju- 
 dice to either party. 
 
 On August 1, 1919, the British presented their first written state- 
 ment of this claim, showing the amount involved according to their 
 accounting to be approximately £3,770,000. Among other conten- 
 tions put forth by them in support of the claim, one was to the effect 
 that, in all America's purchases from Great Britain of finished 
 articles of which steel formed a constituent element, America had 
 originally promised to replace the steel ton for ton in Great Britain. 
 They said that the stocks containing steel had been sold in great 
 quantities to America and billed on the basis of the British fixed 
 price of steel to manufacturers; that, the price of steel in America 
 being much higher than it was in England, America was liable to 
 Great Britain for the difference between these two prices on all 
 steel purchased by the latter country in the United States because 
 such purchases were necessary to replace the steel contained in prod- 
 ucts furnished to America. They have sought to apply here the prin- 
 ciple that, in cases of reciprocal supply, neither nation ought to make 
 a profit nor sustain a loss. In this case they insist that they have 
 lost money on all steel products furnished to America on the basis 
 of the bills already rendered. 
 
 The Commission has answered in part that the " replacement ob- 
 ligation " did not, and was never intended to, control or affect prices^ 
 but was entered into as a measure of insurance to Great Britain that 
 ■she would secure steel tonnage from America at least equal to the 
 steel entering into the products sold by Great Britain to the United 
 States. When this replacement arrangement was agreed to neither 
 party was greatly concerned about prices^ but both were very much 
 concerned about the allocation of bottoms for steel, because all of 
 the Allies were in great need of tonnage. It was further pointed 
 out that the replacement obligation had been entirely cancelled, with- 
 out reservation or condition, by the agreement concluded between the 
 representatives of America and Mr. Churchill, British minister of 
 munitions, in October, 1918. 
 
58 UNITED STATES LIQUIDATION COMMISSION. 
 
 The Commission took the position, however, that it was the wish 
 and purpose of America to compensate Great Britain for every proper 
 element of cost which could be definitely assigned to products sold to 
 America by the British. With this in view the British representatives 
 undertook to ascertain (1) the average loss on all steel which the 
 British Government furnished to British manufacturers during the 
 year preceding November 11, 1918, the calculation being based on the 
 difference between government prices to manufacturers and actual 
 cost to the government, taking into account every direct element; 
 (2) the amount of such steel which has entered into products sold to 
 America by Great Britain; and (3) the hidden loss to the British on 
 all steel furnished to America as estimated in this way. 
 
 Such a calculation was made, and a memorandum setting forth the 
 items making up the costs w^as presented to the Commission by the 
 British representatives on November 10, 1919. This memorandum 
 furnished the basis of several conferences at which the Commission 
 pointed out that some of the items of alleged loss were too remote 
 and indirect in their nature to be considered as '' costs." An example 
 of such indirect charges was an item covering bonuses paid by the 
 British Government to manufacturers of silica brick, for the pur- 
 pose of stimulating their production, that the brick might be used in 
 the building of furnaces for the production of steel for the manu- 
 facture of shells, some of which were sold to America. The Commis- 
 sion pointed out how impracticable it would be for each Govern- 
 ment to trace every remote and indirect element of cost which had en- 
 tered into the production of materials furnished to the other. Atten- 
 tion was called to the fact that, under the principle which Great 
 Britain was seeking to apply here, she might ask America to par- 
 ticipate in the subsidy which she had paid on the bread which the 
 workers in her steel mills had eaten. Another point which has been 
 urged by us is that Great Britain has not included any item of credit 
 to America for the large sums collected by her in the form of excess 
 profit and war profit taxes from her steel manufacturers. 
 
 The British have urged that both France and Italy have already 
 recognized the justice of the principle for which they are contending, 
 because these countries have paid to Great Britain two sets of bills 
 on all their purchases of steel products. One set covers straight cost 
 to the manufacturers, the other, or supplemental, set was based on the 
 price paid by Great Britain for American steel and represented a 
 " hidden loss " of the character described in the claim which they are 
 now presenting against us. 
 
 The British representatives are making additional studies of this 
 claim in the light of the objections which we have urged, and they 
 promise to present it again in revised form. 
 
UNITED STATES LIQUIDATION COMMISSION. 59 
 
 OVERHEAD EXPENSE CLAIM. 
 
 Another important claim which is still pending is called the " over- 
 head expense claim." This matter arises out of a general claim by 
 the British Government for reimbursement for certain expenses such 
 as inspection, storage, handling, transportation, and insurance, con- 
 nected with materials which the British Government bought for us 
 from its own nationals or sold to us from its own stocks. The British 
 claim that there have been expenses, in addition to the face of bills 
 rendered by nationals, connected with handling this material in our 
 behalf between the time when it left the contractor and the time 
 when it came into the hands of the American Army. The problems 
 arising in connection with these so-called " overhead charges " have 
 been solved and all claims adjusted with the British ministry of 
 munitions. 
 
 With the British war office, however, the matter is still unsettled. 
 From July 29 to August 30, 1919, the overhead expense items in war 
 office bills were allowed. But, during August, the war office gave 
 notice that they intended to add 4 per cent, or such part thereof as 
 might be applicable, to all their overhead expense charged on bills 
 previously rendered and on all bills in the future. As it was be- 
 lieved that it would require a great amount of unnecessary work to 
 audit the overhead expenses, if they were presented in detail by the 
 war office ; it was agreed that the British might present their claim 
 in lump-sum form ; and, as it was thought best to make no payments 
 which might interfere with this proposed arrangement, a memo- 
 randum was issued on August 30 suspending all payments for war 
 office overhead expenses. This memorandum is still in effect. The 
 British have presented their lump-sum offer in tentative form, and 
 the total claim- amounts to nearly £1,000,000. The Commission has 
 made it clear to the British representatives that some of the items of 
 this claim can not be considered because they are too indirect; such 
 items for example as pertain to Government administrative expenses 
 or interest on capital investments. Other items are believed to be 
 proper charges against America and should be allowed when they 
 are suitably presented and established. 
 
 SUPPLEMENTAL CLAIM FOR RAILWAY TRANSPORTATION. 
 
 America has paid Great Britain for the railway transportation 
 of troops and supplies at her established military rates, payments 
 being made when and as the services were rendered. During the 
 w^ar Great Britain made certain guaranties of income to her railroads 
 under which she is now being called upon to pay substantial sums. 
 A short time ago she reached an agreement with her railroads in 
 
60 UNITED STATES LIQUIDATION COMMISSION. 
 
 terms of which there is an increase in the military rates for the 
 transportation of troops and supplies, this increase being retroactive 
 to the extent that it applies from April 1, 1919, forward. The sug- 
 gestion has been made that the British now render supplemental 
 bills against America on the basis of these increased rates covering 
 all items of transportation of our troops and supplies since April 
 1, 1919. 
 
 The Commission has said to the representatives of Great Britain 
 that America can not consider any such claim. It has been pointed 
 out that the United States might make an analogous claim against 
 Great Britain for the payment of her share of the loss which has been 
 sustained by our Government in taking over the operation of our 
 railroads during the war period. This share might be calculated by 
 determining the ratio oi transportation for the British to the total 
 transportation in America. Were we to recognize the right of Great 
 Britain to bind us by retroactive agreements there might be no limit 
 to the liabilities which Great Britain might incur for our account 
 in revising contracts for munitions, supplies, and services and in 
 other ways. Likewise if the United States should begin all over 
 again to calculate the exact cost to her of everything which she has 
 procured from her own nationals in behalf of Great Britain every 
 settlement which has been made would have to be revised. 
 
 CONTRACT CLAIMS OF NATIONALS. 
 
 During the war it became necessary for the American Expedition- 
 ary Forces to enter into contracts for the purchase or manufacture 
 of war supplies with the nationals of France, England, Italy, Spain, 
 Portugal, and Switzerland. A large number of these contracts were 
 active when the armistice was signed, and for the most part these 
 were promptly cancelled in whole or in part according to the state 
 of production and the extent to which the products would be used 
 by the American forces. The cancellation of these contracts in 
 most instances necessarily involved losses to those with whom they 
 had been placed; but, as the resulting damages were unliquidated 
 in their nature, there was some doubt as to the right of the several 
 services of the American Expeditionary Forces, or of the War De- 
 partment, to settle same. This doubt was removed by Congress 
 when it passed the act of March 2, 1919, conferring broad powers 
 upon the Secretary of War, and through him upon the Commission, 
 to make equitable adjustment of all such claims. 
 
 Searching and painstaking investigations were made through the 
 several services which had negotiated the contracts of manufacture 
 and purchase in the first instance, and their reports were in turn 
 reviewed and frequently supplemented by the Chief Finance Officer, 
 who in turn transmitted the files to this Commission, where they 
 
UNITED STATES LIQUIDATION COMMISSION. 61 
 
 were again subjected to a careful examination and frequently were 
 the subjects of conferences between the claimants, the chiefs of the 
 services interested, the Finance Officer, and members of the Commis- 
 sion or of the Commission's staff. It became necessary from time 
 to time for the Commission to send claims back for re-investigation, 
 re-study, and re-consideration, and in several cases, notably those 
 arising in Switzerland and Spain, special representatives were sent 
 by the Commission to make first-hand investigations and reports. 
 
 There were in all allowed 446 claims for cancellation of contracts, 
 besides a number of disputed bills payment of which the Commission 
 authorized. Indemnities have been paid in the currencies of the 
 various nations where the matters arose and the rates of exchange have 
 varied: Almost everywhere the rate has been considerably below par. 
 The total amount claimed, expressed in dollars at the normal rate of 
 exchange, was $17,427,175.41, while the total payments made, expressed 
 in dollars at the normal rate of exchange, amounted to $8,413,984.19. 
 There have been 53 contract claims disallowed for various reasons. 
 Their total in dollars at the normal rate of exchange would have 
 been $739,894.91.^2 
 
 SETTLEMENTS WITH FRANCE. 
 
 FRENCH ARTILLERY AND AMMUNITION SETTLEMENT. 
 
 During the latter part of July, 1918, Edward R. Stettinius, 
 then special representative of the Secretary of War, began, in the 
 light of the increased military program of the United States, to 
 negotiate with the French and British Governments for increased 
 allotments of artillery and artillery ammunition. Numerous esti- 
 mates were exchanged between him and the French officials, and 
 French production was increased and pressed to its fullest capacity 
 in order to meet America's needs. 
 
 While no formal contract was ever entered into between the two 
 Governments, and w^hile neither the exact number of guns which 
 the French could furnish, nor the exact number of components for 
 them which the United States could supply was ever definitely agreed 
 upon, there is no doubt that the United States relied upon the French 
 to assist them substantially in their artillery program, and that the 
 French enlarged their production with this in view. A list of the 
 materials and components which America could supply was drawn 
 up, and a list of the guns which the French could supply, expressed 
 in terms of numbers per month, was prepared. Both lists were cor- 
 rected from time to time and a discussion of these figures continued 
 until the date of the armistice. In the meantime, however, orders 
 
 « See Appendix XXV for a chart showing the number of claims settled, the total 
 amount claimed in all cases where specific amounts were claimed, the amount allowed 
 by the Commission, and the number of claims disallowed. 
 
62 UNITED STATES LIQUIDATION COMMISSION. 
 
 were regularly given, and stocks delivered by Both parties in pur- 
 suance of the general understanding.^^ 
 
 It was understood that the price to be paid by America should be 
 cost to the French Government. As the signs of an approaching 
 armistice began to be detected, efforts to conclude these arrange- 
 ments in a formal contract w^ere halted, but it was always perfectly 
 clear that America was obligated to France in regard to the guns 
 which the French had in process of manufacture for America. 
 
 Immediately following the armistice, Mr. Stettinius began negotia- 
 tions looking to a fair and equitable settlement of these obligations 
 to the French, with a view to reducing our investments to a mini- 
 mum, yet at the same time getting, in the form of completed artillery 
 units, as nearly as possible value received for the money invested. 
 In the first conference held with the French authorities it developed 
 that France could not, for economic and social reasons, suddenl}; 
 cease production, and that they were inclined to hold us responsible 
 for accepting large deliveries. 
 
 Mr. Stettinius took the position, which he steadfastly and con- 
 sistently maintained, that the United States ought not to pay for any 
 materials which had been produced as a result of continuing the 
 operation of French factories beyond the war period in the interest 
 of the social and economic Avelfare of France, and for the benefit of 
 her people. The French authorities finally acquiesced in this posi- 
 tion and in December, 1918, Mr. Stettinius had in conference with 
 M. Loucheur, representing the French Government, agreed in prin- 
 ciple upon the terms of a settlement. 
 
 An inventory was made of the guns in process, with percentages 
 of completion on the date of the armistice. These figures were re- 
 duced to terms of completed guns, and America agreed to accept de- 
 livery of and pay for that many guns, orders for all others being 
 cancelled, without charge. The artillery ammunition in common 
 dumps was to be sorted, America taking all of the American manu- 
 facture, and France all of French manufacture. Contracts under 
 which the French were to complete shells and load them and con- 
 tracts under which America was to furnish empty shells were to be 
 mutually cancelled without charge. 
 
 It is believed that the underlying principles of this settlement are 
 fair and just to both parties. Certain it is that America has no cause 
 for complaint. As soon as the Commission was established the terms 
 of this pending settlement were discussed at length by the conmais- 
 sioners with Mr. Stettinius and measures were taken to apply the 
 
 33 See Appendix XXVI for (1) a catalogue of artillery components to be furnished 
 by United States to Prance, and (2) a catalogue of guns to be furnished by France to 
 United States, as established in the arrangement between Stettinius and Mercier on 
 Sept. 19 and 21, 1918. These figures were never greatly changed, and they were actually 
 acted upon by the iwo Governments in order to save time. 
 
UNITED STATES LIQUIDATION COMMISSION. 63 
 
 principles already tentatively established and to reduce the matter 
 to a formal contract, which, however, was not finally executed until 
 August 28, 1919.^* 
 
 The terms of this contract may be briefly summarized as follows : 
 
 First. France delivers to the United States — 
 
 (a) 944 75-millimeter gun materials, model 1897, with limbers. 
 
 (b) 700 155-millimeter howitzer materials, model 1917, Schnei- 
 
 der design, with limbers. 
 
 (c) 198 155-millimeter G. P. F. materials with limbers. 
 
 (d) Additional spares as specified. 
 
 France waives all claims for indemnity for the cancellation of 
 arrangements for the purchase of artillery components and ammu- 
 nition. 
 
 Second. In consideration of such deliveries the United States, 
 in the general settlement with France, credits the latter with 
 117,501,887.45 francs. 
 
 Under this settlement the United States has acquired artillery units 
 of standard types at cost without being required to take and pay for 
 any additional ammunition, with which we are already abundantly 
 supplied, and without the payment of $1 in the form of cancellation 
 indemnities. 
 
 FRENCH AIRCRAFT SETTLEMENT. 
 
 When the armistice was signed, there was being manufactured by, 
 or through, the French Government in various factories in France, 
 for the use of America, large numbers of airplanes, and large quan- 
 tities of aeronautical material under a contract dated May 3, 1918, 
 and signed by Gen. Pershing. By the terms of this contract, written 
 orders were placed from time to time with the French air ministry, 
 which in turn allocated them to particular French factories. The 
 price to America was to be the same as that paid by the French 
 Government for similar articles contracted for at the same time and 
 on similar terms ; or, if there were no such contracts, then it was to 
 be the same as the price on current contracts of the French Govern- 
 ment for similar articles plus, in either case, 5 per cent for inspec- 
 tion, supervision, and other overhead expenses. The contract would 
 haA^e expired on June 30, 1919, and it provided for the delivery of 
 a certain number of planes each month. It contained no cancella- 
 tion clause, but the French Government had a cancellation clause in 
 each of its contracts with the manufacturers. 
 
 On November 11, 1918, the American Air Service wrote to the 
 French air ministry giving informal notice of cancellation of all 
 orders for aeronautical materials, and negotiations were at once 
 
 3* See Appendix XXVII for copy of (1) French artillery and artillery ammunition 
 contract dated Aug. 28, 1919, and (2) supplement to French artillery and artillery 
 ammunition contract dated Nov. 20, 1919. 
 
64 UNITED STATES LIQUIDATION COMMISSION. 
 
 begun between Mr. Stettinius and the chief of the air service, Ameri- 
 can Expeditionary Forces, representing America, and M. Tardieu 
 and the French air ministry, representing France, looking to an 
 equitable adjustment of the respective rights and liabilities of the 
 parties arising under this contract and its cancellation. Each 
 party instituted separate far-reaching and intensive studies of the 
 conditions of manufacture of these materials, factory by factory, 
 in order to ascertain the actual loss to France in cancelling these 
 contracts. 
 
 A survey made by an American Air Service committee, con- 
 sisting of 17 officers and 2 civilians, was completed by the latter 
 part of December, 1918. This survey showed (1) the number of 
 cellules (airplanes without motors) of various types allocated to the 
 American Expeditionary Forces; and (2) the number of cellules 
 actually in process of construction, together with their percentage 
 of completion. With these data in hand, the percentage of com- 
 pletion of cellules under construction was reduced to an equivalent 
 of completed cellules, and their purchase price under the contract 
 computed. These coniputations were made with a view to proposing 
 to the French that America might satisfy her obligations in respect 
 to this contract and its cancellation, by taking and paying for com- 
 pleted cellules in place of taking and paying for a large quantity 
 of materials in process, of which the estimated salvage value was 
 only about 5 per cent of the cost of production. 
 
 There were wide discrepancies between the estimates made by the 
 American and French services respectively, and it was only after 
 long and painstaking conferences and diligent study that these differ- 
 ences were finally reconciled and adjusted. The problems presented 
 by this settlement were among the first taken up by the Commission 
 after it reached Paris. The negotiations and work were carried on 
 under the supervision, and with the approval of the Commission, by 
 Maj. Gen. Patrick, Chief of the American Air Service, and the mem- 
 bers of his staff, and an agreement with the French was reached in 
 May, providing for the following payments by America : 
 
 Francs. 
 
 For 3,568 cellules in process 56,295,662 
 
 For 3,979 motors in process 64, 563, 788 
 
 For "cancellation costs''^ 14,710,537 
 
 For spare parts in process '* 19, 962, 553 
 
 For cancellation of spares 8,225,004 
 
 For miscellaneous materials in process 3, 496, 628 
 
 For cancellation of miscellaneous materials 413, 589 
 
 167, 667, 761 
 
 ^ The " cancellation costs " were for raw materials, commitments, and labor, less 
 
 salvage value, in connection with articles ordered but not yet in process of construction. 
 
 » The " spares " and miscellaneous articles represented aviation accessories in process 
 
 of manufacture. Pfllrnlfltpd nn thp samp hnsis ah that nf f»plliilps nnd mnfors. 
 
UNITED STATES LIQUIDATION COMMISSION. 65 
 
 This settlement contemplated that aeronautical material of the 
 value of 144,318,631 francs was to be delivered to the United States 
 and paid for by it; while the United States was to paj^ 23,349,130 
 francs '' cancellation costs." France released the United States from 
 any further obligations under the contract of May 3, 1918, and sub- 
 sequent orders placed pursuant to its terms. The underlying prin- 
 ciple of the settlement was to find the actual cost to France of mak- 
 ing the cancellations, and then, instead of the United States accept- 
 ing salvage value only — estimated at 5 per cent — on left-over mate- 
 rials, it should as far as possible take deliveries of these materials 
 in terms of finished products. From what follows, it will be seen 
 that the agreement concerning deliveries under this settlement was 
 considerably modified in connection with the settlement of our " Lib- 
 erty motor" claim. 
 
 LIBERTY MOTOR SETTLEMENT. 
 
 About the middle of May, the Commission, Mr. Cuthell, Gen. 
 Patrick, and members of his staff presented to the French air minis- 
 try America's claim against France growing out of the production 
 of Liberty motors in the United States. After several conferences 
 with the French authorities, it was agreed that the same principles 
 which governed in the settlement of the claim of France against 
 America for the cancellation of the aircraft contract of May 3, 1918, 
 should apply to the settlement of the Liberty motor claim. By this 
 method it was established that France owed the United States the 
 sum of $21,272,250, of which $19,530,000 represented the cost of 
 Liberty motors and spare parts which France was entitled to receive 
 from America, and the remainder represented cancellation indem- 
 nities. 
 
 The two settlements of large and complicated transactions, by the 
 application in each case of the same general principles, left America, 
 on the one hand, obligated to deliver to France a large number of 
 Liberty motors, spare parts, and materials, much of which was in the 
 United States, and for which France had no particular use ; and, on 
 the other hand, left France obligated to deliver to the United States 
 a large number of airplanes and airplane materials which were lo- 
 cated in France, and for which America had no particular use. 
 France did want 500 Liberty motors, and America did want a small 
 part of the quantity due her of airplanes and materials. The French 
 took delivery of the 500 Liberty motors, and America took delivery 
 of a number of airplanes and spare parts of the types which she 
 could use to the best advantage, leaving with France airplanes and 
 spare parts which America was entitled to receive of a cost value 
 sufficient to balance the cost value of the Liberty motors which 
 183176—20 5 
 
66 UNITED STATES LIQUIDATION COMMISSION. 
 
 France was entitled to receiA^e but did not take from America. At 
 this point, the mutual obligations to deliver were canceled.^^ In 
 this way both parties were relieved from taking delivery of equip- 
 ment and material which they did not need, and the enormous ex- 
 pense of handling and transportation, both by land and sea, was 
 saved. 
 
 The Liberty motors and spare parts belonging to the United 
 States in France were used in filling our obligations to make deliv- 
 eries to England, in accordance with our Liberty motor settlement 
 with her f^ and a limited number of them were sold to Poland. 
 
 FKEXCH TRANSPORTATION SETTLEMENT. 
 
 When the American Expeditionary Forces arrived in P'rance they 
 found that all transportation for the French Arm}^ was being for- 
 warded on " Ordres de Transport " signed by French Army officers, 
 and that British troops and materials were going forward on like 
 orders signed by British officers. An agreement was promptly per- 
 fected with the French Government providing for the transporta- 
 tion of American personnel and supplies over French railroads under 
 the same arrangements, the orders being signed by American offi- 
 cers. When the Commission took up its work it found that, although 
 the matter had been the subject of careful consideration and numer- 
 ous conferences, not one cent had ever been paid France or the French 
 railroads on account or otherwise, no rate had ever been fixed, nor 
 had any formula or agreement been reached as a basis for payment 
 by America for the extensive services rendered her by the railroads 
 of France. 
 
 During the war the American Expeditionary Forces brought to 
 France and put in operation on the French railroads approximately 
 1,100 locomotives and 17,000 cars. In addition it established large 
 depots, regulating stations, and repair shops, together with about 
 300 private sidings to connect our installations with the main lines. 
 Our Army furnished to the French railroads engine crews, train 
 crews, repair shops, and personnel, together with all kinds of rail- 
 way materials and supplies. All of these services were rendered, 
 and all of this equipment was furnished, without any particular 
 agreement for compensation, although there was always of course 
 the general understanding on both sides that everything was to be 
 for " cost " to the supplying nation. 
 
 The reason for the absence of specific agreements on this, as on 
 several other important matters, is to be found in the enthusiasm and 
 
 "* See Appendix XXVIII for a copy of the contract between the United States, acting 
 through the Liquidation Commission, and France, acting through the Minister Aero- 
 nautique, dated Nov. 8, 1919, with exhibit attached. 
 
 ^ See p. 52, this report. 
 
UNITED STATES LIQUIDATION COMMISSION. 67 
 
 energy with which everybody's attention during the war was very 
 l^roperly concentrated on the problem of driving forward the mili- 
 tary program. The accounting and final reckoning always received 
 secondary attention. When the Commission took up this problem, 
 in March, 1919, it found both the American and French transporta- 
 tion records extremely difficult to handle because so little had been 
 done to make cumulative summaries from time to time and because 
 some of the records were incomplete. It was only after a series of 
 conferences participated in by the commissioners and members of 
 their staff and extending through many days and weeks, in which 
 every avenue of information was explored with painstaking care and 
 various facts and theories of the case were developed, that the Com.' 
 mission was able to formulate and propose a basis for settlement. 
 
 In 1898 the French Government entered into an agreement called 
 the Traite Cotelle with the six principal railroad companies of 
 France. This covenant provided for the rates and conditions of 
 military transportation in time of war and it was to continue in force 
 for a period of 10 years, subject to renewal at the option of the 
 government. The rates fixed by it were intended to reimburse the 
 railroads without profit for the services to be rendered, and the 
 estimates upon which they had been calculated were based on the 
 low commercial rates existing in 1898. The theory at that time was 
 that the impending war would be of short duration and that the rail- 
 roads would be able to handle the large volume of traffic invalved in 
 mobilization and demobilization of the Army at very low figures. 
 
 This expectation was not realized. The volume of traffic sur- 
 passed all estimates and the cost of operation steadily advanced. As 
 the war went on and the condition of the French railroads became 
 worse and worse, the demand from the railroads became very in- 
 sistent that the rates provided for in the Traite Cotelle should be 
 substantially increased. It was not, however, until the spring of 
 1919 that a new agreement was concluded between the French Gov- 
 ernment and her railroads. The increases provided for in this new 
 agreement are not excessive. In fact, some of the experienced rail- 
 road men connected with the American Expeditionary Forces' trans- 
 portation service with whom the Commission consulted, have advised 
 that justice to the French railroads required still greater increases. 
 
 The charges for the railway transportation of our troops and 
 supplies in France were, of course, ultimately due to the individual 
 French railroad companies, the railroads being privately owned. 
 But, when our troops entered France, the French Government had 
 assured us that we should have the use of all of the transportation 
 facilities in France on the same terms which their Government en- 
 joyed and all of our original dealings were directly with that 
 government. Moreover, the French Government owed its railroads 
 
68 UNITED STATES LIQUIDATION COMMISSION. 
 
 a much larger sum than we owed them and they were anxious that 
 we should not make independent settlements with the individual 
 lines and thus establish precedents Avhich might embarrass them in 
 their own dealings with the railroad companies of their country. 
 From America's viewpoint it was clearly to our advantage to deal 
 with the French (jovernment instead of directly with the railroads 
 inasmuch as the statements of account and settlements with the 6 
 trunk lines and 79 secondary lines would have required a very large 
 corps of accountants and an enormous overhead expense, whereas 
 by dealing with the government directly we were able to make one 
 final settlement and leave behind no claims to arise and annoy us 
 in the future. 
 
 In discussing the settlement, the Commission insisted upon a 
 fundamental principle which was finally accepted by the French 
 Government, viz, that America' would pay for transportation of her 
 personnel and freight at the same rates at which the French Army 
 paid, provided that the rate fixed should not yield, out of the share 
 coming from military transportation, a higher operating revenue 
 than the average operating revenue for the three years prior to 1914. 
 This principal was an important factor influencing the French Gov- 
 ernment and the F'rench railroads in their revision of the Tvaite 
 Cotelle. The new military rates were designed to wholly reimburse, 
 without profit, the French railroads for the cost of the services which 
 they had performed, including in that cost such share of a fair rate 
 on invested capital as could be justly assigned to the military services 
 rendered, but not including enough to make up the deficit which had 
 resulted from inadequate commercial rates during the war. 
 
 Numerous troublesome questions arose in connection with the 
 application of the general principle ; for example, the question of the 
 rental rates to be paid by French railways for the larger and more 
 expensive American engines, the proper rentals for American freight 
 cars, which were double the size of the French ones, the proper freight 
 rate by carload lots in the larger cars, etc. It was found that, in 
 addition to the claims against us for transportation of personnel and 
 freight over French main line roads, there were a large number of 
 claims for transportation over 79 secondary lines, claims for main- 
 tenance of about 300 private sidetracks and connections built to reach 
 American installations, claims for switching and demurrage, for 
 rental of French locomotives leased to America for yard service, for 
 rental of buildings and other facilities, for French employees en- 
 gaged in private service in American yards, for supplies including 
 coal, oil, waste, heat, light and power, for the upkeep of American 
 rolling stock by the French, for damage to certain equipment and 
 materials by America, for construction expenses including a large 
 claim for construction work on tJie secondary railways used for 
 
UNITED STATES LIQUIDATION COMMISSION. 69 
 
 American forestry operations, and for various other services and 
 supplies. 
 
 As a partial set-off to these claims America had a long list of mis- 
 cellaneous claims against the French railroads and the French Gov- 
 ernment. The}^ were for rental of locomotives and cars, for services 
 of train crcAvs, for the repair of French cars and locomotives, for 
 coal, oil, waste, and other supplies furnished to the French railroads 
 for their engines, for loss and damji^e, theft or appropriation of 
 American freight, for unloading and handling at ports materials for 
 the French Government, for reconstruction work on French railways 
 in the zone of the advance east of Verdun, for rent of Belgian loco- 
 motives leased by America from Belgium and re-leased to French 
 railways, for erection by America of locomotives and cars for French 
 railroad companies and for the French Government, and for various 
 other services and supplies. 
 
 For the purpose of handling this problem and reaching a settle- 
 ment the Commission created a special section headed by Col. F. A. 
 Delano, deputy director general of transportation of the American 
 Expeditionary Forces and formerly president of the Wabash Rail- 
 road and a member of the Federal Reserve Board. This section 
 undertook to reduce these claims and counterclaims to concrete form 
 and to state an account between the United States, on the one part, 
 and the French Government and the French railroads, on the other 
 part. Finally, after several months' work on the part of Col. Delano 
 and his staff, an account was stated covering all transportation mat- 
 ters arising between April 6, 1917, and October 1, 1919, which 
 showed : 
 
 Due by United States to France: Francs. 
 
 For transportation of all freight and troops 430,000,000.00 
 
 For miscellaneous charges 71, 107, 336. 53 
 
 501, 107, 336. 53 
 Due by France to United States: 
 
 For miscellaneous charges ■ 66,121,946.80 
 
 Net balance due by United States to France 434, 985, 389. 73 
 
 It was with some difficulty that the French Government was per- 
 suaded that the settlement should cover not only the particular items 
 which had been the subject of controversy but also any and all 
 claims which might be presented in the future in connection with 
 the American use of French railroads during this period, and that 
 it should cover the use of French railroads by naval forces and Army 
 auxiliary services, such as the Red Cross, Young Men's Christian 
 Association, Knights of Columbus, Salvation Army^ and Jewish 
 Welfare Society. The contract as eventually signed finally disposed 
 of every claim or demand of every nature arising between the two 
 
70 UNITED STATES LIQUIDATION COMMISSION. 
 
 parties which was definitely connected with railroad transportations, 
 including claims for loss or damage to freight and damage to railroad 
 property. In other words, the railroad transportation settlement, 
 dated October 1, 1919,^^ is a full, final, and complete settlement be- 
 tween the United States on the one part, and the Republic of France 
 and the French railroads on the other part, for all claims of any 
 nature arising in connection with transportation by rail in France 
 prior to October 1, 1919, and France agrees to indemnify and save 
 America harmless against any such claims on the part of French 
 railroad companies. 
 
 The contract further provides that — > 
 
 On and after October 1, 1919, and until December 31, 1919, France will 
 furnish or cause the French railroads to furnish transportation over the 
 French railroads for the personnel, animals and freight of said forces at the 
 same rates at which, and on the same terms and conditions under which, the 
 said railroads shall, during the same ix^riod, furnish transportation for tlie 
 personnel, animals and freight of the French Army. 
 
 The payment to France of 434,985,389.73 francs settled all bills 
 for carrying and recarrying 2,000,000 men over the longest lines of 
 communication of any of the armies operating in France, including 
 their travel on leave. It settled the bills for carrying the American 
 Army of Occupation over French railroads to and from Germany, 
 and it settled the bills for transporting and handling over 15,000,000 
 tons of freight. This figure averages only slightly in excess of 200 
 francs for each man to cover all his travel by rail during his entire 
 stay in France; while the cost per ton per mile for handling the 
 freight is only about one-half of the corresponding cost per ton per 
 mile for the ocean transportation of the same materials. 
 
 FRENCH PORT DUES SETTLEMENT. 
 
 The port facilities of France are built by funds appropriated from 
 the national treasury. The chambers of commerce of the ports, how- 
 ever, assume responsibility for re-paying the treasury its investments, 
 and for administering and maintaining the facilities. Funds for this 
 purpose are raised by means of a charge on each vessel which enters, 
 known as "port dues" (Taxes de Peage). 
 
 Early in the war, national vessels of France and her Allies were 
 exempt from the tax, but on November 17, 1917, the exemption was 
 cancelled, and all vessels, French national and allied national, as well 
 as privately owned vessels, were charged the regular port dues. The 
 United States never made any current payments of these dues. Be- 
 fore the Commission went to Europe, however, the question of our 
 payment had been taken up by the French ambassador at Washington 
 
 » See Appendix XXIX for copy of railroad transportation contract, dated Oct 1, 1919. 
 between France and United States. 
 
UNITED STATES LIQUIDATION COMMISSION. 71 
 
 who had secured a general promise from our Government that they 
 should be paid. The American Expeditionary Forces had tried to 
 arrive at a temporary settlement, first with each port, then with the 
 French Government, but no settlement had been reached. 
 
 The different chambers of commerce had been presenting claims 
 for port dues to the American Expeditionary Forces without any 
 uniformity in the basis of calculating rates; some were very high, 
 and some were very low. We had dealt with the French Government 
 alone, and not with the port authorities, in arranging for our entries 
 into French ports; so, when the Commission took up the case, it 
 pressed the French Government to make a general settlement for 
 port dues and take over the responsibilities of the United States to 
 the separate chambers of commerce. Several methods of calculating 
 a lump-sum payment were suggested. The first was to have the total 
 expenses chargeable to the port-dues fund calculated for each port 
 for the period during which the port had been used by American 
 vessels, the United States paying a portion of that sum equal to the 
 ratio of her shipping to all other shipping at the port. This plan 
 was rejected by the French authorities. 
 
 The French proposed that we pay commercial rates, minus certain 
 exemptions for vessels carrying military personnel and munitions. 
 The total charges calculated on this basis would have been approxi- 
 mately 4,825,000 francs. This plan was rejected by us. 
 
 The water level had been raised at St. Nazaire, practically for our 
 sole benefit, and at French expense. On the other hand, we had put 
 in docking facilities at numerous ports which had K^en used by the 
 French and others as well as by our vessels. After a series of nego- 
 tiations, the French agreed to allow a reduction of 50 per cent from 
 commercial rates at Bordeaux and 40 per cent at all other ports. The 
 fees were calculated on this basis, and finally the French agreed to 
 accept a lump-sum payment of 3,000,000 francs to cover dues for 
 the entries of all vessels of the United States or vessels serving the 
 United States between April 6, 1917, and the complete evacuation of 
 France by American forces. The contract was signed October 1, 
 1919.40 
 
 It covered (a) port dues or tonnage dues, which are entry charges 
 based on tonnage of ships, tonnage of cargoes, and the number of 
 passengers landed; (h) the raising of water level; and (e) dredging 
 operations. There were excepted from the terms of the contract 
 such special charges as (a) pilot's fees; (b) fees for the use of cranes, 
 hangars, lighters, warehouses, railroad trackage, etc.; (c) bills for 
 coal, water, light, and other supplies; (d) repairs; (e) trimming 
 charges; and (/) port sanitary inspection and hospital fees. 
 
 *o See Appendix XXX for copy of contract dated Oct. 1, 1919, and evidencing the 
 general settlement of port dues with France. 
 
72 UNITED STATES LIQUIDATION COMMISSION. 
 
 We used 15 ports in France. At the 6 principal ones, the per- 
 centage of our commerce to that of the total entering after April 6, 
 1917. Avas as follows: At St. Xazaire, 60 per cent; at Bordeaux, 27 
 per cent ; at Nantes, 33 per cent ; at La Rochelle, 46 per cent ; at Brest, 
 53 per cent; at Marseille, 19 per cent. No current payments had 
 been made. 
 
 GENERAL SETTLEMENT WrPH THE FRENCH GOVERNMENT. 
 
 AVhen the Commission arrived in Paris, it found that the Ameri- 
 can Expeditionary Forces were paying in francs all bills rendered 
 against them by the several departments of the French Government 
 for supplies, equipment and material and for services, while France 
 was settling like bills rendered bj^ the American Expeditionary 
 Forces and the War Department of the United States through credits 
 extended by the Treasury Department of the United States. On 
 April 15, 1919, this practice was discontinued by direction of the 
 Commission, and an agreement was reached with the French Gov- 
 ernment, in terms of which invoices should be rendered by each 
 government against the other covering all bills, accounts, claims, 
 and demands of every nature whatsoever growing out of or con- 
 nected with the war, and these invoices should be checked, audited, 
 corrected, or approved, but held in abeyance unpaid until such time 
 as a final statement of account between the two Governments could 
 be prepared ; and the obligations of one Government were then to be 
 set off against d^e obligations of the other. 
 
 It was later agreed that this general settlement should embrace all 
 transactions arising between the 6th of April, 1917, and the 20th of 
 August, 1919, between the War Department of the United States and 
 the American Expeditionary Forces, on the one part, and the Re- 
 public of France, on the other part, and that all bills, accounts or 
 claims not presented on or before September 6, 1919, should be for- 
 ever barred. Pursuant to this arrangement, all possible pressure 
 was brought to bear by the Commission through the several services 
 of the Army and otherwise to have prepared and presented, before 
 September 6, proper bills, accounts and invoices for all amounts due 
 from France to us, and the results were gratifying. 
 
 Immediately following September 6, a series of conferences were 
 held between representatives of the several services of the Ameri- 
 can Army and representatives of the corresponding services of 
 the French Army, which were attended and directed by H. T. 
 Klein for the Commission. It was the purpose of these conferences 
 to adjust and reconcile all items of the long account. The differences 
 which could not be adjusted in this way were taken up by the Com- 
 mission directly with M. Edouard Boulanger, Controleur de I'Ad- 
 
UNITED STATES LIQUIDATION COMMISSION. 73 
 
 ministration de I'Armee, who was designated by the French Govern- 
 ment to act in this capacity. After numerous prolonged conferences, 
 satisfactory adjustments were reached, an account was stated, and 
 two contracts were drawn, evidencing a final and complet^e settle- 
 ment.*^ 
 
 In the contract of general settlement, dated November 25, 1919, 
 evidencing full, final, and complete settlement of all accounts, initi- 
 ated, arising, or accruing between the 6th day of April, 1917, and 
 the 20th day of August, 1919, in respect of transactions between the 
 War Department of the United States and the American Expedi- 
 tionary Forces on the one part and the Republic of France on the 
 other part, with four enumerated exceptions, the releasing clause 
 reads as follows : 
 
 The Republic of France does hereby fully, completely, and in all things re- 
 lease and discharge' the United States of America, and the United States of 
 America does hereby fully, completely, and in all things release and discharge 
 the Republic of France, in respect of the transactions aforesaid, from all bills, 
 accounts, claims, obligations, demands, rights, causes of action, suits, and con- 
 troversies, of every nature whatsoever, which either party now has against the 
 other, or which may hereafter arise, whether by reason of or in anywise inci- 
 dent to or growing out of the delivery or contract for the delivery of materials, 
 supplies, or equipment, or for services rendered or contracted to be rendered, 
 or for the occupation and use of all public properties of France and all damages 
 thereto or otherwise, initiated, arising, or accruing during the said war period 
 between the said War Department on the one part and the Republic of France 
 on the other part. 
 
 The contract recites that the total of all franc credits due by each 
 party to the other shows a net balance in favor of France of 1,488,- 
 619,027.52 francs, which America agrees to pay to France; and the 
 total of all dollar credits due by each party to the other shows a net 
 balance in favor of America of $177,149,866.86, which France agrees 
 to pay to America. The question of the form of payment and the rate 
 of exchange is now being negotiated between the French representa- 
 tives in the United States, on the one part, and the representatives of 
 the United States War and Treasury Departments, on the other part. 
 
 The contract further provides as follows : 
 
 Article II. Nothing hereinbefore contained shall be held or construed to in 
 anywise annul, alter, modify, or affect the obligations of France held by America 
 
 *i See Appendix XXXI for (1) copy of the contract dated Nov. 20, 1919, between 
 the War Department of the United States and France evidencing the general settlement 
 of all mutual accounts, claims, and demands arising in Europe, and (2) a copy of the 
 balance sheet used as the basis of the settlement; and Appendix XXXII for (1) the 
 contract of general settlement dated Nov. 25, 1919, which concludes all matters outstand- 
 ing between the War Department of the United States and France, whether arising in 
 Europe or not, with the exception of four matters specifically enumerated, and (2) a 
 copy of the balance sheet used as the basis of the settlement. The accountants' records 
 relating to the settlement are in the files of the Commission. 
 
74 UNITED STATES LIQUIDATION COMMISSION. 
 
 or the obligations of either party hereto arising out of the following special con- 
 tracts or agreements, namely: 
 
 (a) The contract between America and France dated August 1, 1919, where- 
 by America sold and France purchased certain properties therein referred to, 
 France agreeing to pay therefor the sum of four hundred million ($400,000,- 
 000) dollars, with interest thereon, at the time and under the terms mentioned 
 therein ; 
 
 (&) The contract between America and France for the settlement of rail- 
 road transportation and other claims, dated October 1, 1919, in which America 
 agrees to pay France the sum of four hundred and thirty-four million nine hun- 
 dred eighty-five thousand three hundred eighty-nine and TS.IXK) (frs. 434,- 
 985,389.73) francs; 
 
 (c) The contract between America and France for the settlement of all port 
 dues and similar claims, dated October 1, 1919, in which America agrees 
 to pay France the sum of three million (frs. 3,000,000) francs; 
 
 (d) All contracts, agreements, or arrangements entered into between America 
 and France for or in connection with sales made by America to France in the 
 United States since November 11, 1918. • 
 
 Aeticle III. This contract shall not operate as a release or modification of 
 or in anywise affect whatever claim France may now have against America 
 growing out of sfervices rendered by France to America during the war period in 
 connection with the ocean transportation of American troops. 
 
 The importance, from every point of view, of this comprehensive 
 and far-reaching settlement between the two Governments can not 
 be too strongly emphasized. Innumerable disputed accounts would 
 almost certainly have arisen during succeeding years and they might 
 have become a source of bitter controversy. 
 
 Since the consummation of this general settlement France has 
 presented certain claims aggregating' more than $10,000,000. These 
 were carefully considered by the Commission in conference with 
 the French representatives, and the conclusion was reached by the 
 Commission that they should be declined and under no circumstances 
 should the general settlement he re-opened. The accounts are now 
 clear and the books of both parties are balanced. 
 
 INDEMNIFICATION OF AMERICA BY FRANCE AGAINST ALL CLAIMS OF 
 NATIONALS FOR TORTS, WORKMEN'S COMPENSATION, RENTS, REQUISI- 
 TIONS, AND DAMAGES. 
 
 The general settlement made with France aflFords America no pro- 
 tection against tort claims of French nationals, claims of nationals 
 based on the workmen's compensation act, or claims of nationals for 
 rents, requisitions, or other damages. These claims were handled 
 in France by the 'Renting, Requisition, and Claims Service of. the 
 American Expeditionary Forces. 
 
 AVhen the Commission took up its w^ork it found that the Renting, 
 Requisition, and Claims Service had an admirable organization, 
 functioning under the direction of Col. Blanton Winship, the staff of 
 
UNITED STATES LIQUIDATION COMMISSION. 75 
 
 officers being composed largel}^ of men drawn from such civilian 
 ;;!irsuits as law, architecture, and engineering. The Commission 
 deemed it the part of wisdom not to interfere unduly with this 
 work, which was being well done; but in a general way, through 
 Col. Winship and the members of his staff, to keep in touch with 
 the Avork, and, by means of informal conferences, to define the general 
 policies to be carried into effect. 
 
 This service had been organized in the spring of 1918, pursuant 
 to the act of Congress of April 18, 1918, which conferred upon the 
 War Department of the United States the right to pay indemnities 
 for damages caused by the American forces in Europe to persons 
 and property of friendly nationals, providing such claims "should 
 be payable according to the law or practice governing the military 
 forces of the country in which they occur." 
 
 The activities of this service embraced the work of (1) billeting 
 troops and settling claims for damages to billets {degats) ; (2) rent- 
 ing lands and buildings, and paying the rentals; (3) requisitioning 
 real and personal property; (4) examining and settling all claims for 
 personal injuries and damages to property; (5) handling admiralty 
 claims arising in European waters; and (6) to a limited extent, 
 under the direction of the Commission, investigating and adjust- 
 ing claims for personal injuries or loss of life, under the French 
 workmen's compensation act, of the laborers employed by the mili- 
 tary forces of the United States. 
 
 This service paid out 50,108,091 francs for billeting American 
 troops in France, and the accounts show 8 centimes (or, at the rate 
 of 10 francs to the dollar, less than 1 cent) per day per man as the 
 average cost of billeting our troops. This European method of 
 quartering of troops is much cheaper than tenting the men. Under 
 the Act of April 18, 1918, the service has investigated and settled 
 38,299 claims, in which the total amount claimed was approximately 
 15,000,000 francs, paying in complete settlement a total of 8,337,- 
 719.07 francs. It has investigated and declined 13,446 claims under 
 this same act, where the amount claimed exceeded in all 10,000,000 
 francs. In the case of 552 of the claims w^hich were disallowed, a 
 liability was admitted by the service, but the claimant refused to 
 accept the amount offered in settlement. This service has paid, for 
 the use and occupation of real estate, 38,421,780 francs, and for 
 damage to real estate, 9,623,309 francs. 
 
 The work of the service was carried on in 72 Departments of 
 France, in England, and other places where the American Army 
 operated. The number of its personnel has changed considerably 
 from time to time, being highest in June, 1919, when the staff con- 
 sisted of 663 officers, 37 field clerks, and 1,065 enlisted men, organ- 
 ized into 52 companies. 
 
76 UNITED STATES LIQUIDATION COMMISSION. 
 
 The work has been well done, and while the total amount paid has 
 been large, no individual case was settled without the careful investi- 
 gation of a competent officer. The total overhead expense of main- 
 taining the service was estimated at $3,000 a day on September 1, 
 1919, and at 25.000 francs per day on December 1. 1919. 
 
 While the Renting, Requisition, and Claims Service made a deter- 
 mined drive to dispose finally of all claims within its jurisdiction by 
 the time the other matters in France should be liquidated, it was 
 found that ncAv claims were being constantly presented, and claims 
 which had been declined because of excessive demands, or otherwise, 
 were being re-opened. The service had, on December 1, 1919, claims 
 against the American Expeditionary Forces for rentals where the 
 rate was fixed, amounting to more than 1,500,000 francs, and claims 
 for damages to leased propert}' estimated at 4.000.000 francs. It 
 had on file unsettled claims for use of and damage to requisitioned 
 property estimated at 1,500,000 francs. There were a few unpaid 
 billeting claims and claims under the workmen's compensation act 
 for over 500,000 francs. Many of the matters which had not yet 
 been concluded at this time were those involving peculiarly difficult 
 or delicate problems where the parties had been unable to reach an 
 amicable and satisfactory adjustment. 
 
 In order to avoid the necessity of maintaining the Renting, Re- 
 quisition, and Claims organization in France for an indefinite period 
 to investigate and adjust pending claims, as well as dormant ones 
 which were constantly being presented, the Commission co-operating 
 with the commanding general of the American Expeditionary Forces, 
 began negotiations with the French Government as early as August, 
 1919, with a view to inducing it to step into America's shoes and 
 take over these investigations and settlements. It was urged tliat, 
 since the French Government already had an organization which 
 was engaged throughout France in handling claims of this character 
 and would continue in that work, there would be a very small addi- 
 tional overhead expense connected with their taking up chiims in 
 behalf of America. It was made clear that it was not our purpose 
 merely to save money by foisting upon France an expense whicli 
 should be borne by America ; but that, because America would be 
 eliminating a large overhead expense, she could afford to make to 
 France a full and even liberal payment in order to induce France 
 to undertake this work. 
 
 After careful study of the problem and numerous conferences by 
 authorized representatives of the French Government appointed for 
 that purpose, on the one hand, and by the Commission, the command- 
 ing general, American Expeditionary Forces, and the Director of 
 the Renting, Requisition, and Claims Service, on the other hand, an 
 agreement was reached on December 1, 1919, under the terms of 
 
UNITED STATES LIQUIDATION^ COMMISSIONS. 77 
 
 which the French took over all obli^rations which our Rentino:, Re- 
 quisition, and Claims Service had outstanding on that date.*^ 
 The contract provides, among other things : 
 
 France hereby substitutes itself for America in reference to and guarantees 
 the latter against all claims, demands, obligations, rights, actions, suits, and 
 controversies of every nature arising in France during the said war period 
 which any inhal)itant or any person subject to the sovereignty of France or 
 any organization, association, or corporation, commune, or department of 
 France may now have or which may hereafter accrue for damage to, use, or 
 loss of property, or injury to or death of persons, caused by or resulting from 
 acts or omissions of members of the American military forces or any one con- 
 nected therewith (not including menrbers of the American welfare organiza- 
 tions) during the said war period — that is, between the 6th day of April, 1917, 
 and the 31st day of December, 1919. 
 
 America in turn agrees to pay France — 
 
 in cash the sum of twelve million ( 12.0()(),(K)0 ) francs (hereinafter designated 
 "minimum payment "). If upon the 31st day of December, 1923, the aggregate 
 of all payments made by France to claimants on account of the claims assumed 
 by it exceed such minimum payment, then in such event America agrees on 
 demand to then jiay to France such excess : Provided, hoicever, That such 
 additional payment by America shall in no event exceed the sum of six million 
 (0.000,000) francs. 
 
 It will be noted that the amount paid by France to clainia7its 
 only is taken into account and no allowance is made for overhead and 
 administrative expenses. 
 
 Attention is called here to the status in France of claims arising 
 out of " acts of war" (faits de guerre). Neither the Renting, Requi- 
 sition, and Claims Service nor the Commission has ever expressed 
 any intention of honoring such claims, nor has France or her na- 
 tionals ever pressed any claim against America for damages arising 
 in this way. But it is worthy of note that France, by an act of April 
 IT, 1919, has provided for payments to her own nationals for damages 
 resulting from faits de guerre. This was done for the purpose of 
 equalizing the burdens of the war's destruction in favor of the in- 
 habitants of the devastated regions and is an act of grace on the 
 part of the French Government. The first article of the act reads, 
 •' The Republic proclaims the equality and the solidarity of all 
 French citizens with respect to the charges of Avar." It is also worthy 
 of note that the act of Congress of April 18, 1918, under which the 
 Renting, Requisition, and Claims Service has been settling tort and 
 similar claims provides that " claims under this statute shall not be 
 approved unless they would be payable according to the law or prac- 
 tice governing the military forces of the country in which they 
 
 « See Appendix XXXIII for copy of the contract between the United States and 
 France, evidencing the assumption by France of all claims of French nationals against 
 America for torts, employer's liability, rents, and requisitions. 
 
78 UNITED STATES LIQUIDATION COMMISSION. 
 
 Attention is also invited to the fact that the treaty of peace be- 
 tween the Allied and Associated I^owers, on the one part, and (xer- 
 man}^, on the other part, signed at Versailles, June 28, 1919. reads in 
 part (art. 232) as follo^Ys: 
 
 The Allied and Associated Goveniinems ieco;iiiize tliat tlie resonrces of Ger- 
 many are not adequate, after talvinjr into account pernisment diminutions of 
 sucli resources whieli will result from othej- provisions of the present treaty, 
 to make complete restoration for all such losses and damajres. 
 
 Part VIII, Annex I, paragraph 9, of the treaty provides in sub- 
 stance that Germany shall assume liability for damage in respect of 
 all property wherever situated belonging to an}^ of the Allied or 
 Associated States or their nationals, which has been carried off, 
 seized, injured, or destroyed hy the acts of Germany or her allies on 
 land, on sea, or from the air. 
 
 Much of the destruction in the devastated regions of northern 
 France is, of course, due to acts of war on the part of the armies of 
 France and her allies, as well as to acts on the pai-t of the armies 
 of Germany and her allies. As above noted, France has, by the act of 
 April 17, 1919, assumed, as between it and its nationals, the burden of 
 making reparation because of such destruction without respect to the 
 army responsible for it. 
 
 It is conceivable that at some future time a French administration 
 may feel justified in calling upon America for contribution in dis- 
 charging so much of this burden as may not be covered by German 
 reparation payments, in the ratio which the destruction wrought by 
 the American Army bears to the whole destruction. Attention is 
 invited to the fact that the releasing clause of the contract of De- 
 cember 1, 1919, is clearly broad enough to estop France from ever 
 presenting and pressing such a claim. 
 
 SUMMARY. 
 
 1. The total sales of the War Department property in Europe 
 made by this Commission aggregate $822,923,225.82. Of this, 
 $400,000,000 is evidenced by French interest -bearing bonds now on 
 deposit with the United States Treasurer, representing the considera- 
 tion for the bulk sale in accordance with the contract of August 1, 
 1919, under which all of the United States War Department prop- 
 erty in France then remaining unsold was disposed of. 
 
 2. The settlement with France by which America's claims against 
 French railroads were set off against all transportation claims of 
 every nature of France and French railroads against America left 
 a net balance due France by America of 434,985,389.73 francs. 
 
 3. All claims of France and her several chambers of commerce 
 for work done at ports for our benefit and for port dues were as- 
 sumed by France, on America's agreeing to pay 3,000,000 francs. 
 
UNITED STATES LIQUIDATION COMMISSION. 79 
 
 4. All claims of any person, organization, association, corporation, 
 commune, or department of France against America for damage to, 
 use, or loss of property or injury to or death of persons have been 
 assumed by France, upon the agreement by America to pay France 
 the sum of 12,000,000 francs. 
 
 5. The general settlement with France of November 25, 1919, 
 finally and for all time settled all claims and controversies not above 
 or therein enumerated between France and the War Department of 
 the United States, France by the terms of said contract acknowledg- 
 ing an indebtedness to America (in addition to the $400,000,000, 
 above mentioned) of $177,149,866.86, and America acknowledging an 
 indebtedness to France of 1,488,619,027.52 francs in addition to the 
 items mentioned in the foregoing paragraphs, numbered 2, 3, and 4. 
 
 By reason of these several transactions, America has avoided in- 
 curring the enormous overhead expense incident to maintaining large 
 organizations in France for an indefinite period, and has been en- 
 abled speedily to withdraw from France all of the representatives of 
 the War Department and of the Army, leaving behind a clear record 
 and carrying with her the confidence and good will of France and 
 of her people. 
 
 BELGIAN SETTLEMENT. 
 
 Copy of the general settlement agreement entered into with Bel- 
 gium on November 7, 1919, will be found in Appendix XV; reference 
 to this settlement will be found on page 33 of this report. 
 
 ITALIAN SETTLEMENT. 
 
 On August 13, 1919, John H. Bay, representing Chester W. 
 Cuthell, as special representative of the Secretary of War, entered 
 into an agreement with Federico Brofferio, representative of the 
 inter-ministerial committee of the Italian Government for the read- 
 justment of the industries of war, wherein Italy agreed to pay to 
 America the sum of $5,200,000, for picric acid (not delivered), 
 spruce, fir, and nitrocellulose powder, and America waived claims for 
 trinitrotoluol and cotton linters.*^ 
 
 In December, 1919, Harry T. Klein (formerly lieutenant colonel, 
 judge advocate) was sent to Italy as the Commission's repre- 
 sentative to negotiate a general settlement of all accounts and claims 
 with Italy arising in Europe. Gen. Albricci, the minister of war, 
 appointed Maj . Gen. Angelo Modena as the Italian representative to 
 consummate this general settlement. After repeated conferences be- 
 tween the Commission's representative and Gen. Modena and the 
 
 *3 See Appendix XXXIV for copy of contract dated Aug. 13, 1919, between Italy and 
 the United States War Department. 
 
80 UNITED STATES LIQUIDATION COMMISSION. 
 
 representatives of the Italian treasury department, aviation corps, 
 minister of transportation, and the ordnance department, an agree- 
 ment was finally reached in February, 1920, that the net balance due 
 and unpaid in favor of Italy, amounted to the sum of 29,106,546.75 
 lire. Copies of the proposed contract were furnished by Gen. 
 Modena to the ministers interested, and Gen. Modena executed this 
 contract on February 18, 1920, under authority conferred upon him 
 at a meeting of the council of ministers.** 
 
 This contract contains not only a complete release of all claims of 
 the Italian Government against the United States War Depart- 
 ment, arising in France, Italy, and regions adjoining Italy, between 
 April 6, 1917, and December 31, 1919, but is also a complete settle- 
 ment and release of the claims of all Italian nationals for injury to 
 l^ersons or damage to property caused by the acts of the military 
 forces of America, between the dates mentioned and occurring any- 
 where in France, Italy, and regions adjoining Italy. 
 
 The larger part of the net balance due Italy was composed of the 
 aviation account, which consisted of items for aviation material fur- 
 nished by Italy and services rendered in the training of American 
 aviators. This account was carefully investigated by a board of 
 aviation officers and recommended by them and by Gen. Patrick, 
 in charge of aviation in France. 
 
 Another large item of the account as finally allowed was for 
 ordnance material aggregating approximately 6,000,000 lire. Four 
 requisitions had been placed with Italy for ordnance material, 
 artillery ammunition, etc., Austrian and Italian, to be sent to the 
 United States for experimental purposes. After this material was 
 concentrated by Italy for delivery, the prices quoted were found to 
 be unusually high and attempts were made by our ordnance de- 
 partment, through military channels, to secure a reduction in prices 
 or a cancellation of the requisitions in question, without success. The 
 Commission's representative, after several conferences with Gen. 
 Modena and Gen. Cortesa, chief of the Italian ordnance department, 
 succeeded in securing a cancellation of two of these ordnance requi- 
 sitions without payment of any indemnity, and secured a reduction 
 of 60 per cent on Austrian material actually delivered and 20 per 
 cent on Italian material actually delivered under the two remaining 
 requisitions; resulting in a saving of approximately 6,000,000 lire 
 to the United States on the price of the material accepted, at the 
 then existing rate of exchange. No indemnity whatever was paid 
 for material not accepted. 
 
 Another large item of the account was for subsistence stores and 
 material furnished the American troops by Italy, which under an 
 
 ** See Appendix XXXV for copy of contract of general settlement dated Feb. 18, 
 1920, between the United States War Department and the Kingdom of Italy. 
 
UNITED STATES LIQUIDATION COMMISSION. 81 
 
 aofreement of the chief of the American Military Mission in Italy 
 made in 1918, were to be returned in kind. Italy had repeatedly re- 
 fused to accept a cash settlement of this account. However, after 
 several consultations with Gen. Modena and his advisers, he finally 
 agreed to accept a cash settlement of this subsistence account on sub- 
 stantially the price basis of what it would cost the United States 
 to lay these articles down in Italy. This account approximated 
 5,000,000 lire. 
 
 The balance of the Italian account consisted of items for miscel- 
 laneous material supplied to our troops, railroad transportation for 
 troops, and supplies, and the sum paid Italy for indemnifying 
 America against the claims of Italian nationals. There were a small 
 number of R. R. & C. claims remaining undisposed of, and a number 
 of cases which we were unable to settle directly with the claimants on 
 account of disagreement as to liability or the amount which should 
 be paid. Italy assumed all these outstanding claims for 180,000 lire 
 (less than $15,000, at current rate of exchange when the contract was 
 signed), which is regarded as an extremely satisfactory settlement 
 in the interest of the United States War Department. 
 
 The American claims against Italy, amounting to 4,669,974.71 lire, 
 were allowed in their entirety by Italy. 
 
 The only Italian item arising in Europe left unsettled by this con- 
 tract is the American claim against Italy for copper ingots, shipped 
 to Italy for the electrification of the Modane Railroad, amounting 
 approximately to $207,975. This claim was held in abeyance pending 
 a decision of the Inter-allied Reparations Commission, to whom it 
 was referred on the suggestion of Gen. Bliss for decision, on the 
 question of the distribution of the expenses for such electrification 
 and w^hat countries should pay for such improvement. 
 
 LUXEMBOURG CLAIMS. 
 
 Incidental to the advance and withdrawal of our Army of Occu- 
 pation, a large number of claims arose in the Grand Duchy of Lux- 
 embourg. Many of these were presented by nationals and were dis- 
 posed of by the Renting, Requisition, and Claims Service. Others, 
 presented by the Luxembourg government, cover the use, occupation, 
 and damage to buildings, highways, and other public property. 
 The railroads of Luxembourg presented claims covering services ren- 
 dered in the transportation of our troops. All of these claims (not 
 disposed of by the Renting, Requisition, and Claims Service) aggre- 
 gate approximately 3,000,000 francs. 
 
 Certain German war material taken by our Army of Occupation 
 in Luxembourg, in the course of its advance, has already been dis- 
 183176—20 6 
 
82 UNITED STATES LIQUIDATION COMMISSION. 
 
 posed of. This Commission has asserted, in behalf of the United 
 States, ownership of German-built railroad tracks located in Luxem- 
 bourg and reduced to possession by our Army of Occupation in the 
 course of its advance. This Commission has proposed to the Luxem- 
 bourg authorities that the United States will sell and deliver to it 
 all of its interest in these railroad tracks, in full satisfaction of all 
 claims which the Grand Duchy of Luxembourg may have against 
 the United States, of every nature whatsoever, and the undertaking 
 on the part of the Grand Duchy to indemnify and save harmless the 
 United States against all claims ^^hich the railroads and nationals of 
 Luxembourg may have against the United States. It is believed 
 that the settlement will be reached on the basis proposed. . 
 
 CONCLUSION. 
 
 Some conception ®f the Commission's task can be formed from (a) 
 the statement of amounts involved in the settlements negotiated and 
 actually consummated by and under the direction of the Commission 
 of mutual accounts and claims between the United States War De- 
 partment, on the one part, and the Allied Governments and their 
 nationals, on the other part (which settlements were, where possible, 
 consummated through set-offs without cash payments), and (?>) the 
 amount of sales of property made by the Commission, as follows : 
 
 Amounts involved in settlements : *° 
 
 Settlements with France $748,392,004.82 
 
 Settlements with Great Britain 112, 996, 912. 16 
 
 Settlements with Belgium 2, 279, 827. 12 
 
 Settlements with Italy 12, 620, 173. 75 
 
 Settlements with individuals, associations, 
 
 and others 17,427,175.41 
 
 Total amount involved in settlements __ 893, 716, 093. 26 
 Amounts of sales : " 
 
 Bulk sale to France $400,000,000.00 
 
 Other sales, stated in dollars 377, 905, 193. 23 
 
 Other sales, stated in francs and converted __ 45, 018, 032. 59 
 
 Total amount of all sales 822,923,225.82 
 
 The Commission was created February 11, 1919. The two remain- 
 ing commissioners are tendering their resignations on this the 31st 
 day of May, 1920. The total expenses incurred and disbursements 
 
 « These figures are approximate but are understated, inasmuch as many claims with- 
 drawn, reduced, or disallowed are not included. 
 
 *« All conversions into dollars, for the purpose of this statement, have been made at 
 the normal rate of exchange. 
 
UNITED STATES LIQUIDATION COMMISSION. 83 
 
 made by the Commission aggregate $222,883.17.*' These expendi- 
 tures are a trifle less than thirteen one-hundred-thousandths 
 (0.00013) of the amounts involved in settlements made and sales 
 negotiated by the Commission. 
 
 Respectfully submitted, 
 
 Edwin B. Parker, 
 Chairman, United States Liquidation Oom/mission — 
 
 War Department. 
 Washington, D. C, May 31, 1920. 
 
 *' See Appendix XXXVI for statement of expenses and disbursements of the United 
 States Liquidation Commission — War Department from date of organization, February 
 11, 1919, to May 31, 1920, inclusive. 
 
APPENDIX 
 
 TO THE 
 
 REPORT OF THE UNITED STATES 
 LIQUIDATION COMMISSION 
 
 WAR DEPARTMENT 
 
 EDWIN B. PARKER. Chairman 
 
 85 
 
CONTENTS. 
 
 Page. 
 
 I. Acts of Congress approved May 10, 1918, and July 9, 1918 89 
 
 II. Section 3 of Act of Congress approved March 2, 1919 90 
 
 III. General Orders, No. 24, War Departm-ent, February 11, 1919___ 90 
 
 IV. General Orders, No. 40, War Department, March 19, 1919 92 
 
 V. General Orders. No. 18, headquarters S. O. S., A. E. F., April 
 
 1, 1919 93 
 
 VI. The categories . :l 95 
 
 VII. Categorical summary of inventories of American Expeditionary 
 
 Forces' property 100 
 
 VIII. Categorical recapitulation of American Expeditionary Forces' 
 
 property in France 101 
 
 IX. Form of receipt given by French 103 
 
 X. Bulk sale contract to France, August 1, 1919 103 
 
 XI. Letter from Mr. Hoover to Judge Parker 111 
 
 XII. Liberated nations and their commercial organizations 113 
 
 XIII. Sales of animals in American Expeditionary Forces 113 
 
 XIV. Sales Charts I, II, and III 114 
 
 XV. Contract with Kingdom of Belgium' 118 
 
 XVI. Sale of motor stocks in Germany 122 
 
 XVII. Installations in England 130 
 
 XVIII. British artillery settlement 131 
 
 XIX. Australian wool settlement 136 
 
 XX. Chateauroux tank plant settlement, August 8, 1919 136 
 
 XXI. Final contract of settlement of Chateauroux tank project, 
 
 October 4, 1919 138 
 
 XXII. Extrfict from Cuthell-Inverforth agreement of May 10, 1919, in 
 
 re Liberty motors 142 
 
 XXIII. Settlement of British interest claim 143 
 
 XXIV. Liquidation of nitrate pool 145 
 
 XXV'. Disposition of private claims 15U 
 
 XXVI. Disposition of French-American artillery under Stettinius- 
 
 Loucheur arrangement 150 
 
 XXVII. French artillery and ammunition agreement, August 28, 1919-- 151 
 
 XXVIII. French air-service settlement, November 8, 1919 156 
 
 XXIX. French railroad transportation settlement, October 1, 1919 15') 
 
 XXX. Port dues settlem-ent with France, October 1, 1919 16^ 
 
 XXXI. Settlement with France of European accounts, November 20, 
 
 1919 165 
 
 XXXII. General settlement with France, November 25, 1919 172 
 
 XXXIII. Renting, Requisition, and Claims settlement with France, De- 
 
 cember 1, 1919 179 
 
 XXXIV. Cuthell-Brofferio agreement with Italy, August 13, 1919 182 
 
 XXXV. General settlement with Italy. February 18, 1920 185 
 
 XXXVI. Statement of expenditures , 191 
 
 87 
 
APPENDIXES. 
 
 APPENDIX I. 
 
 Act of Congke8>s, Appuoved May 10, 1918. 
 
 An act authorizing the President during the existing emergency to sell supplies, materials, 
 equipment, or other property, heretofore or hereafter purchased, acquired, or manufac- 
 tured by the United States, in connection with, or incidental to, the prosecution of 
 the war. 
 
 Be it enacted hy the Senate and House of Representatives of the United States 
 of America in Congress assembled, ,That during the existing emergency the 
 President be, and he hereby is, authorized, in his discretion, and upon such 
 terms as he shall deem expedient, through the head of any executive depart- 
 ment, to sell any supplies, materials, equipment, or other property heretofore 
 or hereafter purchased, acquired, or manufactured by the United States in 
 connection with, or incidental to, the prosecution of the war, to any person, 
 partnership, association, or corporation, or to any foreign State or Government 
 engaged in war against any Government with which the United States is at 
 war ; and any moneys received by the United States as the proceeds of any such 
 sale shall be covered into the Treasury of the United States and a full report 
 of tlie same shall be forthwith submitted to Congress. 
 
 Extract from Act of Congress Approved July 9, 1918. 
 Sale of war supplies: That the President be, and he hereby is, authorized, 
 through the head of any executive department, to sell, upon such terms as the 
 head of such department shall deem expedient, to any person, partnership, asso- 
 ciation, corporation, or any other department of the Government, or to any 
 foreign State or Government, engaged in war against any Government with 
 which the United States is at war, any war supplies, material and equipment, 
 and any by-products thereof, and any building, plant, or factory, acquired since 
 April sixth, nineteen hundred and seventeen, including the lands upon which 
 the plant or factory may be situated, for the production of such war supplies, 
 materials, and equipment which, during the present emergency, may have or 
 may hereafter be purchased, acquired, or manufactured by the United States : 
 Provided further, That sales of guns and ammunition made under the au- 
 thority contained in this or any other act shall be limited to sales to other 
 departments of the Government and to foreign States or Governments engaged 
 in war against any Government with which the United States is at war, and 
 to members of the National Rifle Association and of other recognized associa- 
 tions organized in the United States for the encouragement of small-arms tar- 
 get practice: Provided further, That a detailed report shall be made to Con- 
 gress on the first day of each regular session of the sales of any war supplies, 
 material, lands, factories, or buildings, and equipment made under the author- 
 ity contained in this or any other Act, except sales made to any foreign State 
 or Government engaged in war against any Government with which the United 
 
 89 
 
90 UNITED STATES LIQUIDATION COMMISSION. 
 
 States is at war, sliowiiig the character of the articles sold, to whom sold, the 
 price received therefor, and the purpose for which sold : Provided, That any 
 moneys received by the United States as the proceeds of any such sale shall be 
 deposited to the credit of that appropriation out of which was paid the cost 
 to the Government of the property thus sold, and the same shall innnediately 
 become available for the punwses named in the original appropriation. 
 
 APPENDIX II. 
 
 Section 3 of the Act of Congress Approved March 2, 1919. 
 
 That the Secretary of War, through such agency as he may designate or 
 establish is empowered, upon such terms as he or it may determine to be in the 
 interest of the United States, to make equitable and fair adjustments and agree- 
 ments, upon the termination or in settlement or readjustment of agreements 
 or arrangements entered into with any foreign Government or Governments 
 or nationals thereof, prior to November twelfth, nineteen hundred and eighteen, 
 for the furnishing to the American Expeditionary Forces or otherwise, for war 
 purposes, of supplies, materials, facilities, services or the use of property, or 
 for the furnishing of any thereof by the United States to any foreign Govern- 
 ment or Governments whether or not such agreements or arrangements have 
 been entered into in accordance with applicable statutory provisions; and the 
 other provisions of this act shall not be applicable to such adjustments. 
 
 APPENDIX III. 
 
 ( General Orders. 1 War Department, 
 
 No. 24. J Washington, February 11, 1919. 
 
 UNITED STATES LIQUIDATION COMMISSION WAR DEPART MK XT. 
 
 1. The term " war " as used herein shall be taken to mean the pi-esent war 
 between the United States of America and the nations associated with it on 
 the one part and the Imperial German Government and its allies on the other 
 part. The term *' United States " as used herein shall be taken to mean the 
 United States of America. 
 
 2. In order to facilitate the speedy disposition of all claims of every char- 
 acter between the United States on the one part and the nations associated with 
 it in the war and their nationals on the other part, growing out of or in any- 
 wise connected with the war ; and in order to promptly dispose of all property 
 or interest in property of whatsoever kind or nature belonging to the United 
 States, acquired, constructed or manufactured in connection with or incidental 
 to the war and now located beyond its territorial limits ; and in order that the 
 interests of the United States and its said associates shall be mutually sub- 
 served ; by direction of the President there is hereby created and constituted 
 a "United States Liquidation Commission — War Department," as the central 
 agency to supervise and direct the disposition of all such claims and property, 
 clothed with the broad powers, charged with the duties and constituted as here- 
 inafter prescribed, to be exercised in cooperation with the commander in chief 
 of the American Expeditionary forces. 
 
UNITED STATES LIQUIDATION COMMISSION. 91 
 
 ;•. Tlie said Coimnission shall possess the following powers: 
 id) To (leteriiiiiie, adjust, modify, compromise, and settle all contracts, obli- 
 Lf.irioiis, commitments, claims, or demands of every nature whatsoever within 
 the .inrisdiction of the War Department (1) between the United States and any 
 loreign State or Government or the nationals thereof; or (2) asserted by the 
 United States against any foreign State or Government or the nationals thereof; 
 or (8) asserted by any foreign State or Government or the nationals thereof 
 against the United States; provided such contracts, obligations, commitments, 
 claims, or demands arise out of, are connected with or incident to the participa- 
 tion of the United States in tlie war. 
 
 (b) To sell or otlierwise dispose of, upon such terms as it shall determine, any 
 property of whatsoever kind or nature acquired, constructed or manufactured 
 by the United States in connection with, or incidental to, the participation of 
 the United States in the war, ahd now located beyond the territorial limits of 
 the United States and its possessions. 
 
 (c) To employ and fix the compensation of such secretaries, counsel, agents, 
 factors, and employees as it shall deem necessary for the proper exercise of its 
 powers and the performance of its duties. 
 
 (r/) To adopt rules and regulations governing its procedure and the conduct 
 of its business. 
 
 (e) To establish and nmintain offices at such place or places as it may deem 
 expedient and necessary for the proper performance of its duties. 
 
 (/) To exercise all other powers necessary or incidental to the proper per- 
 formance of its duties as herein defined. 
 
 4, Payments of money to the United States made pursuant to the Commis- 
 sion's action shall be transferred to appropriate officials of the War Department, 
 or of the American Expeditionary Forces, by whom the same shall be covered 
 into the Treasury or deposited to the credit of appropriations as required by 
 law or regulation. 
 
 o. The Commission shall cause to be kept a full and complete record of all 
 its proceedings, a copy of which shall be transmitted to the Secretary of War 
 each montli, together with such other reports as the Secretary of War may from 
 time to time prescribe or as may be prescribed by applicable provisions of 
 statutes. 
 
 6. The act of the majority of the members of the Commission, when in session 
 as such, shall be deemed to be the act of the Commission, or, when not in ses- 
 sion, if such action is assented to in writing by a majority of the members of 
 the Commission, it shall be deemed to be the act of the Commission. 
 
 7. The powers hereby eonferred and the duties hereby prescribed may be 
 exercised and performed by the Commission either directly or through existing 
 or hereafter created agencies of the American Expeditionary Forces or of the 
 War Department of the United States or through agencies created by the Com- 
 mission. All existing agencies performing any of the duties and exercising any 
 of the powers herein dealt with shall, unless otherwise directed by the Commis- 
 sion, continue to function as heretofore. While the Commission shall have com- 
 plete and exclusive jurisdiction and control over the a:ctivities of all such 
 agencies with respect to the subject matter hereof, it is not required to function 
 directly in relation to such matters, activities, and transactions as in its opinion 
 should be dealt with by such agencies. 
 
 8. The American Expeditionary Forces and all other agencies of the War 
 Department will furnish the Commission such reports and information as it 
 may request, and upon its request furnish it with such officers, personnel, trans- 
 portation and other facilities as it may require. 
 
92 UNITED STATES LIQUIDATION COMMISSION. 
 
 9. The findings and decisions of the Commission shall be final and con- 
 clusive as to all matters within its jurisdiction. 
 
 10. L'ntil further ordei-ed the Commission shall be composed of fc»ur mem- 
 bers, as follows: Edwin li. Parker (chairman), Brig. Gen. Charles G. Dawes, 
 H. H. Johnson, Henry F. Mollis. Additions may be made or vacancies filled 
 by appointment by the Secretary of War. 
 
 By order of the Secretary of War : 
 
 Peyton C. March, 
 
 General, Chief of Staff. 
 Official : 
 
 P. C. Harris, 
 
 21ie Adjutant General. 
 
 APPENDIX IV. 
 
 General Orders. 1 War Department, 
 
 No. 40. j Washington, March 19, 1019. 
 
 OPERATION OF UNITED STATES LIQUIDATION COMMISSION AND WAR DEPARTMENT 
 
 CLAIMS BOABD. 
 
 General Order No. 33. War Department, 1919, is rescinded and the following 
 substituted therefor: 
 
 (1) The United States Liquidation Commission — War Department constituted 
 by General Order No. 24, War Department, 1919, is hereby designated and estab- 
 lished as the agency through whicli shall be exercised the powers conferred 
 upon the Secretary of War by section 3 of the act entitled "An act to provide 
 relief in cases of contracts connected with the prosecution of the war, and for 
 other purposes," approved March 2, 1919, excepting powers with relation to 
 agreements and arrangements upon the termination or in settlement of or 
 readjustment of agreements or arrangements to be performed in the Dominion 
 of Canada and entered into with nationals of any Government foreign to the 
 United States of America. Section 3 of the act reads as follows : "The Secre- 
 tary of War, through such agency as he may designate or establish, is em- 
 powered, upon such terms as he or it may determine to be in the interest of the 
 United States, to make equitable and fair adjustments and agreements, upon 
 the termination or in settlement of or readjustment of agreements, or arrange- 
 ments entered into with any foreign Government or Governments or nationals 
 thereof, prior to November 12, 1918, for the furnishing to the American Expedi- 
 tionary Forces, or otherwise, for war purposes, of supplies, materials, facilities, 
 service or the use of property, or for the furnishing of any thereof by the United 
 States to any foreign Government or Governments, whether or not such agree- 
 ment or arrangement has been entered into in accordance with applicable statu- 
 tory provisions ; and the other provisions of this act shall not be applicable to 
 such adjustments." 
 
 (2) The Imperial Munitions Board, constituted and appointed by authority 
 of the British Ministry of Munitions, acting in conjuncton with two officers 
 of the United States Army, who shall be appointed and known as Canadian 
 contract assessors, is hereby authorized and empowered to exercise, and is 
 designated and established as the agency through which shall be exercised, 
 in the name of the Secretary of War and by his authority, the powers con- 
 ferred upon the Secretary of War by the act of Congress entitled "An act 
 to provide relief in cases of contracts connected with the prosecution of the 
 
UNITED STATES LIQUIDATION COMMISSION. 93 
 
 war, and for other purposes," approved March 2, 1919, in so far as the exercise 
 (•]■ such powers relates to agreements, express or implied, and arrangements, 
 which were entered into through the agency of the Imperial Munitions Board 
 and were to be performed within the Dominion of Canada. All agreements, 
 adjustments, and awards which shall be made under the authority conferred 
 by this section shall be made in writing, signed in the name of said Imperial 
 Munitions Board by a member or members thereof designated by said board 
 and by one of the aforesaid Canadian contract assessors. 
 
 (3) The War Department Claims Board, constituted by the War Department 
 Circular No. 26, dated January 20, 1919, is authorized and directed to exer- 
 cise, and is hereby designated and established, as the agency through which 
 shall be exercised, in the name of the Secretary of War and by his authority, 
 all powers and duties conferred upon the Secretary of W^ar by the act of 
 Congress entitled " An act to provide relief in cases of contracts connected 
 with the prosecution of the war, and for other purposes," approved March 2, 
 1919, except in so far as the right to exercise the powers conferred under said 
 act has been otherwise authorized and delegated under paragraphs 1 and 
 2 of this order, the said duties and powers may be performed and exercised 
 by the War Department Claims Board or by any regular or special member 
 or members thereof who may, from time to time, act under the authority and 
 direction of the War Department Claims Board. For the expeditious perform- 
 ance of its duties, the W^ar Department Claims Board is authorized to make 
 such use as it may find desirable, of the Board of Contracts and Adjustments, 
 the War Department Board of Appraisers, and any other agency or agencies 
 of the War Department. 
 
 (4) Lieut. Col. H. G. Albee, Engineers, and Maj. Sidney R. Underwood, 
 Ordnance, are hereby designated and appointed Canadian contract assessors 
 and authorized and instructed to exercise, in conjunction with the Imperial 
 Munitions Board, the powers and duties provided for in paragraph 2 hereof. 
 
 By order of the Secretary of War: 
 
 Peyton C. March, 
 
 General, Chief of Staff. 
 Official : 
 
 P. C. Harris, 
 
 The Adjutant General. 
 
 APPENDIX V. 
 
 [American Expeditionary Forces, 
 Headquarters, Services of Supply, 
 France, April 1, 1919. 
 1. Under the provisions of G. O. 24, W. D., c. s., and G. O. No. 40, c. s., supple- 
 mentary thereto, the United States Liquidation Commission — War Depart- 
 ment (hereinafter designated "Commission") — is designated as the central 
 agency to supervise and direct the disposition of — 
 
 (a) All claims of every character between the United States on the one 
 part and any foreign State or Government and their nationals on the other 
 part, growing out of or in anywise connected with the war ; and 
 
 (&) All surplus property or interest in such property of whatsoever kind 
 or nature belonging to the United States, acquired, constructed, or manu- 
 factured in connection with, or incidental to, the war and now located beyond 
 its territorial limits. 
 
94 UNITED STATES LIQUIDATION COMMISSION. 
 
 It is not the purpose of the Commission to create an organization to super- 
 sede existing agencies of the A. E. F., which are discharging in whole or in 
 part the duties falling within the jurisdiction of the Commission, but rather 
 to supervise and direct such activities of existing agencies, and act through 
 and in cooperation with them. 
 
 2. The following method of procedure has been adopted by the Commission 
 and the commanding general, S. O. S., and is published for the guidance of 
 all concerned : 
 
 (A) The Commission will, from time to time, establish and define the policies 
 to be pursued in the adjustment of claims and in the disposition of property, 
 and acquaint the interested agencies of the S. O. S. therewith. It will negotiate 
 directly or through such agencies as it may from time to time designate, with 
 ministers or other agencies of other Governments, authorized to treat with 
 lespect to the settlement of claims or the purchase or sale of property. It 
 will, from time to time, instruct the several agencies of the S. O. S. with 
 respect to prices, terms of payment, and generally as to the sales and dis- 
 position of property. It will prescribe iniles to be pursued in the preparation 
 and settlement of claims within the jurisdiction, and will, from time to time, 
 instruct the several agencies of the S. O. S. with respect to the settlement of 
 such claims and the sales of property by them. 
 
 (K) The officers of the various services of the S. O. S. will collect complete 
 data with respect to all claims which fall within the jurisdiction of the Com- 
 mission and in which such services are concerned and will (unless expressly 
 instructed to the contrary by the Commission) tentatively negotiate a settle- 
 ment of such claims, subject to the approval of the Commission ; submitting 
 such claims, when fully developed, with a recommendation for settlement and 
 the reasons therefor, through the finance officer to the Commission, for action. 
 Acting under instructions of the Commission, the officers of the various services 
 of the S. O. S. will disburse the necessary funds in the payment of claims ap- 
 proved by the Commission, under the rules and regulations of the Treasury 
 Department and of their respective departments. 
 
 (C) The finance officer, under the direction of the Commission, will co- 
 ordinate the activities of the several services in the collection of complete data 
 pertaining to claims within the jurisdiction of the Commission, and will 
 present the data in such form as may be prescribed by the Commission, for its 
 action. 
 
 (D) The officers of the various services will receive, store, and care for all 
 property of the United States. As soon as any such property is, in their opinion, 
 available for sale they will so report to the commanding general, S. O. S., 
 and, when such report is approved by him, will notify the general sales agent 
 of its availability for sale, giving him such information with regard thereto 
 as he may require. They will furnish necessary information to prospective 
 buyers and exhibit to them the property for sale to the end that it may be 
 advantageously disposed of. They will, under the directions of the Commis- 
 sion and of the general sales agent, negotiate sales, reporting same to the gen- 
 eral sales agent. They will prepare for delivery or shipment the property sold 
 or otherwise disposed of, and deliver it to the purchaser or to a transporta- 
 tion agency in accordance with the terms of the sale. They will, under the 
 directions of the general sales agent, locate markets for sales. They will re- 
 ceive moneys to be paid for the property and will deposit and account for 
 same according to the rules of the Treasury •Department and of their re- 
 spective departments. They will account for property disposed of in ac- 
 cordance with the established rules of their respective departments. 
 
UNITED STATES LIQUIDATION COMMISSION. 95 
 
 (E) In the absence of express directions by the Commission to the contrary, 
 all sales will be made by or under the direction of the ?:eneral sales agent of the 
 s. O. S., who will have agents at various places in Europe, and will locate and 
 develop markets for all classes of property that may be offered for sale. Re- 
 ports with reference to all classes of property of the A. E. F., available for sale, 
 \\ ill be made to the general sales agent and by him communicated to the Com- 
 mission. He will pro'perly advertise all sales and take measures to prevent 
 < onipetitive selling by the several services. He will, under the general super- 
 \ision of the Commission, conduct preliminary negotiations with probable 
 iMiyers. giving them such information as they may require to enable them to 
 submit offers of purchase; and will consummate sales under the general direc- 
 tion of the Commission. 
 
 (F) Communications between the Commission and the various services of 
 the S. O. S. shall either pass through the appropriate representative of the 
 commanding general, S. O. S. or, if the communication is direct, such repre- 
 sentative shall be advised thereof. The appropriate representative in all mat- 
 ters of claims shall be the finance officer ; in all matters of sale, he shall be the 
 general sales agent. The finance officer and the general sales agent shall cir- 
 culate among all interested d.epartments or agencies of the S. O. S. for their 
 guidance, all important rulings, decisions, or statements of policy of the Commis- 
 sion, having a general application. 
 
 (G) This order does not affect the payment of debts for services performed 
 or property delivered, nor, until further orders of the Commission, shall any- 
 thing herein contained affect the powers and functions of the R. R. & C. Service, 
 which shall continue in effect under existing orders or under such subsequent 
 orders as may hereafter be issued by the commander-in-chief or by the com- 
 manding general, S. O. S. 
 
 (H) Any power or authority herein assigned to the general sales agent, the 
 finance officer, or the chiefs of services, or to their subordinates, may be ex- 
 tended, withdrawn or modified at will by the Commission, or exercised directly 
 by it. when, in its judgment, such action is desirable. The powers and authority 
 as regards sales, granted herein to the Services or their representatives, may be 
 exercised by the general sales agent, when, in his opinion, the best interests of 
 the Government will be served thereby. 
 
 3. All orders or parts of orders in conflict with the above instructions are 
 hereby revoked. 
 
 4. Section I, General Orders, No. 59, S. O. S., A. E. F. (1918), is revoked and 
 the Advisory Liquidation Board therein provided for is dissolved. 
 
 By command of Maj. Gen. Harbord : 
 
 W. D. Connor, Chief of Staff. 
 Official : 
 
 L. H. Bash, Adjutant General. 
 
 APPENDIX VI. 
 
 The Categories. 
 
 I. Clothing and textiles: 
 
 A. Cotton and woolen materials, raw and fabricated. 
 
 B. Clothing, caps, boots, wearing apparel, and insignia. 
 
 C. Blankets, mattresses, pillows, and bedding. 
 
 D. Carpets, rugs, linoleum, and draperies. 
 
 E. Tents, tarpaulins, and tent accessories. 
 
 F. Jute, bagging, sacks, and burlap. 
 
96 UNITED STATES LIQUIDATION .COMMISSION. 
 
 II. Subsistence supplies: 
 
 A. Flour. 
 
 B. Fresh, smoked, and cured meats. 
 
 C. Fresh fruits and vegetables. 
 
 D. Canned goods. 
 
 E. Other food supplies. 
 
 F. Tobacco, cigarettes, cigars, and smokers' articles. 
 
 G. Hay, feed, and other forage. 
 H. Coal and coke. 
 
 t Other fuel. 
 
 III. Kitchen utensils and household furnishings: 
 
 A. Kitchen and dining-room furniture. 
 
 B. Cooking stoves and appliances. 
 
 C. Heating stoves and appliances. 
 
 D. Household and cooking utensils. 
 
 E. Tableware and cutlery. 
 
 F. Miscellaneous house and camp articles and supplies. 
 
 G. Beds, cots, and other furniture. 
 
 IV. Machinery, metals, tools, and hardware: 
 
 A. Steam engines, boilers, and parts. 
 
 B. Air-compressor parts. 
 
 C. Refrigerating machinery and supplies. 
 
 D. Machines, tools, and other power machinery and parts. 
 
 E. Other shop and foundry equipment. 
 
 F. Gas and gasoline engines and parts. 
 
 G. Construction contractors' machinery and plants. 
 I. Metals, raw and fabricated. 
 
 L. Pipe and pipe fittings. 
 
 M. Wire rope and guy wire. 
 
 N. Small tools and machines. 
 
 O. Nails, bolts, screws, rivets, nuts, and washers. 
 
 P. Locks, hinges, and other building hardware. 
 
 Q. Lamps and lanterns and parts. 
 
 R. Picks and shovels. 
 
 S. Blacksmith tools. 
 
 T. Belting and packing. 
 
 U. Hemp, rope, cordage, and twine. 
 
 V. Tanks, cans, and buckets (metal). 
 
 W. Safes and steel cabinets. 
 
 X. Pumps and water-supply apparatus. 
 
 Y. Miscellaneous materials and supplies. 
 
 Z. Horseshoes and nails. 
 AA. Agricultural implements, machinery, and appliances. 
 BB. Hose, nozzles, couplings, and fastenings. 
 
 V. Building materials: 
 
 A. Cement. 
 
 B. Lime. 
 
 C. Sand, gravel, and crushed rock. 
 
 D. Brick and tile. 
 
 E. Roofing materials. 
 
 F. Window glass. 
 
 G. Other materials. 
 
UNITED STATES LIQUIDATION COMMISSION. 97 
 
 VI. Lumber and other forest products: 
 
 A, Rough and milled lumber. 
 
 B. Ties. 
 
 D. Piling. 
 
 E. Telephone and telegraph poles. 
 
 F. Bridge timbers. 
 
 G. Stake and fence posts. 
 H. Trench framing timbers. 
 J. Brackets and cross arms. 
 K. Other wood products. 
 
 VII. Railway and dock equipment: 
 
 A. Locomotive and cars. 
 
 B. Locomotive cranes. 
 
 C. Work equipment (miscellaneous). 
 
 D. Rail. 
 
 E. Frogs and switches. 
 
 F. Other track material. 
 
 G. Hoisting and conveying machinery. 
 H. Other railroad and dock equipment. 
 J. Floating equipment. 
 
 VIII. Transport equipment: 
 
 A. Automobiles and motor trucks. 
 
 B. Tires and tubes. 
 
 C. Automobile parts. 
 
 D. Automobile accessories and tools. 
 
 E. Bicycles and motor cycles and supplies. 
 
 F. Horses and mules. 
 
 G. Harness and saddlery. 
 
 H. Wagons, carts and trailers. 
 
 J. Wagon accessories and miscellaneous supplies. 
 
 IX. Hospital and toilet supplies and chemicals: 
 
 A. Drugs and medicines (Medical Department). 
 
 B. Surgical instruments (Medical Department). 
 
 C. Hospital apparatus and supplies (Medical Department). 
 
 D. Chemicals and disinfectants. 
 
 E. Soaps and other toilet articles and preparations. 
 
 F. Ordnance and Gas Service chemicals. 
 
 X. Photographic, measuring, and musical instruments: 
 
 A. Cameras. 
 
 B. X-rays and supplies. 
 
 E. Photographic material and supplies. 
 
 F. Surveying instruments and compasses. 
 H. Field glasses and telescopes. 
 
 I. Drafting instruments. 
 
 J. Clocks and watches. ^ 
 
 K. Other instruments and supplies. 
 
 L. Musical instruments. 
 
 XI. Electrical equipment and supplies. 
 
 A. Dynamos. 
 
 B. Generator sets 
 
 C. Motors. 
 
 D. Transformers. 
 183176—20 7 
 
98 UNITED STATES LIQUIDATION COMMISSION. 
 
 XI. Electrical equipment and supplies — Continued. 
 
 E. Interior wiring supplies. 
 
 F. Switchboards and accessories. 
 
 G. Line materials and supplies. 
 
 H. Copper and iron wire and cable. 
 
 I. Batteries, bells, buzzers, and push buttons. 
 
 J. Insulating materials. 
 
 K. Telephone and telegraph equipment and accessories. 
 
 L. Electric lamps. 
 
 M. Other apparatus and equipments. 
 
 N. Wireless apparatus and equipments. 
 
 XII. Oils, gasoline, and paints: 
 
 A. Gasoline. 
 
 B. Other fuel oils. 
 
 C. Lubricating oils. 
 
 D. Lubricating greases. 
 
 E. Linseed oil. 
 
 F. Turpentine. 
 
 G. Color materials and mixed paints. . 
 H. White and red lead. 
 
 K. Varnishes and shellacs. 
 
 L. Painters' tools and supplies. 
 
 XIII. Ordnance and gas equipment and supplies : 
 
 A. Guns and accessories. 
 
 B. Gun carriages and caissons. 
 
 C. Rifles and pistols. 
 
 D. Ammunition. 
 
 E. Target supplies. 
 
 F. Gas masks and other protecting devices. 
 
 G. Flame throwers, hand grenades, and gas bombs. 
 H. Other equipment and supplies. 
 
 XIV. Blasting apparatus and supplies: 
 
 A. Dynamite. 
 
 B. Powder. 
 
 C. Blasting appliances and accessories. 
 
 XV. Printing plant and supplies: 
 
 A. Printing presses and appliances. 
 
 B. Paper cutters, rulers, and folders. 
 
 C. Printers' inks. 
 
 D. Type. 
 
 E. Printing paper. 
 
 F. Other printing-office supplies. 
 
 XVI. Oflace fixtures, stationery, and supplies: 
 
 A. Office furniture and fixtures. 
 
 B. Pencils, pens, and ink. 
 
 C. Paper and envelopes. 
 
 D. Carbon paper. 
 
 E. Typewriters and supplies. 
 
 F. Drafting-room material. 
 
 G. Blackboard and chalk. 
 H. Miscellaneous supplies. 
 I. Blank and ruled books. 
 
 J. Calculating and numbering machines. 
 K. Duplicating machines and supplies. 
 L. Rubber stamps and pads. 
 
UNITED STATES LIQUIDATION COMMISSION. 99 
 
 XVII. Hides and leather : 
 
 A. Hides. 
 
 B. Leather. 
 
 C Leather articles. 
 
 XVIII. Air Service apparatus and equipment: 
 
 A. Aeroplanes and appliances. 
 
 B. Balloons and appliances. 
 
 C. Hangars and sheds. 
 
 D. Aeronautical textbooks and pubfications. 
 
 E. Other apparatus and supplies. 
 
100 
 
 UNITED STATES LIQUIDATION COMMISSION. 
 
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 APPENDIX IX. 
 
 103 
 
 Form of " Eeceipt " Given by French in Taking Over United States Stocks 
 
 Before the Sale. 
 
 (place.) 
 
 (localitI;.) 
 
 1. Be it known that on this 
 
 day of , 1919, the War 
 
 Department of the United States of 
 America has delivered to the Govern- 
 ment of France the property described 
 and the location of which is men- 
 tioned or fixed in the attached in- 
 ventory, marked for identification 
 " Exhibit A," the bottom of each sheet 
 being initialed by the undersigned 
 American and French officers, and 
 made a part hereof. 
 
 2. From and after the date hereof 
 the French Government will hold the 
 said property for, but without expense 
 to, the United States of America, sub- 
 ject to the directions of the United 
 States Liquidation Commission, War 
 Department, pending negotiations be- 
 tween the said Commission and repre- 
 sentatives of the French Government 
 for its purchase by the French Gov- 
 ernment. 
 
 For the War Department of the 
 United States of America. 
 
 By 
 
 (American Officer) 
 For the Republic of France. 
 
 By 
 
 (French Officer.) 
 
 1. II est reconnu que ce jour 
 
 de 1919, le Department 
 
 de la Guerre des ]6tats-Unis d'Ame- 
 rique a delivrg au Gouvernement Fran- 
 gais la proprigtS decrit^ et dont la lo- 
 cation est mentionnee oil fixee dans 
 I'inventaire ci-joint, marque pour iden- 
 tification " Pi§ce A," le bas de chaque 
 page portant les initiales des officiers 
 Americains et Frangais soussign^s, et 
 formant partie de ce recu. 
 
 2. D'a partir de la date ici port^e, la 
 Gouvernement Frangais retiendra la 
 dite propi^t^ pour le Gouvernement 
 des ifetats-Unis d'Amerique, mais sans 
 f rais pour lui, soumis aux instructions 
 de la Commission de Liquidation des 
 ]6tats-Unis, Department de la Guerre, 
 en attendant des negociations entre le 
 dite Commission et les representants 
 du Gouvernement Frangais pour 
 I'achat de cette propri§t6 par le Gou- 
 vernement Frangais. 
 
 Pour le Department de la Guerre 
 des ;fitats-Unis d'Amerique. 
 
 Par 
 
 (Officier Americain.) 
 Pour la Republique Frangais. 
 
 Par 
 
 (Officier Frangais.) 
 
 APPENDIX X. 
 
 <1) Contract of Sale, United States to France, August 1, 1919 — 
 The Bulk Sale to France. 
 
 This contract entered into this first 
 day of August A. D. 1919 by and be- 
 tween the United States of America 
 (hereinafter called America), acting 
 through the United States Liquidation 
 Commission — War Department, of the 
 one part; and the Republic of France 
 (hereinafter called France), acting 
 
 Entre les Etats-Unis d'Amerique 
 (ci-apres denommee Amerique) et par 
 I'intermediaire de la United States 
 Liquidation Commission, War Depart- 
 ment, d'une part, et la Republique 
 Francaise (ci-apres denommee France) 
 et par I'intermediaire de M. le Sous- 
 Secretaire d'Etat aux Finances d'autre 
 
104 
 
 UNITED STATES LIQUIDATION COMMISSION. 
 
 through Le Sous-Secretaire d'Etat aux 
 Finances, of the other part, wit- 
 nesseth : 
 
 That whereas, America is the owner 
 of certain property now located in 
 France which was imported into, ac- 
 quired or constructed in France since 
 April 6, 1917, by the War Department 
 of the United States of America (here- 
 inafter called War Department) ; and 
 
 Whereas, it is deemed advantageous 
 to both Governments that America sell 
 and France purchase said property; 
 
 Now therefore, in consideration of 
 the premises and for the other consid- 
 erations herein stated, it is mutually 
 agreed, as follows: 
 
 part, il a ete conclu a la date du l**" 
 Aotit 1919 le contrat suivant : 
 
 Etant donne que I'Amerique possede 
 en France une certaine quantite de 
 biens en exeedent qui ont ete importes, 
 achetes ou construits en France depuis 
 le 6 Avril 1917 par le Department de la 
 Guerre des Etats - Unis d'Amerique 
 (ci-apres denomme; War Department),, 
 et etant donne qu'il est juge avanta- 
 geux pour les deux Gouvernements 
 que I'Amerique vende et que la France 
 achete les dits biens, la convention sui- 
 vante a ete agrees d'un commun accord 
 en egard aux considerations ci-dessus 
 et aux considerations exposees dans le 
 present document: 
 
 AETICLE ONE. 
 
 Description of property. — ^America 
 agrees to and does hereby sell to 
 France without warranty of quantity, 
 quality or condition, and subject to the 
 reservations, exceptions and conditions 
 hereinafter set forth, and France 
 agrees to and does hereby purchase 
 from America, all of the property now 
 located in France and now owned by 
 the War Department, described as fol- 
 lows : 
 
 a. All of the buildings, structures, 
 docks, warehouses, telephone and tele- 
 graph lines, railroads and other instal- 
 lations of every kind and character 
 constructed or acquired in France since 
 April 6, 1917, together with the leases, 
 appurtenances and equipment apper- 
 taining thereto ; and 
 
 b. All of the movable property, con- 
 sisting of material, equipment and sup- 
 plies imported into or acquired in 
 France since April 6, 1917. 
 
 ABTICLE TWO. 
 
 Exceptions and reservations. — 
 America reserves from the property 
 described in Article One hereof (which 
 is sold subject to the following ex- 
 ceptions and conditions) property as 
 follows : 
 
 ABTICLE I. 
 
 Description du materiel.' — L'Amer- 
 ique consent a vendre et vend effective- 
 ment a la France par le present acte- 
 sans guarantie de quantite, de qualite^ 
 ou d'etat actuel et sous reserve des^ 
 exceptions et des conditions enoncees 
 ci-apres et la France accepte d'acheter 
 effectivement par le present acte a 
 I'Amerique tons les biens actuellement 
 situes en France et appartenant au 
 War Department dont la description- 
 suit: 
 
 a. Tous les batiments, constructions, 
 docks, magasins, lignes telephoniques 
 et telegraphiques, lignes de chemins de 
 fer et autre installations de tout genre 
 et de tout nature construits ou acquis^ 
 en France depuis le 6 Avril 1917, en 
 meme temps que les baux, les depend-^ 
 ances et amenagements y correspond- 
 ant. 
 
 b. Tous les biens mobiliers consist- 
 ant en materiels, equipements et ap- 
 provisionnements importes ou achetes 
 en France depuis le 6 Avril 1917. 
 
 ABTICLE II. 
 
 Exceptions et reserves. — L'Amerique 
 excepte des biens decrits dans TArticle, 
 ci-dessu, (lesquels sont vendus sous les 
 reserves et conditions indiquees ci- 
 apres), ceux de ces biens dont la de- 
 scription suit: 
 
UNITED STATES LIQUIDATION COMMISSION. 
 
 105 
 
 a. All animals. 
 
 t). Undelivered material, equipment 
 and supplies which America has 
 already sold or contracted to sell (1) 
 to other nations, (2) to relief asso- 
 ciations or organizations, (3) to 
 Spanish Company for export to 
 and distribution in Spain, and 
 (4) to an English syndicate of 
 motor transport of English manufac- 
 ture only, for return to and distribu- 
 tion in England, all aggregating in 
 selling value approximately Seventy- 
 seven Million, Two-hundred and 
 Sixty-five Thousand, Five-hundred and 
 Ninety-seven Dollars and Eighty-three 
 cents ($77,265,597.83) ; 
 
 c. Equipment, material and supplies 
 forming a part of the equipment of 
 the individual soldier or of the mili- 
 tary units which have been or may be 
 hereafter withdrawn from France for 
 return to the United States : 
 
 d. Material, equipment and supplies 
 now in France needed by America and 
 already ordered returned to America 
 for the use of the War Department, 
 of the estimated cost value of fifteen 
 million dollars ($15,000,000.00). 
 
 e. Subsistence and supplies neces- 
 sary to meet the requirements of the 
 American Expeditionary Forces and 
 other War Department organizations 
 so long as they are in France, which 
 subsistence and supplies are now 
 located both in depots and points other 
 than depots; such stocks now in 
 depots being of the estimated cost 
 value of Four Million Dollars 
 ($4,000,000.00) ; and 
 
 f. Medical, surgical and hospital 
 supplies and supplementary and die- 
 tary foodstuffs needed in the treat- 
 ment of the sick and injured, reserved 
 for the use of the American Red Cross 
 
 a. Tous les animaux. 
 
 b. Les materiels, equipements, ap- 
 provisionnements que I'Amerique a 
 deja vendus ou qu'elle s'est engagee a 
 vendre, mais qu'elle n'a pas encore 
 livres (1) a d'autres Etats (2) a des 
 associations ou organizations chari- 
 tables (3) a une Compagnie Espagnole 
 aux fins d'exportation et de distribution 
 en Espagne, et (4) a un syndicat Ang- 
 lais, en ce qui concerne du materiel 
 automobile, uniquement de fabrica^on^ 
 Anglaise, materiel destine a etre rem- 
 ports et distribue en Angleterre, la 
 valeur marchande de tout ce qui 
 est indique ci-dessus s'elevant ap- 
 proximativement a Soixante dix-sept 
 millions, deux cent soixante cinq 
 mille, cinq cent quatre vingt-dix 
 sept dollars quatre vingt trois cents 
 ($77,265,597.83). 
 
 c. L'Equipement, le materiel et les 
 approvisionements qui font partie de 
 I'equipement individuel de I'homme ou 
 des unites militaires qui ont ete ou 
 seront retires de France pour retour- 
 ner aux Etats-Unis. 
 
 d. Les materiels, equipments et 
 approvisionnements actuellement en 
 France necessaires a I'Amerique et qui 
 d'apres des instructions precedement 
 recues doivent etre expedies aux Etats- 
 Unis pour I'usage du War Department 
 et dont L'estimation au prix de revient 
 s'eleve a quinze millions de dollars 
 ($15,000,000.00). 
 
 e. Les fournitures et approvisionne- 
 ments necessaires pour subvenir aux 
 besoins des Forces Expeditionnaires 
 Americaines et des autres organisa- 
 tions dependant du War Department 
 tant qu'elles resteront en France, 
 fournitures et approvisionnements qui 
 sont actuellement situes dans des 
 depots et dans des points autres que 
 les depots; le total des approvisionne- 
 ments dans les depots etant estime, au 
 prix de rivient a quatre millions de 
 dollars ($4,000,000.00) ; et 
 
 f. Les approvisionnements medicaux, 
 chirurgicaux et hospitallers ainsi que 
 les denrees alimentaires de regime 
 necessaires dans le traitement des 
 malades et blesses, reserves pour I'usage 
 
106 
 
 UNITED STATES LIQUIDATION COMMISSION. 
 
 in connection with its activities in 
 Europe, of tlie estimated cost value of 
 ten million dollars ($10,000,000.00). 
 Should the Secretary of War of the 
 United States of America, or his 
 authorized representative, hereafter 
 request that France re-sell to America 
 additional property of similar nature 
 for the use of the American Red 
 Cross, then in such event France 
 agrees to re-sell same to America so 
 long as it is held by France unsold, 
 delivering it to the American Red 
 Cross at the same price at which 
 France has valued such property in 
 making this purchase, so that the re- 
 sale shall be at cost to France without 
 profit. America agrees to give France 
 credit on the bonds, hereinafter men- 
 tioned, for any property so re-sold. 
 
 de la Croix-Rouge Americaine pour son 
 oeuvre en Europe, dont I'ensemble est 
 evalue, au prix de revient, a 10 mil- 
 lions de dollars ($10,000,000.00). Si 
 le Secretaire d'Etat a la Guerre des 
 Etats-Unis d'Amerique ou son Repre- 
 sentant autorise demandait dans la 
 suite a la France de lui revendre pour 
 I'usage de la Croix Rouge Americaine 
 un surplus d'Approvisionnements du 
 meme genre, la France consent dans ce 
 cas a revendre ces approvisionnements 
 aussi long temps qu'elle les conservera 
 invendus, en les livrant a la Croix- 
 Rouge Americaine au meme prix que 
 la France I'a estime en effectuant son 
 achat, de telle sorte que la revente 
 sera faite par la France au prix cou- 
 tant sans benefice. L'Amerique est 
 d'accord pour crediter la France sur 
 les obligations dont il est question plus 
 loin pour tout le materiel revendu de 
 la sorte. 
 
 ABTICLE THREE. 
 
 Consideration. 
 
 ABTICLE in. 
 Prix et engagements speciaux. 
 
 a. Bonds, — In addition to the other 
 considerations herein enumerated, 
 France agrees to pay for the above 
 described property the sum of four 
 hundred million dollars ($400,000,000) 
 to be evidenced by bonds of the Re- 
 public of France, dated August 1, 1919, 
 bearing interest from August 1, 1920, 
 at the rate of five per centum (5%) 
 per annum, interest payable in equal 
 semi-annual installments on February 
 1st and August 1st in each year, said 
 bonds maturing ten (10) years after 
 date, both principal and interest pay- 
 able in dollars to the United States of 
 America, or its assigns, at Washing- 
 ton, D. C, in gold coin ; or, at the elec- 
 tion of America, payable in francs of 
 the Republic of France at the cable 
 buying rate as fixed by the Federal 
 Reserve Bank of New York on the 
 New York market at noon of the due 
 date thereof. Said bonds shall be in 
 such form and of such denominations 
 as may be prescribed by agreement be- 
 
 a. Obligations. — En plus des autres 
 engagements enumeres ici, la France 
 consent a payer pour le materiel de- 
 crit plus haut, la somme de quatre 
 cents millions de dollars ($400,000,- 
 000.00) representes par des obliga- 
 tions de la Republique Francaise, en 
 date du ler Aout 1919, portant interet 
 du ler Aout 1920 au taux de cinq pour 
 cent (5%) I'an, interets payable en 
 paiements a termes semestriels et 
 egaux, le ler Fevri^r et le ler Aout de 
 chaque anne, les dites obligations ar- 
 rivant a amortissement dix (10) ans 
 apres la date d'emission, le capital et 
 les interets payables en dollars aux 
 Etats-Unis d'Amerique ou a ceux qu'ils 
 designeront a Washington, District of 
 Columbia, en monnaie d'or, ou au choix 
 de I'Amerique, payables en francs de la 
 Republique Francaise au taux d'achat 
 fixe par cable par la Federal Reserve 
 Bank de New York, sur le marche 
 de New York, a midi de la djate 
 d'esscheance. Les dites obligations 
 
UI^ITED STATES LIQUIDATION COMMISSION. 
 
 107 
 
 tween the Treasury Departments of 
 America and of France, and shall be 
 delivered within ninety (90) days 
 from August 1st, 1919. 
 
 b. Claims and rentals. — France as- 
 sumes the payment of all rentals 
 which shall accrue subsequent to 
 August 1st, 1919, on account of the 
 occupancy of the installations of ev- 
 ery character purchased by it from 
 America. All requisition, damage and 
 restoration claims of every nature 
 whatsoever connected with or growing 
 out of the use and occupation of said 
 installations have already been taken 
 into account by France in estimating 
 the utilization value of said installa- 
 tions, and deduction has been made 
 accordingly from the purchase price 
 mentioned in subdivision " a" of this 
 Article Three hereof; and France as- 
 sumes the payment of and agrees to 
 hold America harmless against all 
 such claims. 
 
 c. Waiver of claims. — France waives 
 all claims of every nature which it has 
 or may have against America for Na- 
 tional taxes on account of the importa- 
 tion of or transactions in relation to 
 property heretofore imported or ac- 
 quired by America in France since 
 April 6th, 1917. 
 
 seront emises dans la forme ei sous la 
 denomination qui sera prescrite d'ac- 
 cord entre les Ministres des Finances 
 des Gouvernements Americain et Fran- 
 cais. L'emission des obligations aura 
 lieu dans les quatre-vingt-dix (90) 
 jours a partir de la date du ler 
 Aout 1919. 
 
 b. Reclamations et locations. — La 
 France prendra a sa charge le paie- 
 ment a partir de la date du ler Aout 
 1919, de tons les loyers d'occupation_ 
 d'installations de toute nature qu'elle 
 achete aux Etats-Unis d'Amerique. 
 Tons rais de requisitions, de dom- 
 mages et de remise en etat de toute 
 nature qui peuvent etre dus pour 
 I'usage et I'occupation de ces installa- 
 tions, ont ete deja pris en considera- 
 tion par la France dans I'estimation 
 qu'elle a faite de la valeur d'utilisa- 
 tion des dites installations et une de- 
 duction correspondante a ete operee 
 sur le prix d'achat mentionne dans la 
 sub-division " a " de I'Art. Ill ci- 
 dessus; En consequence la France 
 rendre a sa charge le paiement de ces 
 frais et s'en gage a ce qu'aucune re- 
 clamation ne soit faite a I'Amerique a 
 leur sujet. 
 
 c. Renoncement aux Reclamations. — 
 La France renonce a toutes reclama- 
 tions de toute nature qu'elle a ou pent 
 avoir contre I'Amerique pour des 
 taxes d'Etat provenant d'importations 
 ou de transactions relatives aux biens 
 jusqu'ici importes ou achetes par 
 TAmerique en France, depuis le 6 
 Avril, 1917. 
 
 ARTICLE FOUB. 
 
 ARTICLE IV. 
 
 Title and possession. — a. Title to the 
 property hereinbefore mentioned, sold 
 by America to France, shall pass to 
 France upon the signing of this con- 
 tract. Delivery of possession shall be- 
 gin immediately and shall be com- 
 pleted within thirty days from August 
 1st, 1919. So long as said property is 
 in the possession of America it shall 
 be held at the joint risk of America and 
 France; provided, however, that the 
 
 Titre et possession. — a). La pro- 
 priete des biens vendus par le present 
 acte sera transferee a la France par la 
 signature de ce contrat. La prise de 
 possession commencera immediate- 
 ment, et devra etre terminee dans les 
 trente (30) jours a partir du ler Aout 
 1919. Aussi longtemps que ces biens 
 seront conserves par I'Amerique, il le 
 seront aux risques communs de 
 I'Amerique et de la France, pourvu 
 
108 
 
 UNITED STATES LIQUIDATION COMMISSION. 
 
 risk to America shall terminate abso- 
 lutely with August 31st, 1919, whether 
 delivery has at that time been taken 
 by France or not. At the time of de- 
 livery of possession a receipt in sub- 
 stantially the following form shall be 
 signed .by representatives of the re- 
 spective Governments: 
 
 "Be it known that on this 
 
 day of , 1919, the United 
 
 States of America, War Department, 
 has delivered to the accredited repre- 
 sentative of the Republic of France, 
 on authority of the United States 
 Liquidation Commission — War Depart- 
 ment, all the property, both fixed and 
 movable, belonging to the United 
 States of America, War Department, 
 embraced or located in installation, 
 depot or park known as De- 
 partment Project No. 
 
 as shown on the Jadwin Report of In- 
 stallation, page — . 
 
 " Executed in parts, each hav- 
 ing the full force and effect of an 
 original." 
 
 b. France hereby grants to America, 
 rent free, the temporary use of such 
 installations and moveables purchased 
 by France in accordance |with the 
 terms of this contract as may be re- 
 quired by the American Expeditionary 
 Forces and other War Department Or- 
 ganizations so long as they are in 
 France or as may be necessary to 
 complete the liquidation of the affairs 
 of the War Department; provided, 
 however, that so long as such installa- 
 tions and movables are retained by 
 America for its use under the terms of 
 this subdivision " b " of Article Four 
 hereof, they shall be held at the risk of 
 America. 
 
 In witness whereof, on the day and 
 year first above written, this contract 
 has been executed in four parts, each 
 having the full force and effect of an 
 original, by the United States of 
 America, acting through the United 
 States Liquidation Commission — War 
 
 toutefois que le risque supporte par 
 I'Amerique se termine d'une maniere 
 absolue au 31 Aout 1919, que la prise 
 de possession ait ete, a cette date, 
 operee ou non par la France. Au mo- 
 ment de la prise de posession un recu 
 dans la forme suivante sera signe par 
 les Representants des Gouvernements 
 interesses : 
 
 " Qu'il soit connu que le jour 
 
 de 1919, les Etats-Unis 
 
 d'Amerique, Ministere de la Guerre, ont 
 remis au Representant accredite de la 
 Republique Francaise, sur ordre de la 
 Commission de Liquidation des Etats- 
 Unis, Ministere de la Guerre, tout le 
 materiel, fixe et transportable, apperte- 
 nant aux E'tats-Unis d'Amerique, De- 
 partment de la Guerre, compris ou 
 situe dans I'installation, le depot ou 
 
 le par connu sous le nom de 
 
 Department Project No. 
 
 comme indique sur le Rapport de 
 Jadwin des Installations, page — . 
 
 " Execute en exemplaires 
 
 chacun ayant pleine vigueur et force 
 d'originjil." 
 
 b. ) La France consent par le present 
 contrat a accorder a I'Amerique, sans 
 paiement de loyer, I'usage de telle par- 
 tie des installations et des biens mau- 
 bies achetes par la France suivant les 
 termes de ce contrat, qui pourra etre 
 necessaire aux Forces Expedition- 
 naires Americaines et autres Services 
 du War Department et sera demandee 
 par eux, aussi longtemps que eel a sera 
 juge necessaire pour terminer la liqui- 
 dation des affaires du War Depart- 
 ment; a condition toutefois qu'aussi 
 longtemps que ces installations et ma- 
 teriels seront conserves par I'Amerique 
 pour son usage, suivant les termes de 
 la subdivision "b" de I'Art. IV ci- 
 dessus, ils le seront aux risques de 
 I'Amerique. 
 
 En foi de quoi, a la date de I'anne 
 indiquee ci-dessus, entete ce contrat a 
 ete dresse en quatre exemplaires, pour 
 valoir chacun d'eux comme original 
 par les Etats-Unis d'Amerique, agis- 
 sant par I'intermediaire de la Commis- 
 sion de Liquidation des Etats-Unis, 
 
UNITED ST-A:TES LIQUIDATION COMMISSION. 109 
 
 Department, Edwin B. Parker, Chair- Ministere de la Guerre, Edwin B. 
 man; and by the Republic of France, Parker, President; et par la Repub- 
 acting through le Sous-Secretaire lique Francaise, agissant par I'inter- 
 d'Etat aux Finances, Paul Morel. mediaire du Sous-Secretaire d'Etataux 
 
 Finances, Paul Morel. 
 
 United States of America, 
 By E. B. Paekeb, 
 Chairman, United States Liquidation Commission — War Department. 
 
 Republic of France. 
 
 By P. Morel, -__ 
 
 Le Sous-Secretaire d'Etat aux Finances. 
 
 (2) The Ratification of the But.k Sale Contract. 
 
 Republic of France, Law of the 21st October, 1919. 
 
 Law ratifying the agreement entered into August 1, 1919, between the United 
 States of America and the French Republic for the sale of American stocks. 
 
 The Senate and the Chamber of Deputies have adopted, 
 
 The President of the Republic promulgates the law, whereof the terms 
 follow : 
 
 Sole Article : The agreement entered into August 1, 1919, between the United 
 States of America and the Republic of France for the purchase by France of 
 the surplus property imported, purchased, or constructed in France since April 
 6, 1917, by the War Department of the United States of America, is hereby 
 voted. 
 
 The present law considered and adopted by the Senate and by the Chamber 
 of Deputies shall be executed as a law of the State. 
 
 Done at Paris, 21 October, 1919 : 
 
 By the President of the Republic : 
 
 The President of the Council, Minister of War, 
 
 Georges Clemenceau. 
 
 The Minister of Finance : 
 
 L. L. Klotz. 
 
 Note. — A further law provides for a separate accounting in disposing of these 
 stocks; and after the deduction of direct expenses, a turning of the proceeds 
 into a special fund for the payment of principal and interest on the purchase 
 debt. 
 
 (3) Letter of Transmittal of Contract, Parker to Morel, August 4, 1919. 
 
 Subject : Sale of property by the United States War Department to the Govern- 
 ment of France. 
 
 M. Paul Morel, 
 
 Le Sous- Secretaire d'Etat aux Finances, Paris, France. 
 My Dear Monsieur Morel : Complying with my promise to you made in con- 
 ference had in your office Friday afternoon, August 1, I now have pleasure in 
 handing you herewith draft of contract to be entered into between the United 
 States of America on the one part, and the Republic of France on the other part. 
 
110 UNITED STATES LIQUIDATION COMMISSION. 
 
 for the sale of property by the War Department of the United States to the 
 Government of France. 
 
 You will note that the contract follows very closely the language of your 
 memorandum, which I received on August 1, and which was in response to my 
 letter of July 25. There are a few provisions, such as that dealing with 
 "Waiver of claims," constituting subdivision "c" of Article Three, not em- 
 bodied in your memorandum, but which you will find covered in the corre- 
 spondence leading up to this agreement and which I am sure are clearly under- 
 stood between us. 
 
 We both agree that it is desirable to keep this formal contract as simple as 
 practicable and not encumber it with details, and to that end I am not under- 
 taking to embody in the contract the following: 
 
 1. The estimated selling value of the undelivered material, equipment, and 
 supplies which America has sold or contracted to sell, aggregating approxi- 
 mately $77,265,297.83, is estimated to approximate 75 per cent of the cost price 
 as stated on the American inventories, and these materials, equipment, and sup- 
 plies, based on such values, are distributed between the several inventoried 
 categories, substantially as follows: 
 
 Category 1 $20, 207, 704. 75 
 
 . Category 2 i 35, 402, 769. 36 
 
 Category 4 1, 742, 860. 00 
 
 Category 7 2, 113, 750. 00 
 
 Category 8 9, 722, 763. 72 
 
 Category 9 s 4, 637, 500. 00 
 
 Category 12 285, 000. 00 
 
 Category 13 3, 153, 250. 00 
 
 Total 77, 265, 597. 83 
 
 2. It is, of course, understood that upon the taking over of installations 
 France will grant, rent free, to America or purchasers from it the temporary 
 use for a reasonable time of such installations as may be necessary for ware- 
 house and storage space for material, equipment, and supplies reserved from 
 the sale to France and mentioned in Article Two of the agreement dated August 
 1, 1919. If you desire to set a time limit on such use, I suggest October 1, 1919. 
 
 3. We will, of course, keep accurate account of all deliveries made on unful- 
 filled contracts on and after July 25, the date on which I sent you statement 
 of estimated selling value of undelivered material. Conversely, should we 
 import into France any material, equipment, or supplies on or after that date, 
 they will not be included in the bulk sale to France. 
 
 4. In the settlement between our two Governments for artillery and ammuni- 
 tion purchased by America from France an agreement has been reached by 
 which America obligates itself to pay France a very large sum. A considerable 
 number of these artillery units are only now being delivered, and some of them 
 are yet to be finished and delivered. We are anxious to take delivery and return 
 
 ' these ordnance supplies and equipment to the United States at the earliest possi- 
 ble moment. It is, of course, understood that these artillery units which France 
 is selling to America are not included in the. bulk sale to the French or in the 
 material, equipment, and supplies reserved for return by America to the United 
 States estimated in the contract at $15,000,000. I simply mention this here out 
 of abundance of caution to avoid any possible misunderstanding in the future. 
 
 5. You may treat this letter as supplementary to and explanatory of the 
 formal agreement, and upon its acceptance by you it will bind both parties 
 thereto. 
 
UNITED STATES LIQUIDATION COMMISSION. Ill 
 
 I presume it is desirable that the contract should be written in both French 
 and English in parallel columns, and if this is agreeable to you I will have it 
 prepared accordingly. 
 
 I am sure that you will agree with me that it is desirable that the contract 
 should be promptly executed, and to that end I hold myself in readiness to 
 meet with you at any time to-day or to-morrow. 
 Yours very sincerely, 
 
 (Signed) Edwin B. Pabker, 
 
 Chairman, United States Liquidation Commission — War Department. 
 
 (4) Supplement to letter of Transmittal, August 11, 1919. 
 
 Subject: Sale of property by the United States War Department to the Govern- 
 ment of France. 
 
 M. Paul Morel, 
 
 Le Sous-Secretaire d'Etat aux Finances, Paris, France. 
 
 My Dear Monsieur Morel : In the conference had with you on the afternoon 
 of August 7 you stated that the terms set forth in my letter to you of August 4, 
 supplementary to and explanatory of the formal agreement, bearing date of 
 August 1, 1919, were acceptable to you with the following changes : 
 
 (a) At the end of and as a part of paragraph (1), page 2, there should be 
 added the following: 
 
 " The material, equipment, and supplies necessary to complete the contracts of 
 sale mentioned shall be for each category selected as follows : If the materials 
 are classified according to condition as new, good, worn, much worn, etc., the 
 selection will be made for each category, and for each class In that category, 
 in the proportion in which the various classes enter into the category. If the 
 materials of a category are not classified, the selection shall be an average of 
 the qualities in such category." 
 
 (&) At the end of paragraph 3 change the period to a semicolon, and add 
 the words: 
 
 " Provided America will not import into France any surplus War Department 
 material, equipment, or supplies for sale in France, without first giving to 
 France an opportunity to purchase same." 
 
 Will you please treat this letter as supplementary to my letter to you of 
 August 4, above mentioned? 
 Yours very sincerely, 
 
 (Signed) Edwin B. Parker, 
 
 Chairman, United States Liquidation Commission — War Department. 
 
 APPENDIX XL 
 
 1. Letter from Mr. Hoover to Judge Parker. 
 
 Supreme Economic Council, Food Section, 
 
 March 17, 1919. 
 Chairman United States Liquidation Commission — War Department, 
 
 Paris, France. 
 Dear Judge Parker : The clothing relief to the liberated countries of Europe 
 is just' as important as food relief, and we have already made considerable pur- 
 chases from the Army for Belgium and northern France, and have even bought 
 and shipped from the United States. The prices, however, on the Army mate- 
 
112 UNITED STATES LIQUIDATION COMMISSION. 
 
 rials have been extremely high — higher than from the trade — and would only 
 be accepted under force majeure. The Governments who buy them necessarily 
 have to re-sell to their public and they are very wary as to buying in considera- 
 able amounts at the present prices, as private firms, which are rapidly re-open- 
 ing, are able to place similar goods at lower prices. If, on the other hand, rea- 
 sonable prices can be made and credits giyen, we can go a long ways toward 
 relieving the Army of its clothing and we could also relieve it of a large amount 
 of iron rations. The Army have a number of " Lake " boats, frpm 2,000 to 3,000 
 tons carrying capacity, at present in the coal trade, which they are now ready 
 to relinquish to return to the States. If they would undertake to load a cargo 
 of these boats with clothing supplies at reasonable prices for each, Roumania, 
 Greater Serbia, Poland, and a further cargo of iron rations for Poland, we 
 could dispose of this material for you at once. We have a general contractoral 
 arrangement with these Governments by which they accept our invoices for such 
 cargoes, provided we are willing to say that they are reasonable prices, and 
 will undertake to give any sort of obligation that we may call for. None of 
 these Governments, of course, have any money, and if the Army will take a 12- 
 month's treasury bill in each case the whole matter could be put in hand and 
 carried through instantly, provided always that the prices are reasonable. I 
 understand that the treasury prefers to make advances to these countries with 
 which they are to pay for these materials. This is, however, only a question 
 of inversion of finance, but I mention it as I understand it is their desire. 
 Yours faithfully, 
 
 Herbert Hoover. 
 
 2. Letter from the President to Judge Parker. 
 
 The President of the United States of America, 
 
 Paris, 2^ March, 1919. 
 
 My Dear Judge Parker : Mr. Hoover has represented to me the critical cloth- 
 ing conditions in the liberated countries. He has also presented to me the fact 
 that the War Department is possessed of enormous stocks, not only of new 
 clothing but of renovated materials. It must be obvious that these renovated 
 materials can have but little value in the world markets and that the unused 
 materials, purchased and manufactured under war conditions, will soon be 
 heavily depreciated by the return of commerce to more normal prices. , It 
 would appear, therefore, that it is desirable to liquidate these stocks at the 
 earliest possible moment. 
 
 It would appear that but little market could be found for such large quan- 
 tities of clothing and shoes and similar articles, except through some such relief 
 agency as that conducted by Mr. Hoover and, to some extent, this agency may 
 be of value in the distribution of the unused material. The sympathetic interest 
 which the American people must have in the alleviation of misery amongst the 
 liberated people should lead us to entertain the most sympathetic view as to 
 prices and terms upon which this material is disposed of to them. I would be 
 glad, therefore, if the Commission could accept as its guiding principle in these 
 negotiations the fact that it is not only securing a rapid liquidation of materials 
 that may otherwise prove practically unsalable, but also that it has an oppor- 
 tunity to perform a fine human service by approaching the matter in the most 
 sympathetic mind, and I would be glad if the Commission could see its way to 
 very largely accept Mr. Hoover's views as to the terms upon which dealings 
 should be undertaken with the liberated peoples. 
 
 Faithfully yours, Woodrow Wilson. 
 
UNITED STATES LIQUIDATION COMMISSION. 
 3. Letter from Judge Parker to the President. 
 
 113 
 
 Paris, March 25, 1919. 
 My Dear Mr. President : It will be the pleasure as well as the duty of this 
 Commission to pursue the course outlined in your letter of March 24 addressed 
 to me, in disposing, with Mr. Hoover's assistance, of salvaged wearing apparel 
 and other materials and supplies of which the liberated countries are sorely 
 in need. 
 
 Yours respectfully, Edwin B. Parker, Chairman. 
 
 The President, 
 
 12, Place des Etats Unis, Paris, France. 
 
 APPENDIX XII. 
 
 The Liberated Nations and Their Commercial Organizations. 
 
 Poland — Polish Relief and Supply Corporation. 
 
 Czechoslovakia — Czechoslovakia Relief Corporation. 
 
 Roumania — The Government. 
 
 Kingdom of Serbs, Croats, and Slovenes — The Government. 
 
 Esthonia — Revalis. 
 
 Ukrainia — Ukrailian. 
 
 Latvia — Central Union Consums. 
 
 Lithuania — Vilnis. 
 
 APPENDIX XIII. 
 
 United States Liquidation Commission — W. D., 
 
 Office of General Sales Agent, 
 
 Washington, D. C, May 27, 1920. 
 
 Memorandum to U. S. Liquidation Commission — W. D. 
 
 1. The following statement shows status of sales of animals in A. E. F. : 
 
 Purchaser. 
 
 Quantity. 
 
 Total. 
 
 French individuals 
 
 German individuals 
 
 Bavarian Syndicate 
 
 Czechoslovakia 
 
 Polish Relief and Supply Corporation 
 
 French Government 
 
 Belgian Government 
 
 Grand total 
 
 69,769 
 
 $13,903,346.41 
 
 33,717 
 
 7,243,983.77 
 
 13,039 
 
 2,293,300.43 
 
 10 
 
 3,870.10 
 
 .5,900 
 
 1,662,000.00 
 
 58,984 
 
 10,928,714.85 
 
 490 
 
 97,849.46 
 
 181,909 
 
 35,133,065.02 
 
 E. P. Orton, 
 Major, Cavalry, General Sales Anient. 
 
 183176— 2( 
 
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 UNITED STATES LIQUIDATION COMMISSION. 
 
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118 UNITED STATES LIQUIDATION- COMMISSION. 
 
 APPENDIX XV. 
 
 Contract fob Liquidation of Claims Between United States of America and 
 THE Government of the Kingdom of Belgium. 
 
 This contract entered into this seventh day of November, one thousand nine 
 hundred and nineteen, by and betvs^een the United States of America (herein- 
 after called the United States), acting through the United States Liquidation 
 Commission — War Department, of the first part, and the Government of the 
 Kingdom of Belgium (hereinafter called Belgium), acting through the minister 
 of finance, of the second part WITNESSETH : 
 
 That whereas Belgium has furnished the armed forces of the United States 
 with rail and water transport, the use of locomotives, railway material, and 
 other merchandise and services for the use of the American forces in Europe; 
 
 And whereas the private railroad companies in Belgium have furnished 
 certain railroad transportation to the armed forces of the United States, which 
 all parties desire to include in this settlement ; 
 
 And whereas the Belgian railroads have presented certain ordres de transport 
 signed by American officers which the United States believes should be paid by 
 Great Britain under a capitation agreement concerning American troops serving 
 with the British Armies ; 
 
 And whereas the Belgian railroads have received from the French railroads 
 certain bills for supplies furnished to Belgian locomotives rented to the Ameri- 
 can forces, which charges the United States believes are not properly payable 
 by Belgium ; 
 
 And whereas the amount of the indebtedness of the United States to Belgium 
 by reason of the materials and services referred to in the foregoing paragraphs 
 is difficult of exact determination on account of war conditions ; 
 
 And whereas the United States has sold to Belgium certain merchandise and 
 has performed for Belgium certain services aggregating approximately thirty 
 million dollars (30,000,000.00 dollars) ; 
 
 And whereas by a contract dated March first, A. D. one thousand nine hun- 
 dred and nineteen, Belgium agreed to give and the United States agreed to 
 accept in payment for purchases to the aggregate amount of twenty-four 
 milUon dollars ($24,000,000.00) treasury bills of the Belgian Government, 
 payable not later than April tenth, A. D. one thousand nine hundred and twenty- 
 two, and secured by a first lien on the portion of the German war indemnity 
 payable to Belgium, as more particularly stated in said agreement; 
 
 And whereas by a certain other agreement dated August fifth, A. D. one 
 thousand nine hundred and nineteen, Belgium agreed to give and the United 
 States agreed to accept in payment for sales of subsistence stores, which sales 
 aggregate eight million three hundred and ninety-two thousand ninety-seven 
 dollars fifty-seven cents ($8,392,097.57) notes of the Belgian Government payable 
 on or before August fifth, A. D. one thousand nine hundred and twenty-two, as 
 more particularly stated in said agreement ; 
 
 And whereas by a certain other agreement dated August twenty-first. A, D. 
 one thousand nine hundred and nineteen, Belgium agreed to give and the United 
 States agreed to accept in payment for sales of office fittings at Antwerp, which 
 sales aggregate one hundred and ninety-six thousand four hundred and eighty- 
 three dollars fifty-seven cents ($196,483.57), notes of the Belgian Government 
 payable on or before August twenty-first, A. D. one thousand nine hundred and 
 twenty-two, as more particularly stated in said agreement; 
 
 And whereas all parties hereto desire to adjust any and all claims and de- 
 mands of every kind, nature, and description existing between them up to and 
 
UNITED STATES LIQUIDATION COMMISSION. 119 
 
 including the thirty-first day of October, A. D. one thousand nine hundred and 
 nineteen : 
 
 Now therefore, in consideration of the premises and the other considerations 
 herein stated, it is agreed as follows : 
 
 Abticle One. Belgium agrees to deliver forthwith to the financial requisition 
 officer, Paris, or to such other officer as shall be fully designated to receive the 
 same, treasury bills or notes to the amount of eighteen million five hundred and 
 seventy-four thousand one hundred and thirty-nine dollars seventy-nine cents 
 ($18,574,139.79), as provided in said agreement of March first, A. D. one thou- 
 sand nine hundred and nineteen, and further treasury bills or notes to the 
 amount of eight million three hundred and ninety-two thousand ninety-seven 
 dollars fifty-seven cents ($8,392,097.57), as provided in said agreementrof 
 August fifth, A. D. one thousand nine hundred and nineteen, and further treas- 
 ury bills or notes to the amount of one hundred and ninety-six thousand four 
 hundred and eighty-three dollars fifty-seven cents ($196,483.57), as provided in 
 said agreement of August twenty-first, A. D. one thousand nine hundred and 
 nineteen. All of said obligations shall be in form satisfactory to the Treasurer 
 of the United States and in accordance with the provisions of the several agree- 
 ments above referred to, provided nevertheless that for convenience the parties 
 shall be at liberty to make such changes in the form of said obligations in- 
 cluding dates for payment of principal and interest as may be mutually agreed 
 upon, and including such adjustments as are necessary to arrive at round sums 
 for the amounts of said obligations. 
 
 Aeticle Two. In addition to the foregoing payments Belgium releases the 
 United States from any and all debts, claims, and liabilities whether in con- 
 tract or tort which Belgium now has or may have by reason of any act done 
 or engagement entered into on or before the thirty-first day of October, A. D. 
 one thousand nine hundred and nineteen, for materials or services furnished 
 to or damage done by the American forces in Europe except as hereafter stated. 
 In this release are included all claims for transportation furnished to the 
 American Red Cross, the American Young Men's Christian Association, the 
 American Young Women's Christian Association, the Knights of Columbus, the 
 Jewish Welfare Board, and the American Salvation Army. 
 
 Aeticle Theee. The United States hereby accepts the foregoing obligations 
 and release as full payment for all indebtedness existing between Belgium and 
 the American forces in Europe, and hereby releases Belgium from any and all 
 debts, claims, and liabilities, whether in contract Or tort, which the United 
 States now has or may have by reason of any act done or engagement entered 
 into on or before the thirty-first day of October, A. D. one thousand nine hun- 
 dred and nineteen, for materials and services furnished by or damage done to 
 the American forces in Europe except as hereinafter stated. 
 
 Aeticle Foue. It is expressly understood that the releases contained in 
 Articles Two and Three above do not apply to contracts and other obligations 
 entered into, or incurred in the United States, including an advance of money 
 by the Belgian Government to the credit of Lieutenant James Pede, Quarter- 
 master Corps, on or about July four, one thousand nine hundred and nineteen, 
 but cover only transactions between the parties hereto entered into or occurring 
 in Europe, including all claims for the cargoes of the steamships Auburn and 
 Aledo. Neither party hereto will present or prosecute any claim against the 
 other for any such transaction occurring on or before October thirty-first, one 
 thousand nine hundred and nineteen, except as hereinafter provided. 
 
 Aeticle Five. From the releases contained in Articles Two and Three above 
 are hereby excepted the following obligations arising out of transactions prio* 
 to October thirty-first, A. D. one thousand nine hundred and nineteen. 
 
120 UNITED STATES LIQUIDATION COMMISSION. 
 
 A. The obligation of the Belgian Government to furnish and pay the treasury 
 bills or notes stated in Article One hereof. 
 
 B. The United States will guarantee the payment to Belgium of the ordres de 
 transport signed by American officers, which it contends are properly payable 
 by Great Britain, provided nevertheless that the total amount guaranteed shall 
 in no event exceed the sum of thirty thousand francs (30,000.00 frs.). 
 
 C. The United States will re-pay to Belgium whatever sum it may be obliged 
 to pay the French railroads for the supplies furnished to Belgian locomotives 
 rented to the American forces, not exceeding in the aggregate the sum of 
 twenty-five thousand francs (frs. 25,000.00), provided that a claim for the sum 
 so expended is presented within six months from the date of this instrument. 
 
 Article Six. For the considerations above named Belgium agrees to save 
 the United States harmless from any and all claims of whatever nature against 
 the United States or members of its military or naval forces on the part of any 
 railway company within the limits of the Kingdom of Belgium, whether such 
 railway company is the property of the Belgian Government or not; and also 
 against all claims on the part of any person or corporation furnishing services 
 to the American Army at Antwerp under the authority of the Ministre des 
 Chemins de Fer, Marine, Postes et Telegraphes. 
 
 Article Seven. Belgium further agrees to furnish to the military and naval 
 forces of the United States during the term of three years from the date of 
 these presents, railway transportation in Belgium for persons and property at 
 rates not exceeding those which may at the time be in force for the trans- 
 portation of persons and property of the Belgian. Army. 
 
 Article Eight. Any sums of money which may be payable by the United 
 
 States to Belgium by reason of items B and C of Article Five hereof may at 
 
 •the option of the United States be paid in cash or by the cancellation of an 
 
 equivalent amount of principal of the obligations mentioned in Article One 
 
 hereof. 
 
 Article Nine. Whereas Belgium contends that all debts contracted by her 
 up to November eleventh, A. D. one thousand nine hundred and eighteen, are 
 on the same footing as loans, as far as concerns the application of article two 
 hundred and thirty-two of the treaty of peace between the Allied and Asso- 
 ciated Powers and Germany concluded at Versailles, and of a letter of six- 
 teenth June, A. D. one thousand nine hundred and nineteen, from Messrs. 
 Clemenceau, Woodrow Wilson, and Lloyd-George to M. Hymans, minister of 
 foreign affairs of Belgium. 
 
 It is understood and agreed that the total debts of Belgium contracted for 
 services and materials furnished up to November eleventh, A. D. one thousand 
 nine hundred and eighteen, which are included in this settlement amount to 
 four million five hundred and seventy-five thousand one hundred and thirty- 
 three francs fifty centimes (frs. 4,575,133.50) and that nothing herein contained 
 shall prejudice any action that the Government of the United States may take 
 under or by virtue of said treaty and letter. 
 
 In witness whereof on the day and year first above written this instrument 
 has been executed in four duplicate originals by the United States of America 
 through the chairman of the United States Liquidation Commission — War De- 
 partment, and by the Government of the Kingdom of Belgium through the 
 minister of finance. 
 
 (Signed) Leon Delacy, 
 
 Ministre des Finances. 
 Edwin B. Parker, 
 Chairman, United States Liquidation Commission — War Department. 
 
 Signed by both parties in presence of Frederic Gilbert Bauer, Lieut. Col., J. A. 
 
UNITED STATES LIQUIDATION COMMISSION. 
 
 121 
 
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122 UNITED STATES LIQUIDATION COMMISSION. 
 
 The balance due the U. S. is $27, 094, 195. 22 
 
 And francs 373,465.42 at 5.45 as per bill of sale 68, 525. 71 
 
 Total 27, 162, 720. 93 
 
 For which Belgium in final contract of November 7, 1919, fur- 
 nishes treasury bills or notes — 
 
 Applying on sales contract of Mar. 1, 1919 18, 574, 139. 79 
 
 Applying on sales contract of Aug. 5, 1919 8, 392, 097. 57 
 
 Applying on sales contract of Aug. 21, 1919 196, 483. 57 
 
 27, 162, 720. 93 
 An item of £1,160.00 for transportation of Belgian personnel from England 
 to France on American vessels is not included hereon. The Belgians have 
 accepted this account and order for its payment by draft on London in pounds 
 sterling has been issued, but through delay on part of Belgian treasury de- 
 partment draft has not yet been delivered. It will be delivered in Brussels 
 this week. [Delivered. See cable 1337, Noble to Parker, par. 3.] 
 
 The undersigned have examined the foregoing account on the part of the 
 U. S. Liquidation Commission — War Department and the Government of the 
 Kingdom of Belgium and find same to be correct both as to debits and credits. 
 For the U. S. Liquidation Commission — War Department: 
 
 (Signed) Fredeeic Gilbert Bauer, 
 
 Lieut. Col., Chief Finance Officer. 
 For the Government of the Kingdom of Belgium : 
 
 (Signed) N. Warn ant, Capitaine. 
 
 APPENDIX XVI. 
 
 (1) Contract Between United States of America and Owen Clegg, James 
 Todd, Lt. Col. George W. Parkinson, Arthur Huntley Walker, Socii;T6 
 Anonyme Darracq, a. Darracq & Company (1905) Ltd., Clement Talbot, 
 Ltd., October 1, 1919. 
 
 This contract entered into this first day of October, A. D. 1919, by and be- 
 tween the United States of America (hereinafter called America), acting 
 through the United States Liquidation Commission — War Department, of the 
 one part, and Owen Clegg, James Todd, Lt. Col. George W. Parkinson, Arthur 
 Huntley Walker, Soci4t6 Anonyme Darracq, a corporation organized under the 
 laws of France; A. Darracq & Company (1905) Ltd., a corporation organized 
 under the laws of Great Britain, and Clement Talbot, Ltd., a corporation or- 
 ganized under the laws of Great Britain (hereinafter called the purchasers), of 
 the other part, witnesseth : 
 
 That for the consideration hereinafter mentioned, th^ parties agree as fol- 
 lows: 
 
 Article One. Property and supplies sold. — America agrees to and does 
 hereby sell to the purchasers without warranty of quantity, quality or condi- 
 tion, and the purchasers agree to and do hereby purchase from America all of 
 the surplus motor vehicles, motor property, immobile equipment, spare parts, 
 supplies, oils, gasoline, kerosene, grease, carbide, drums, bidons, etc., of the 
 American Forces in Germany substantially as listed on a schedule hereto at- 
 tached as part hereof, the same consisting of an index summary and sheets 
 numbered from 1 to 15 inclusive, marked " Exhibit A " hereto attached as part 
 hereof (except the property described in subdivisions 6 and c of Article Four 
 
UNITED STATES LIQUIDATION COMMISSION. 123 
 
 hereof), together with all of the motor transport equipment located in Motor 
 Reception Park No. 1 at Sinzig, Germany, in Motor Reception Park No. 3 at 
 Coblenz-Neuendorf and Coblenz-Lutzel, Germany, and m Motor Reception Park 
 No. 4 at Bitburg, Germany, whether the same is or is not listed on Exhibit A, 
 and America will not, without the purchasers' consent, increase or decrease the 
 amount of motor transport equipment contained in said motor reception parks 
 on September 19, 1919. 
 
 Article Two. Title. — Title to the supplies and property hereby sold shall pass 
 to the purchasers upon the signing of this agreement. 
 
 Article Three. Purchase price and terms of payment. — The purchase price 
 shall be three million two hundred and fifty thousand pounds st«rling_ 
 (£3,250,000), payable in the following installments on the following dates: 
 
 October 1, 1919. Twenty thousand pounds £20, 000 
 
 October 11, 1919. One hundred thousand pounds 100,000 
 
 November 1, 1919. Two hundred five thousand pounds 205, 000 
 
 December 1, 1919. Two hundred fifty thousand pounds 250, 000 
 
 January 1, 1920. Six hundred sixty-eight thousand seven hundred 
 
 fifty pounds 668, 750 
 
 February 1, 1920. Six hundred sixty-eight thousand seven hundred 
 
 fifty pounds 668, 750 
 
 March 1, 1920. Six hundred sixty-eight thousand seven hundred fifty 
 
 pounds 668, 750 
 
 April 1, 1920. Six hundred sixty-eight thousand seven hundred fifty 
 
 pounds 668, 750 
 
 3, 2.50, 000 
 
 The first payment of twenty thousand pounds (£20,000) has been made and 
 America acknowledges the receipt thereof. All payments after the first pay- 
 ment of twenty thousand pounds (£20,000) shall be made to the chief quarter- 
 master of the American forces in Germany, now stationed at Coblenz, through 
 the general sales agent, American forces in Germany, or, at the election of the 
 War Department of America, at such bank or trust company in London, Eng- 
 land, or Paris, France, as the said War Department may designate. 
 
 Article Four. Shortages or excesses of property or supplies sold. — A check 
 shall be made by the representatives of the parties before November 7th, 1919, 
 of the property and supplies hereby sold. 
 
 In the event that such check should disclose that there are substantially 
 lesser or greater quantities of any of the property and materials sold than 
 the quantities thereof listed in Exhibit A, the "prices" of the property or 
 materials short and of the property and materials in e:j:cess shall be deter- 
 mined in the following manner, and the net difference between the total 
 " prices " of all of the property or material short and the total " prices " of 
 all of the property or materials in excess shall be deducted from the purchase 
 price provided in Article Three, if such net difference discloses a net shortage 
 and shall be added thereto if such net difference shows a net excess. 
 
 (a) The "prices" of the property or materials described in Exhibit A, and 
 of similar property and materials, are agreed to be (but solely for the purposes 
 of this article and for the purposes of subdivision (d) of Article Five hereof) 
 the following: 
 
 Of the motor vehicles and equipment listed at pages 1 to 12, inclusive, of 
 Exhibit A the "price" of each unit is 35^ per centum of the unit resulting 
 value thereof, as set forth in Exhibit A, ascertained as to each article by 
 dividing the " resulting value " of such articles by the number thereof, as 
 shown on said pages of said Exhibit A. Provided, however, that the value 
 
124 UNITED STATES LIQUIDATION COMMISSION. 
 
 of the E and F class vehicles referred to in subdivision (h) of this Article 
 shall be ascertained and credited as provided in said subdivision. 
 
 Of the gasoline, oil, etc., listed on page 15 of Exhibit A, the " price " of each 
 unit is the unit cost thereof as set forth on said page of said Exhibit A. 
 
 Of the immobile equipment and hand tools in M. T. C. Overhaul Park, 
 Coblenz, Germany, and of the spare parts in spare parts depot, Coblenz, Gerr 
 many, listed on pages 13 and 14 of said Exhibit A, the " price " of each unit 
 is the unit resulting value thereof ascertained as hereinbefore provided, from 
 inventories which the general sales agent, American forces in Germany, has 
 on hand and will submit to the purchasers. 
 
 Of the solid tires, casings, tubes, rims, and tire carriers in spare-parts 
 depot, Coblenz, Germany, listed on page 14 of Exhibit A, the " price " of each 
 unit is the unit resulting value thereof, ascertained as hereinbefore provided, 
 from the " resulting values " and " numbers " set forth on said page 14 of 
 Exhibit A. 
 
 {h) There are excepted from this sale such E and F class vehicles listed on 
 Exhibit A as America may require for repair of vehicles now in use by the 
 American forces in Germany, and shall have removed from said motor re- 
 ception parks before October 5, 1919, and the purchasers shall be credited on 
 account of the purchase price provided in Article Three hereof an amount equal 
 to 35i per centum of the unit resulting value of said E and F vehicles so 
 excepted, as shown in said Exhibit A, multiplied by the number of units 
 thereof. 
 
 (c) There are also excepted from this sale the seven 25-kilowatt generator 
 sets installed in the shop at Coblenz-Lutzel, and the purchasers shall be 
 credited therefor on account of the purchase price provided in Article Three 
 hereof an amount equal to the full unit resulting value thereof, multiplied 
 by the number of units thereof; but the purchasers shall have the right to 
 use these generator sets in connection with the operation of the repair shop 
 for such time as they desire, but not bey<md the time that the American 
 forces, in Germany remain in military possession of said repair shops. 
 
 (d) The amounts to be credited or debited, as provided in this article, on 
 account of the purchase price provided in Article Three, shall be credited or deb- 
 ited, as the case may be, on account of the last instalment of said purchase price. 
 
 (e) On or before November 7, 1919, the adjustment of the purchase price 
 provded by this article shall be made on behalf of the purchasers by said 
 Lt. Col. George W. Parkinson, or such other person as the purchasers shall 
 designate in writing, and, on behalf of America, by the general sales agent, 
 American forces in Germany, and a written statement of the result of said ad- 
 justment in six duplicate originals signed by them, shall, on or before said 
 date, be made, and one copy thereof shall be annexed to each copy of this con- 
 tract as part thereof, and shall have the same force and effect as though the 
 same had been executed by the parties hereto as part hereof. 
 
 Article Five. Security. — As security for the performance by the purchasers 
 of their obligations under this agreement they have redelivered to America, 
 which acknowledged the receipt thereof, all of the property and supplies hereby 
 sold to them, to have and to hold the same in pledge in accordance with the 
 following terms and conditions : 
 
 (a) America shall hold said property, at the sole risk of the purchasers, and 
 after November 1, 1919, will be obligated only to furnish such guards, for a 
 period of not exceeding one year from October 1, 1919, as may be necessary 
 in the judgment of the conmianding general, American forces in Germany, to 
 give military protection thereto. The expenses of America for the use of the 
 land and buildings on or in which said property, after November 1, 1919, shall 
 
UNITED STATES LIQUIDATION COMMISSION. 125 
 
 be situated, shall be paid by the purchasers. If after November 1, 1920, any 
 of the property hereby sold shall remain in the possession of America, America 
 may remove and store the same for, in the name of, and for the account and 
 at the risk of the purchasers, and the cost of said removal shall be repaid by 
 the purchasers to America and shall constitute a lien on said property, and 
 the cost of the storage thereof shall constitute a lien thereon in favor of the 
 person, firm, or corporation undertaking the storage thereof. 
 
 (b) In the event of default by the purchasers in the payment of the instal- 
 ments of the purchase price amounting to three hundred and five thousand 
 pounds (£305,000) payable October 11th and November 1, 1919, or in the pay- 
 ment of the instalment of the purchase price amounting to two hundred and 
 fifty thousand pounds (£250,000) payable December 1, 1919, America may, aftei" 
 giving ten days' written notice thereof to the purchasers in the manner herein- 
 after provided, without resort to judicial proceedings or otherwise, declare 
 this agreement to be canceled, and thereupon, this agreement shall be canceled, 
 and all of the property and supplies hereby sold by America to the purchasers 
 shall revert to and become the absolute property of America, and the sums paid 
 by the purchasers to America prior to such cancellations shall be retained by 
 America as liquidated damages for breach of this contract, and the parties 
 hereby agree that said sums, in said event, would fairly represent the amount 
 of damages that would be sustained by America on account of said breach. 
 
 (c) In the event of the default by the purchasers in the payment of any of 
 the installments of the purchase price or in the payment of any other sums 
 payable by the purchasers to America under this agreement, America may 
 declare the entire unpaid balance of the purchase price, or any part thereof, 
 immediately due and payable, and, thereupon, the same shall be due and pay- 
 able, and America may, after giving ten days' written notice thereof to the 
 purchasers in the manner hereinafter provided, without judicial proceedings of 
 any kind, sell at public or private sale, in bulk or in installments, and from time 
 to time, at such price or prices as America, in her sole discretion may deem to 
 be reasonable under the circumstances, any or all of the property hereby 
 pledged, and shall apply the net proceeds thereof after deducting the expenses 
 of sale and delivery, to the payment of the amount due to America under this 
 agreement, and shall pay over the balance thereof, if any, to the purchasers. 
 
 If after any sale as aforesaid there then should remain unpaid any balance 
 payable under this agreement by the purchasers to America, the purchasers 
 shall, jointly and severally, be liable for the payment thereof to America, and 
 if there then should remain in America's possession any of the property hereby 
 pledged the same shall remain subject to the lien of said pledge and may be 
 sold as hereinbefore provided and the proceeds applied as hereinbefore provided. 
 
 (d) After the payment by the purchasers of the installments of twenty thou- 
 sand pounds (£20,000) payable Ocober 1, 1919, and of the two installments of 
 one hundred thousand pounds (£100,000) October 11th, 1919, and two hundred 
 five thousand pounds (£205,000) November 1st, 1919, the purchasers may, from 
 time to time, and upon paying to America additional amounts equal to the 
 *' prices" thereof ascertained as provided in subdivision (a) of Article Four 
 hereof, and upon giving proper receipts therefor, take possession of any of the 
 property or supplies hereby pledged ; and the payments made as aforesaid shall 
 be credited on account of the installments of the purchase price payable as pro- 
 vided in Article Three (adjusted as provided in Article Four hereof) and there- 
 upon said property and supplies so delivered shall be free from the lien of this 
 pledge. 
 
 When the aggregate amount of all of the sums paid by the purchasers to 
 America, under this agreement, shall equal the entire amount payable by the 
 
126 UNITED STATES LIQUIDATION COMMISSION. 
 
 purchasers to America thereunder, all of the remaining property and supplies 
 hereby sold shall be released from the lien of this pledge and shall be forthwith 
 delivered to the purchasers. 
 
 Aeticle Six. Miscellaneous provisionst — The purchasers may from time to 
 time repair and improve motor vehicles and equipment in the Overhaul Park, 
 Coblenz, Germany, sold under this agreement. 
 
 Article Seven. The obligations of the purchasers under this agreement shall 
 be joint and several. 
 
 Article Eight. This contract shall be interpreted in accordance with the laws 
 of America as the same prevail in the District of Columbia. 
 
 Article Nine. The purchasers designate their office in Coblenz or Coblenz- 
 Lutzel as a place where America may deliver any written notice provided for by 
 this agreement or otherwise, and it shall also constitute a delivery of any such 
 notice when the same has been deposited in the German or French mails, 
 registered, postage prepaid, in an envelope addressed to Soci6t§ Anonyme 
 Darracq, at 33 Quai du General Gallieni, Surennes, France. 
 
 Article Ten. The Quartermaster's Corps of the American forces in Germany 
 shall sell to the personnel employed by the purchasers to handle the motor 
 equipment, on orders signed by the purchasers or their authorized representa- 
 tives, commissary food supplies at the prices charged therefor to civilian em- 
 ployees of the American forces in Germany, provided said food supplies are used 
 solely for the subsistence of said personnel and for no other purpose. 
 
 Article Eleven. America will not permit within the area of Germany subject 
 to its military control any tax or duty to be imposed or collected by Germany 
 on account of the importation into Germany of any of the property or supplies 
 hereby sold or on account of the exportation thereof by the purchasers from 
 Germany. 
 
 Article Twelve. The purchasers will not sell in France any of the property 
 purchased without first procuring the consent in writing of M. Paul Morel, le 
 Sous-Secretaire d'Etat aux Finances, or of some other authorized representative 
 of the French Government. 
 
 Article Thirteen. The commanding officer of the American forces in Ger- 
 many will issue such passes or permits as may be necessary for the personnel 
 employed by the purchasers to handle said motor equipment so that said per- 
 sonnel and persons negotiating with the said purchasers can enter and leave the 
 occupied territory without hindrance or delay at all times. 
 
 Article Fourteen. So long as the American forces in Germany shall be 
 entitled by requisition or lease to use the motor parks, grounds, and group of 
 buildings known as the " Overhaul Park and Annex, Coblenz-Lutzel," but not 
 longer than may be necessary for the purchasers to repair and ship the motor 
 transport vehicles hereby sold, and in no event later than October 1, 1920, 
 unless the commanding general, American forces, extend said period, the pur- 
 chasers may use said grounds and buildings for the purpose of housing the per- 
 sonnel necessary to handle said property or for other necessary pui-poses con- 
 nected with the carrying out of this agreement. The cost to America for the 
 use and occupation of said grounds and buildings, while used as aforesaid by 
 the purchasers, shall be reimbursed to America by the purchasers. ' 
 
 Article Fifteen. Each of the purchasers severally irrevocably constitutes and 
 appoints the consul general and the vice consul of Great Britain at New York 
 City, New York, and their successors, and each of them, his or its attorney in 
 fact with full power for him or it and in the name, place, and stead of him or 
 it, to receive or accept service of judicial process in any action, suit, or pro- 
 ceeding which America may bring against him or it on account of this agree- 
 ment, or for the enforcement of the obligations thereof. 
 
UNITED STATES LIQUIDATION COMMISSION. 127 
 
 Article Sixteen. The general sales agent, American forces in Germany, or 
 his successor, or such other person as the War Department of America may 
 designate to the purchasers in writing, shall be the representative of America 
 through whom shall be transmitted all reports, notices, or other communica- 
 tions relating to this agreement which the purchasers may desire to deliver or 
 communicate to America. 
 
 In witness whereof, on the day and year first above written, this contract 
 has been executed in six parts, each having the full force and effect of an 
 original, by the United States of America, acting through the United States 
 Liquidation Commission — War Department, Edwin B. Parker, chairman, of the 
 one part; and by Owen Clegg; James Todd; Lt. Col. George W. Parkinson; 
 Arthur Huntley Walker ; Soci^te Anonyme Darracq, acting through Owen Clegg, 
 duly authorized thereto; A. Darracq & Company (1905), Ltd., acting through 
 A. Huntley Walker and James Todd, duly authorized thereto ; and by Clement 
 Talbot, Ltd., acting through A. Huntley Walker, duly authorized thereto, on 
 the other part. 
 
 United States of Ameeica, 
 By Edwin B. Parkeb, 
 Chairman, United States Liquidation Commission — War Department. 
 
 Owen Clegg. 
 James Todd. 
 
 G. W. Parkinson, Lt. Col. 
 Arthur Huntley Walker. 
 Soci^Tfi Anonyme Darracq, 
 By Owen Clegg, 
 
 Managing Director. 
 A. Darracq & Company (1905), Ltd., 
 By A. Huntley Walker, James Todd. 
 
 Clement Talbot, Ltd., 
 By A. Huntley Walker. 
 Witness as to Edwin B. Parker, Owen Clegg, James Todd, Lt. Col. George W. 
 Parkinson, Arthur Huntley Walker. 
 
 (Signed.) Edward T. Noble. 
 
 (2) Contract Between United States of America and Owen Clegg et al., 
 Dated December 3, 1919, Supplementary to Contract Dated October 1, 
 1919. 
 
 Contract between United States of America and Owen Clegg et al., dated 
 December 3, 1919, supplementary to contract dated October 1, 1919. 
 
 Whereas, heretofore, to wit, on the 1st day of October, A. D. 1919, a contract 
 (hereinafter called "Original contract") was entered into between the United 
 States of America ( therein and hereinafter designated " America " ) on the 
 one part, and Owen Clegg and others (therein designated "Purchasers" and 
 hereinafter, together with The Motor Organizations, Limited, designated " Pur- 
 chasers ") on the other part, a copy of which said original contract (omitting the 
 exhibits thereto) is hereunto attached and made a part hereof, marked for 
 identification "Exhibit A"; and 
 
 Whereas, the said The Motor Organizations, Limited, a corporation incorpo- 
 rated and existing under and by virtue of the laws of Great Britain, of which 
 Sir Percival Perry, James Todd, and Col. B. J. H. Fitzgerald are directors, 
 has acquired an interest in and assumed obligations arising under the said 
 original contract; and 
 
 Whereas it has been found impracticable to complete the checking of the 
 properties acquired by the purchasers under the terms of the said original con* 
 
128 UlTITED STATES LIQUIDATION COMMISSION. 
 
 tract and make the adjustments and state an account on or before November 7, 
 1919, as stipulated for in Article Four of the original contract ; and 
 
 Whereas the purchasers have made the payments stipulated for in Article 
 Three of the said original contract, which payments so made aggregate in 
 amount £325,000, leaving a balance due by the purchasers to America of 
 £2,925.000 (subject to additions or deductions in accordance with the pro- 
 visions of Article Four of the original contract) ; and 
 
 Wliereas the purchasers desire an extension of time and a readjustment of 
 the dates of payment of such balance ; and 
 
 Whereas Sir Percival Perry has assumed the active executive management 
 of The Motor Organizations, Limited, and as such is in charge of conditioning 
 and marketing the property acquired by the purchasers under the terms of the 
 said original contract: 
 
 Note, therefore, in consideration of the premises and of the mutual under- 
 takings herein mentioned, it is agreed between the parties hereto that the 
 original contract shall be and it is hereby modified and amended in the follow- 
 ing respects : 
 
 Section 1. The Motor Organizations, Limited, joins herein for the purpose 
 of assuming, and does in all things assume, jointly and severally with the 
 other purchasers, the obligations and undertakings arising under the said 
 original contract and this supplement thereto, without, however, in any wise 
 or to any extent releasing or modifying the joint and several obligations of the 
 purchasers named in the said original contract. 
 
 Section 2. Sir Percival Perry joins herein for the purpose of agreeing, 
 jointly and severally, with the other purchasers, and does hereby agree, jointly 
 and severally, with the other purchasers, that so long as the purchase price, 
 or any part of it, remains unpaid, he will (unless released from this obligation 
 by America) be and remain the active and directing executive in control of 
 and in active charge of the conditioning and marketing of the property 
 acquired by the purchasers under the said original contract and any and all 
 amendments thereto. 
 
 Section 3. The time for checking the said property, making the adjust- 
 ments and stating the account, as provided by Article Four of the said 
 original contract, shall be extended, and is hereby extended from November 7, 
 1919, to January 15, 1920. It is further agreed between the parties hereto 
 that in making the said check, adjustments and statement of account America 
 shall be represented by Lieutenant Colonel T. H. Kruttschnitt, and the 
 purchasers shall be represented by Lieutenant Colonel G. W. Parkinson (or in 
 the event of his inability or refusal to act, then by Sir Percival Perry) ; and in 
 the event of their disagreement with respect to the classification or quantity of 
 the equipment or supplies, or any other matter arising in connection with the 
 said checking, adjustments, and the statement of an account, as provided for in 
 the said Article Four of the said original contract, then in such event the de- 
 cision of Lieutenant Colonel T. H. Kruttschnitt shall be final. 
 
 Section 4. The purchasers shall immediately on the signing of this contract 
 deposit in the Guaranty Trust Co. of New York (Paris Branch) the sum of 
 two hundred fifty thousand pounds (£250,000) in the name of Lieutenant 
 Colonel T. H. Kruttschnitt, A. M. C, trustee, and the purchasers may draw 
 upon said amount by checks countersigned by said trustee to defray the ex- 
 penses of repairing, improving, and selling the property purchased under this 
 contract; provided that at any time Lieutenant Colonel T. H. Kruttschnitt 
 may require the purchasers to reinstate within ten days the original amount 
 deposited if in his opinion or in the opinion of the War Department of the 
 United States such reinstatement is necessary to the interests of the L^nited 
 States, and that upon ten days' written notice to the purchasers said trustee 
 
UNITED STATES LIQUIDATION COMMISSION. 129 
 
 may withdraw the entire amount of £250,000 to the credit of the United States 
 on account of the purchase price of this contract; provided, further, that on 
 July 1, 1920, any remaining balance of the two hundred fifty thousand pounds 
 will be applied upon the payment due on that date, as provided for in section 5. 
 Section 5. The purchase price now remaining unpaid, namely, £2,925,000 
 (subject to additions or deductions, in accordance with the provisions of Article 
 Four of the original contract and the provisions of this supplemental contract), 
 shall be paid in three equal installments, the first maturing July 1, 1920, the 
 second maturing December 1, 1920, and the third maturing April 1, 1921. The 
 purchasers jointly and severally agree to pay, on the entire balance of said 
 purchase price remaining unpaid on April 1, 1920, interest from said date 
 until paid at the rate of five per centum (5%) per annum; the provisions of 
 the original contract with respect to the payment of the principal to govern also 
 the payment of said interest. 
 
 Section 6. Save as herein modified or amended, the said original contract 
 shall be and it is hereby in all things continued in effect, ratified, confirmed, 
 and reaffirmed. 
 
 In witness whereof, on the day and year first above written, this contract 
 has been executed in six parts, each having the full force and effect of an 
 original, by the United States of America, acting through the United States 
 Liquidation Commission — War Department. Edwin B. Parker, chairman, of 
 the one part; and by Owen Clegg, James Todd, and George W. Parkinson (lieu- 
 tenant colonel); Arthur Huntley Walker; Soci§t6 Anonyme Darracq, acting 
 through Owen Clegg, duly authorized tiiereto ; A Darracq & Company (1905), 
 Ltd., acting through A. Huntley Walker and James Todd, duly authorized 
 thereto; Clement Talbot, Ltd., acting through A. Huntley Walker, duly au- 
 thorized thereto; by Sir Percival Perry individually, and by The Motor Or- 
 ganizations, Limited, acting through James Todd and Sir Percival Perry, Colonel 
 Brinsley John Hamilton Fitzgerald, duly authorized thereto, on the other part. 
 
 United States of America, 
 By Edwin B. Paeker, 
 Chairman, United States Liquidation Commission — War Department. 
 Owen Clegg. 
 James Todd. 
 
 G. W. Parkinson, Lt. Col. 
 Arthur Huntley Walker. 
 Societe Anonyme Darracq, 
 By Owen Clegg, Managing Director. ■ 
 
 A. Darracq & Company (1905), Ltd., 
 By A. Huntley Walker. 
 James Todd. 
 Clement Talbot, Ltd., 
 By A. Huntley Walker. 
 Percival Perry. 
 
 The Motor Organizations, Limited, 
 By James Todd. 
 Percival Perry. 
 
 Col. Beinsley John Hamilton Fitzgerald. 
 Witness as to Edwin B. Parker : 
 
 Edward T. Noble. 
 Witness as to all the signatures of G. W. Parkinson, A. Huntley Walker, Owen 
 Clegg, and .Tames Todd : 
 
 •T. H. Watson, 150 New Bond St., London, Secretary. 
 183176—20- — 9 
 
130 
 
 UNITED STATES LIQUIDATION COMMISSION. 
 
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UNITED STATES LIQUIDATION COMMISSION. 131 
 
 APPENDIX XVIII. 
 
 (1) Final Contract of Settlement, 
 british artillery and artillery ammunition convention, dated august 
 
 9, 1919. 
 
 Agreement between the Government of His Britannic Majesty and the Govern- 
 ment of the United States with respect to artillery and artillery ammunition. 
 
 DEFINITIONS. , ~ ~ 
 
 The term " Great Britain," as used herein, shall be taken to mean the Gov- 
 ernment of His Britannic Majesty. The term " United States," as used herein,, 
 shall be taken to mean the Government of the United States of America. The 
 term " Artillery," as used herein, shall be taken to mean artillery of all natures 
 and calibers, including components, equipment, and spare parts, unless otherwise 
 specified. The term " ammunition," as used herein, shall be taken to mean artil- 
 lery ammunition of all natures and calibers referred to in the agreement, in- 
 cluding components, unless otherwise specified. 
 
 RECITALS. 
 
 From time to time, prior to October 19th, 1918, the United States placed 
 orders with or entered into contracts with Great Britain, by which Great Britain 
 agreed to manufacture, or caused to be manufactured and delivered to United 
 States, certain artillery and ammunition of the natures and the calibers here- 
 inafter mentioned. All such agreements were merged into and superseded by 
 that certain agreement entered into between the United States and Great 
 Britain on the 19th day of October, 1918, as evidenced by a letter from Edward 
 R. Stettinius, special representative of the Secretary of War of the United 
 States of America to the ministry of munitions of war, London, England, and 
 the indorsement of acceptance thereon by Winston S. Churchill, minister of 
 munitions, acting on behalf of His Britannic Majesty's Government, which 
 letter and acceptance, together with Schedules I, II, and III, accompanying 
 and forming a part thereof, are hereunto attached, made a part hereof, and 
 marked for identification " Exhibit A." Schedules I and II thereof set forth the 
 definitive orders placed under the aforesaid agreement. 
 
 In due time the United States notified Great Britain that it would not exer- 
 cise its option to purchase the artillery specified in Schedule III of the said 
 letter of October 19, 1918. Following the signing of the armistice of November 
 11. 1918, and on or about November 14, 1918, the United States notified Great 
 Britain to suspend all further deliveries of artillery and ammunition provided 
 for by the aforementioned contract of October 19, 1918. 
 
 The parties hereto now desire, as far as practicable, to relieve the United 
 States from its obligation to accept and pay for the artillery and ammunition, 
 covered by the said contract of October 19, 1918, in so far as this can be accom- 
 plished without loss to Great Britain, and so to readjust the calibers, types, 
 and natures of said artillery and ammunition to be taken and paid for by the 
 United States as will best meet its needs under changed conditions. 
 
132 
 
 UNITED STATES LIQUIDATION COMMISSION. 
 
 AGKEEMENT. 
 
 Now, therefore, in consideration of the facts as embraced in the foregoing 
 recitals, and of the respective undertakings of the contracting Governments,' 
 parties hereto, it is mutually agreed as follows : 
 
 Article I. Great Britain will deliver to the United States, and the United 
 States will take artillery and artillery ammunition as follows, and pay to Great 
 Britain the cost thereof, to Great Britain being a total of £6,637,598. 
 
 It is understood and agreed between the contracting parties that this amount, 
 as set forth in detail below, represents as nearly as possible the cost of articles 
 to be supplied under this agreement, without further discussion or determina- 
 tion of prices. 
 
 GUN EQUIPMENTS. 
 
 Nature. 
 
 Cost per 
 unit. 
 
 Number 
 of units. 
 
 Total 
 value. 
 
 8-inch howitzer, Mark VII 
 
 8-inch howitzer, Mark VI 
 
 6-inch gun, Mark XIX 
 
 6-inch gun bodies complete with breech mechanisms 
 60-pounder gun 
 
 £6,295 
 6,390 
 6,374 
 2,060 
 5,210 
 
 84 
 64 
 100 
 50 
 
 £528,780 
 408, 960 
 637, 400 
 103,000 
 
 1,042,000 
 
 2, 720, 140 
 
 GUN AMMUNITION. 
 
 8-inch high explosive 
 
 6-inch gun high explosive. . 
 
 Shrapnel 
 
 60-pounder high explosive . 
 
 Shrapnel 
 
 High explosive 
 
 Shrapnel 
 
 Total 
 
 Grand total. 
 
 1 170,000 
 125,000 
 125,000 
 2 33,500 
 2 33,500 
 166,500 
 166,500 
 
 £2,295,000 
 243, 750 
 256,250 
 201,000 
 206, 583 
 349. 125 
 365, 750 
 
 3,917,458 
 6,637,698 
 
 Component. 
 
 « Complete roimds. 
 
 Of the 200 60-pounder guns embraced in the foregoing schedule Great Britain 
 may, at its election, furnish sixty (60) partly worn guns, in which event it 
 will without further expense to the United States deliver with each partly 
 worn gun a new tube for relining same. The said tubes shall be rough bored 
 and furnished on the outside for shrinkage. 
 
 The term "complete rounds" as used in the foregoing schedule (and else- 
 where in this contract) shall be taken to mean shells fully assembled, loaded 
 (or filled), fuzed (or with fuzes packed separately, following the standard 
 practice for safety in shipment and storage) and ready for use, together with 
 the propellant and primer. The term " components "as used in the foregoing 
 schedule (and elsewhere in this contract) shall be taken to mean that all of 
 the parts of the shell shall be complete in themselves, ready for assembling 
 and loading (or tilling) but unassembled, and the shells unloaded (or un- 
 filled) ; the propellant and components of the explosive charges will be de- 
 delivered in bulk in satisfactory containers, and the cartridge bags and primers, 
 fuzes, and other components will be delivered separately. 
 
 The condition of the artillery material to be delivered under this contract 
 will be as follows : 
 
 # (a) Except as otherwise specifled all material to be new or relined guns 
 with no tiring except the normal proof tiring and carriages either new or 
 
UNITED STATES LIQUIDATION COMMISSION. 133 
 
 repaired. The new and i-elined guns and the new and overhauled and repaired 
 carriages will have gone through and passed the standard British inspection 
 for material to be passed into service. 
 
 (b) 8" howitzer, Mark VII. — Approximately 30 of these will be new — ^that is, 
 the guns will be new or relined, having been fired only the usual number of 
 proof rounds. The carriages will be new or thoroughly overhauled and re- 
 paired. The balance of these howitzers will have been fired a limited number 
 of rounds, in no case more than 1,000, and it will be understood that no 
 howitzers will be accepted which show more wear than the normal wear for 
 1,000 full rounds. The carriages will be new or entirely overhauled and re- 
 paired. 
 
 (c) 8" howitzer, Mark VI. — These will all be what British term "new ma- 
 terial " — that is', guns either new or relined, fired only the usual number of proof 
 rounds. Carriages either new or entirely overhauled and repaired. 
 
 (d) 6" guns, Mark XIX. — Same remarks as for 8" howitzers, Mark VI. 
 
 (e) 60-poiinder guns. — 140 of these guns and carriages will be new — that is, 
 guns will be new or relined and fired only the usual number of proof rounds. 
 Carriages either new or entirely overhauled and repaired. The additional 60 
 60-pounder guns will be partly worn; as many as possible will be less than 
 50% worn. Carriages will either be new or entirely overhauled and repaired. 
 
 Article II. Tlie United States agrees to deliver and Great Britain agrees to 
 accept ninety thousand (90,000) complete rounds of 9.2" howitzer ammunition, 
 heretofore manufactured by Great Britain, now owned by the United States 
 and in the hands of the American Expeditionary Forces, in France. 
 
 Article III. In consideration for the undertaking on the part of the United 
 States, set forth in Article II hereof, Great Britain agrees to deliver, and the 
 United States agrees to accept in addition to the ammunition specified in 
 Article I. 
 
 (a) Fifty thousand (50,000) rounds (components) H. E. shells for 60-pounder 
 guns. 
 
 (&) Two hundred and sixty thousand (260,000) rounds (components) of 
 shrapnel for 60-pounder guns. 
 
 It is understood, however, that the figure of the 90,000 complete rounds of 
 9.2" howitzer ammunition referred to in Article II is approximate only, and 
 that the number may run somewhat more or less than 90,000 rounds. 
 
 Article IV. The 67,0(X) complete rounds of artillery ammunition for 60- 
 pounder guns referred to in Article I shall be delivered by Great \Britain at 
 Calais, France, and shall there be placed by Great Britain free of charge to the 
 United States upon vessels designated by the United States, the United States 
 accepts responsibility for an accident or explosion occurring in the course of 
 loading on the said designated vessels. 
 
 The artillery units and remaining artillery ammunition referred to in Articles 
 I- and III shall be delivered by Great Britain at a port or ports to be agreed in 
 Great Britain (with the exception of explosives, which shall be delivered at 
 Liverpool, except 873 short tons of cordite, which shall be delivered free on 
 rail at I'Assomption, Canada, and 402 short tons of nitrocellulose, which shall be 
 delivered free on rail at Upton's Pit, Canada) and shall there be placed by 
 the United States upon vessels designated by them. 
 
 But if later the situation should arise that the United States have not 
 sufficient personnel to carry out this work, the material shall be placed by 
 Great Britain upon ships to be designated by the United States. 
 
 During the period in which the United States has the necessary organization 
 at the port of delivery, the United States shall bear ^11 the costs of off-loading 
 
134 UNITED STATES LIQUIDATION COMMISSION. 
 
 from railway trucks and loading on to the ship and during the period when 
 Great Britain undertakes the loading of the ship, Great Britain in its turn shall 
 Jbear these charges. 
 
 From time of delivery in truck at the port or rail, as the case may be, the 
 United States accepts responsibility for any accident or explosion occurring 
 from the said material. Great Britain accepts responsibility for any accident 
 or explosion occurring from said material until it is delivered at the port or 
 rail and, during the period, if any, when Great Britain undertakes the loading 
 under par. 3 of this article until it is delivered into ships. 
 
 The 90,000 complete rounds of 9.2" howitzer ammunition referred to in 
 Article II shall be delivered by the United States to Great Britain on vessels 
 at a port or ports of Great Britain to be agreed, and there unloaded from the 
 vessels by Great Britain, and Great Britain accepts liability for any accident 
 or explosion occurring in the course of unloading at the port of delivery. 
 
 Article V. Each four of the artillery units referred to in Article I shall 
 comprise the equipment and store prescribed for a battery of four pieces in 
 the equipment lists annexed hereto, marked for identification. Exhibits " B," 
 *' C," " D," and " E." 
 
 Article VI. Payment for the artillery and ammunition specified in Article 
 I hereof shall be made as follows: Ninety per centum of the contract price 
 thereof shall be payable to Great Britain upon the execution of this contract, 
 payment of a bill for this proportionate amount having been authorized by the 
 United States Liquidation Commission, War Department, as payment on ac- 
 count and in advance of deliveries and five per centum thereof shall be pay- 
 able upon the completion of deliveries of the ammunition and of the artillery, 
 equipments, and stores specified in Exhibits " B," " C," " D," and " E," hereto 
 annexed, except the stores described in these exhibits as " spares," and five per 
 centum thereof upon completion of all deliveries due under Article I of the 
 contract. 
 
 Article VII. In addition to the nonual equipment of these batteries, as 
 specified in Article V, Great Britain agrees to deliver, and the United States 
 agrees to accept and pay for the additional spare parts for these gun equip- 
 ments shown on list hereto attached and marked for identification Exhibit " F." 
 
 The United States agrees to pay to Great Britain (in addition to the total 
 sum of £6,637,598 referred 'to in Article I), upon delivery of these additional 
 spare parts, the unit prices as set forth on this list, which represent the cost 
 of these articles without profit to Great Britain. Where prices are not specified 
 in the list the prices to be paid shall be sums representing cost of the articles 
 without profit to Great Britain. 
 
 Article VIII. The obligations arising under this agreement shall completely 
 and in all things supersede those arising under the aforementioned contract 
 of October 19, 1918, and all other agreements heretofore made, binding the 
 United States to accept from Great Britain and pay for artillery or artillery 
 ammunition : Provided, however, the United States shall not be relieved of its 
 obligation to pay for all artillery components, spare parts and ammunition, 
 heretofore delivered to it by Great Britain prior to November 14, 1918, or that 
 were in the course of delivery on that date and were actually delivered prior 
 to January 1st, 1919, and for which it has not yet paid. 
 
 ARTICLE IX. Great Britain agrees and obligates itself (so long as it may 
 continue to produce the same) at cost to it, to supply the United States with 
 spare parts and materials or components required by the United States from 
 time to time for the maintenance of the artillery delivered by Great Britain to, 
 and paid by, the United States in pursuance of the terms hereof. 
 
Approved : 
 
 UNITED STATES LIQUIDATION COMMISSION. 135 
 
 Article IX. Great Britain agrees and obligates itself to supply the United 
 States with two complete sets of prints, suflSciently translucent to have blue 
 prints made therefrom, of all general and detailed drawings of the artillery and 
 ammunition to be delivered hereunder, including drawings of all tools and ac- 
 cessories, sights and accessory vehicles, to be delivered with the foregoing 
 artillery and ammunition. 
 
 The United States agrees and obligates itself not to publish the said prints 
 and to treat as confidential any prints which are so marked. 
 
 In witness whereof, the undersigned have subscribed these presents upon 
 behalf of their respective Governments, as of this, the 9th day of August, 
 A. D. 1919. — -^ 
 
 (Sgd.) E. D. Bricker, 
 
 Colonel, Ordnance Department, for Chief of Ordnance, 
 
 War Department, United States of America. 
 (Sgd.) A. Watson, 
 
 Representative of Minister of 
 
 Munitions of Great Britain. 
 Witness : 
 
 (Sgd.) R. E. Kimball, 
 
 Lt. Col., Ord. Dept. 
 
 United States Liquidation Commission, 
 War Department. 
 (Sgd.) Edwin B. Parker, Chairman. 
 
 <2) Covering Letter on Artillery and Ammunition Settlement — Judge 
 
 Parker to Mr. Layton. 
 
 August 9, 1919. 
 Subject : Settlement of claim of Great Britain against the United States War 
 
 Department for artillery and ammunition. 
 Mr. W. T. Layton. 
 
 Ministry of Munitions, London, England. 
 
 My Dear Mr. Layton : In connection with the execution of the contract dated 
 August 9th, signed by Mr. W^atson representing Great Britain, and by Colonel 
 Bricker representing the War Department of the United States, evidencing the 
 full and complete settlement of all claims of Great Britain against the War 
 Department of the United States, involving undertakings on the part of Great 
 Britain to furnish to the United States War Department artillery and ammu- 
 nition, it is understood : 
 
 1. This contract as executed evidences a full, complete, unqualified, and 
 unconditional settlement of the matters therein dealt with. 
 
 2. It now develops, however, that Great Britain may not be able to furnish 
 out of stock all of the spare parts called for by the contract for some of the 
 8-inch howitzers, not exceeding 61 in number, and Great Britain contends that, 
 as the schedule of units to be delivered by Great Britain to the United States 
 was changed at the request of, and for the benefit of the United States, Great 
 Britain should not now be required to incur additional expense to manufacture 
 these spare parts for the benefit of the United States; and you suggest that 
 if the cost to Great Britain of producing the spare parts in question should 
 exceed 50,(X)0 pounds, such excess cost should be equally divided between Great 
 Britain and the United States. 
 
 3. In behalf of the United States I decline to commit the United States to 
 pay any part of this possible ex<?ess cost, but agree that when the facts are 
 
136 UNITED STATES LIQUIDATION COMMISSION. 
 
 fully developed, and you are in a position to advise to what extent, if at all, 
 it is necessary for Great Britain to manufacture additional spare parts in 
 order to comply with the contract, your proposition will then be further exam- 
 ined and considered by the representatives of the United States, without com- 
 mitment, however, to modify the contract in any particular. 
 
 4. Without committing the United States to the recognition thereof, it is 
 also understood that Great Britain is not foreclosed by this contract to pre- 
 sent her claim, if any she has, for interest or for excess value, if any, of ma- 
 terial obtained for the replacement of British material used in the manufac- 
 ture of artillery and ammunition described in said contract. 
 Yours very sincerely, 
 
 (Sgd.) Edwin B. Parker. Chairman. 
 
 Mr. Lay ton acknowledged the receipt of the above letter on August 13, 1919. 
 
 APPENDIX XIX. 
 
 Atjstbalian Wool Settlement. 
 (Par. 6, Cuthell-Inverforth agreement of May 10, 1919.) 
 
 The United States agrees to pay for the wool purchased from Great Britain 
 under the contract of October 1, 1917, on the basis of the civil issue price, less 
 two and one-half pence (2id.), in accordance with the bills already rendered, 
 covering approximately 247,000 bales. The United States also agrees to pay 
 the bills rendered by Great Britain for storage and insurance in Australia and 
 for interest on delayed payments under this contract, amounting approximately 
 to $850,000, and the United States agrees to waive all claims to a military 
 rebate on the entire 247,000 bales or any portion thereof. 
 
 The United States Government agrees to pay for the 115,000 bales already 
 shipped under contract of November 7, 1918, on the basis of the civil issue price, 
 less two and one-half pence (2id.), in accordance with the bills already ren- 
 dered, and agrees to pay the one penny per pound premium- for selection, as 
 set forth in the contract, waiving any question as to whether this selection was 
 obtained. There shall be no claim for interest or storage made against the 
 United States covering any of the wool undelivered under this contract by 
 Great Britain. 
 
 Great Britain agrees to cancel without cost to the United States all obligations 
 on its part to take delivery of the undelivered portion of the wool covered by 
 said contract of November 7, 1918, the total of which amounts approximately 
 to 210,000 bales. The contract with regard to such 210.000 bales of wool is 
 hereby agreed to be null and void. 
 
 APPENDIX XX. 
 
 Chateaueoxjx Tank Plant Settlement (August 8, 1919). 
 
 Agreement between the Government of His Britannic Majesty and the Govern- 
 ment of the United States of America with respect to the Chateauroux tank 
 project. 
 
UNITED STATES LIQUIDATION COMMISSION. 137 
 
 DEFINITIONS. 
 
 The term " Great Britain " as herein used means tlie Government of His 
 Britannic Majesty. The term " United States " as herein used means the 
 Government of the United States of America. The term " Chateauroux plant " 
 as herein used shall be taken to mean the projected work gf construction to be 
 undertaken in France pursuant to the contract between the United States and 
 Great Britain, such contract being dated January 22, 1918, a copy of the same 
 being hereto attached, marked Exhibit " A," and such term shall be deemed to 
 include all matters and acts to be done or performed by either Government 
 under such contract, other than the manufacture of components for tanks pTu-~ 
 vided for by subdivision 2 of paragraph 1 of the said contract, and the replace- 
 ment of steel as provided for by paragraph 6 of said contract. 
 
 RECITALS. 
 
 By reason of the armistice the necessity for carrying out the contract between 
 the parties dated January 22, 1918, Exhibit " A " having terminated and the 
 work of erecting and equipping Chateauroux plant having, by mutual agreement, 
 been discontinued, and there existing against the French Republic (hereinafter 
 called France) an equitable claim on account of the allotment to it of 750 of 
 the tanks allotted to Great Britain and 150 of the tanks allotted to the United 
 States under said contract, and France having tentatively agreed to purchase 
 from Great Britain and the United States the Chateauroux plant and to pay 
 therefor and in consideration of the aforesaid equitable claim the sum of twenty 
 million francs, and the parties hereto desiring to adjust and settle their re- 
 spective interests in said consideration and to liquidate, adjust, and settle the 
 matters covered by said contract of January 22, 1918, agree as follows : 
 
 AGREEMENT. 
 
 Article I. The expenditures of the parties incurred in carrying out said 
 contract of January 22nd, 1918, other than these contracted for pursuant to sub- 
 division 2, paragraph 1 thereof, shall be divided equally between the parties. 
 
 Article II. The work of liquidation, including the sale of property and the 
 settlement of all claims of contractors or third parties not already concluded, 
 shall be conducted by Great Britain. To the end that the liquidation may 
 be carried out to the best advantage, further expenditures may, if necessary, 
 be authorized by Great Britain, materials may be accepted, indemnity under 
 existing contracts and subcontracts paid, land purchased, and other acts deemed 
 essential to the best interests of the respective Governments and the proper 
 liquidation and preservation of the assets may be done and performed. 
 
 Article III. An account shall be taken every six months of all moneys paid 
 out and expended by the respective Governments in pursuance of the contract, 
 including settlements and indemnities paid in contemplation of the abandonment 
 of the project, and each Government shall pay to the other whatever balance 
 may be due from it as shown by such account; provided, however, that ex- 
 penditures made by either Government pursuant to the provisions of sub- 
 division 2 of paragraph 1 of the contract shall not be included. It is further 
 agreed that expenditures made by either Government pursuant to the provi- 
 sions of subdivision 2 of paragraph 1 of the contracts are declared equal and 
 are set off, the one against the other. Each Government shall retain title to 
 all material manufactured by it pursuant to the provisions of subdivision 2 
 
138 UNITED STATES LIQUIDATIOIST COMMISSION. 
 
 of paragraph 1 of said contract, niid neither Government shall make any claim 
 for reimbursement on account of expenditures made by it pursuant to the 
 provisions of subdivisions 2 of paragraph 1, nor are such expenditures to be in 
 any manner taken into account in settling the obligations of the parties pur- 
 suant to this agreement. 
 
 Article IV. The commission created by the agreement of January 22nd, 
 1918, consisting of Lieutenant Colonel A. G. Stern, Q. M. C, and Major J. A. 
 Drain, U. S. R., is hereby dissolved. 
 
 Aeticle V. The obligations devolving upon the United States by virtue of 
 paragraph 6 of the contract of January 22, 1918, are hereby discharged, and 
 the rights created thereby in favor of Great Britain are waived and relin- 
 quished by the Government of Great Britain. 
 
 Article VI. The factory built pursuant to said contract of January 22, 1918, 
 shall be sold to France pursuant to the agreement heretofore tentatively agreed 
 upon whereby France is to pay as the purchase price thereof and in considera- 
 tion of the equitable claim heretofore referred to the sum of twenty million 
 francs, and said sum shall be divided between the parties hereto in the pro- 
 portion of seventy per centum thereof to Great Britain and thirty per centum 
 thereof to the United States. 
 
 In witness whereof the undersigned have subscribed these presents on behalf 
 of their respective Governments as of the 8th day of August, nineteen hundred 
 and nineteen. 
 
 (Signed) A. Watson, 
 
 Representative of the Minister of Supplies of His Britannic Majesty. 
 
 Edwin B. Parker, 
 Chairman of the United States Liquidation Commission, 
 
 War Department of the United States Government. 
 
 APPENDIX XXI. 
 
 (1) Final Contract of Settlement of the Chateauroux Tank Project 
 
 (Oct. 4, 1919). 
 
 Agreement between His Britannic Majesty's Government and the United 
 States of America in final settlement of the Chateauroux tank project. 
 
 This agreement is supplemental to the agreement dated August 8, 1919, 
 signed by A. Watson on behalf of His Britannic Majesty's Government and 
 Edwin B. Parker on behalf of the United States of America, and supersedes 
 the Si^me in so far as anything herein contained may be inconsistent therewith. 
 
 In consideration of the mutual agreements herein contained, it is agreed as 
 follows : 
 
 Article I. Promptly upon receipt of the twenty million francs (frs. 20,000,- 
 000) mentioned in Article VI of said agreement of August 8, 1910, above de- 
 scribed. Great Britain or the Anglo-American Commission, as the case may be, 
 shall pay six million francs (frs. 6,000,000) thereof to the United States. 
 Against receipt of said six million francs (frs. 6,000,000) the United States 
 shall pay the ministry of munitions of His Britannic Majesty's Government the 
 sum of fifty-four thousand and ninety -five pounds sterling (£54,095). Such 
 payment by the United States shall be full performance of Article I of said 
 agreement of August 8, 1919, and together with such payment by Great 
 Britain shall constitute a full and final settlement of the affairs of the Anglo- 
 American Commission and of the Chateauroux tank project and of all interest 
 
UNITED STATES LIQUIDATION" COMMISSION. 139 
 
 and liability of every nature of the United States in respect thereto, except as 
 to the item " hidden loss on steel " hereinafter mentioned. 
 
 Article II. It is agreed that the statement designated " Schedule I " hereto 
 attached and made a part hereof, together with all items and amounts therein 
 contained except said item " hidden loss on steel," shall be considered a final 
 and conclusive statement of the affairs of the Anglo-American Commission. 
 
 Article III. Neither Government shall present against the other any further 
 claim in respect to the above described tank project except " hidden loss on 
 steel " as hereafter provided. In the event that upon liquidation, by the Anglo- 
 American Commission, or by Great Britain, of any further assets which accrue 
 to Great Britain, a sum is realized in excess of any estimate contained in said_ 
 Schedule I, such excess shall be retained by Great Britain. All liabilities of 
 said Anglo-American Commission, or of Great Britain, in respect to said tank 
 project, whether as set forth in Schedule I, or in excess of, or apart from, 
 any liability therein stated, shall be borne by Great Britain without any re- 
 course whatever against the United States. The United States shall retain 
 without accountability to Great Britain any sum hereafter realized by it upon 
 any assets or claim within its control, and shall not present any further claim 
 against the Anglo-American Commission. 
 
 Article IV. Great Britain has presented a claim against the Anglo-American 
 Commission covering " hidden loss on steel," which is referred to in said 
 Schedule I hereof. It is agreed that this item shall be omitted from the final 
 settlement provided in this agreement and shall be included in the claim which 
 Great Britain is making against the United States for " excess costs " of steel, 
 and shall be settled on the same basis as said excess costs claim, excepting that 
 Great Britain shall be entitled to receive from the United States only fifty per 
 cent (50%) of the amount, if any, of "hidden loss on steel" as it may be 
 determined in respect to the steel which has been supplied by Great Britain to 
 the Anglo-American Commission. The United States does not, either directly 
 or inferentially, admit by the execution of this agreement any liability in 
 respect to said item " hidden loss on steel " as contained in the claim presented 
 by Great Britain. 
 
 Article V. This agreement shall be void and of no effect, and said agreement 
 of August 8, 1919, above referred to, shall remain in full force and effect, in the 
 event that the twenty million francs (frs. 20,000,000) mentioned in Article VI 
 of said agreement of August 8, 1919, and referred to in Article I hereof, is not 
 paid as in said Article VI provided. 
 
 In witness whereof this agreement has been executed in four parts, each 
 having the full force and effect of the original, by His Britannic Majesty's Gov- 
 ernment acting through F. W. Phillips, on behalf of the ministry of munitions, 
 and by the United States of America, acting through the Liquidation Com- 
 mission — War Department, Edwin B. Parker, chairman, this fourth day of 
 October, 1919. 
 
 His Britannic Majesty's Government, 
 By F. W. Phillips, 
 
 On Behalf of the Ministry of Munitions. 
 United States of America, 
 By Edwin B. Parker, 
 
 Chairman of the United States 
 Liquidation Commission — War Department. 
 
140 
 
 UNITED STATES LIQUIDATION COMMISSION. 
 
 Schedule I. — Anglo-American Commission {UmTcs), cost of factory and general 
 
 expenses. 
 
 PAYMENTS. JULY 31, 1919. 
 
 Cash payments to date : Francs. 
 
 Factory construction 15, 611, 584. 04 
 
 Factory operation, etc 2, 690, 831. 02 
 
 General administration 809,807.35 
 
 Liquidation expenses ^ 201, 726. 00 
 
 Cancellation of orders 8, 072. 80 Francs. 
 
 19, 822, 021. 21 
 
 Estimated further cash payments: 
 To contractors — 
 
 Balance of commission and pending ' 
 claims in England, say £20,000, @ 32 
 
 to 1 L 640, 000. 00 
 
 Sundries — 
 
 Balance payable for material supplied 
 through Great Britain (M. of M.) and 
 cancellation of orders, less credits, say 
 
 £4,000, @ 32 to 1 128, 000. 00 
 
 Iviquidation expenses, London office, say 
 
 £1,000, @ 32 to 1 32, 000. 00 
 
 Miscellaneous bills and claims in France, 
 
 say 350, 000. 00 
 
 510,000.00 
 
 Due to British ministry of munitions: 
 Hidden loss on steel.* 
 
 Freight on construction material £48,094 
 
 Interest on advances calculated to May 31st, 
 1919 25, 190 
 
 73, 284 
 @32to 
 Due to U. S. A. : 
 
 Francs. 
 
 Power plant, Chateauroux 686,757.26 
 
 Track, Neuvy-Pailloux 593, 296. 96 
 
 Sundries supplied to A. A. C 166, 928. 84 
 
 1, 446, 983. 06 
 Less sundries supplied by A. A. C 111, 967. 37 
 
 41 
 
 345, 088. 00 
 
 1, 335, 015. 69 
 
 24, 152, 124. 90 
 
 1 Not included in this statement, as the United States does not admit it as claimed. 
 This item is to be taken up in the British " excess cost " claim, as provided in the agiee- 
 ment covering this settlement and Is to be borne by the United States and Great Britain 
 in equal shares, to the amount, if any, allowed upon the determination of the " excess 
 costs " claim. 
 
imiTED STATES LIQUIDATION" COMMISSION. 141 
 
 V. S. LIQUIDATION. 
 
 Francs. 
 
 Half loss as above 11,781,024.93 
 
 Less — 
 
 Payment to Great Britain £300,000 on May Francs. 
 
 12, 1919, @ 29.05 8, 715, 000. 00 
 
 Material supplied by U. S. A 1, 335, 015. 69 
 
 10, 050, 015. 69 
 
 Balance due to Great Britain 1, 731, 009. 24 
 
 Balance due to Great Britain in sterling, @ 32 to 1 £54, 095r0a — - 
 
 RECEIPTS, JULY 31, 1919. 
 
 Cash receipts to date: 
 
 Interest from banks 9, 293. 40 
 
 Realization of assets — 180, 281. 65 
 
 189, 575. 05 
 
 Estimated further cash receipts: 
 
 Interest from banks, say 500.00 
 
 Realization of assets (sale of miscellaneous 
 material in C. S. D. stores in England), 
 say £12,500, @ 32 to 1 400, 000. 00 
 
 400, 500. 00 
 
 Approximate net cost : 
 
 U. S. A., 50% equals 11, 781, 024. 93 
 
 British, 50% equals 11,781,024.92 
 
 23, 562, 049. 85 
 
 24,152,124.90 
 
 GREAT BRITAIN LIQUIDATION. 
 
 Half loss as above 11,781,024.92 
 
 Payments to July 31st, 1919 (less receipts) 19,132,446.16 
 
 Estimated further payments (less receipts) 749, 500. 00 
 
 Freight and interest 2,345,088.00 
 
 22, 227, 034. 16 
 Less £3CK),000 from U. S. A 8, 715, 000. 00 
 
 13, 512, 034. 16 
 
 Balance due from U. S. A 1, 731, 009. 24 
 
 Certified correct : 
 
 P. W. Phillips, FirMncial Liquidator. 
 
 ^2) Tripartite Memorandum in Settlement of the Chateauroux Tank; 
 
 Project (Oct. 9, 1919). 
 
 Ministere De La Reconstitution Industrielle : 
 
 At the request of the Inter-Allied Committee at Versailles the Governments 
 of Great Britain and of the United States of America undertook, in 1918, the 
 manufacture of Anglo-American tanks known under the name of " Liberty," the 
 component parts of which were furnished by the said Governments and were to 
 
142 UNITED STATES LIQUIDATION COMMISSION. 
 
 be assembled in France in a plant constructed by these Governments at Neuvy- 
 Pailloiix, near Chateauroux. 
 
 Subsequent to negotiations, which arose after the armistice between the 
 Ministere de la Reconstitution Industrielle, Monsieur Loucheur, representing 
 France; Mr. W. Layton, delegate of the British Minister of Munitions, repre- 
 senting the British Government; and Mr. Edwin B. Parker, chairman of the 
 Liquidation Commission, representing the Government of the United States of 
 America, the liquidation of the expenses in connection with the manufacture 
 of " Liberty " tanks was settled as follows, subject to the subsequent ratification 
 by the French Chambers of the credit demanded with this in view : 
 
 On the 170 millions, which represent the total of the expenses incurred by 
 the Governments of Great Britain and of the United Sates, for the manufacture 
 of these tanks, the French Government agrees to the sum of 20 millions. 
 Furthermore, it is stipulated that the French Government will relieve the Gov- 
 ernments of Great Britain and the United States of all payments and obliga- 
 tions resulting from the purchase, occupation, and use of the land connected with 
 the construction of the Neuvy-Pailloux plant. 
 
 On the other hand, the Governments of Great Britain and of the United 
 States give to the French Government in full ownership the buildings and rail- 
 way tracks built at Neuvy-Pailloux, as well as all the material of all kinds 
 which are in the plant and the surrounding land. 
 
 The credits necessary to the execution of this agreement having been granted 
 by the finance law of September 30th, 1919, the above agreement becomes 
 definite. 
 
 The Sous Secretaire d'Etat de I'Administration de la Guerre will decide on 
 the way in which the sum of 20 millions, mentioned above, will be paid. 
 
 Paris, October 9, 1919. 
 
 ( Signed ) Loucheuk. Labrami. 
 
 Morel. C. C. Barbie. 
 
 Edwin B. Parker. F. W. Phillips. 
 
 APPENDIX XXIL 
 
 Extract from Cuthell-Invebfobth Agreement of May 10, 1919. 
 
 3. liberty motors and proper proportion of sets of spare parts. 
 
 The Bureau of Aircraft Production of the War Department of the United 
 States of America shall deliver a number of Liberty motors which, together 
 with the Liberty motors delivered to date, shall equal 2,252. Such delivery shall 
 be at the option of the United States, either at seaport in the United States, or 
 from stocks of the American Expeditionary Forces in France. It shall render 
 a bill for the sum of $16,589,718.90. Against this bill there shall be credited 
 cash payments made to date of $2,625,000, leaving a balance due of $13,964,- 
 718.90. Such bill shall be accompanied by a short statement to the effect that 
 for the purpose of the settlement of this bill the total cost (excluding strictly 
 military charges) of materials, plant, tools, and all other elements, is fixed 
 at $153,515,619. The United States has made an allowance of $2,700,000 on 
 account of labor expenditures subsequent to the armistice. The balance charge- 
 able to Liberty motor construction for the purposes of fixing the costs of 
 Liberty motors to Great Britain is fixed at $150,815,619. It is also agreed 
 that the total production of Liberty motors for the pun)Ose of the settlement 
 between the parties hereto is 20,478. Great Britain has purchased and will take 
 
UNITED STATES LIQUIDATION COMMISSION. 143 
 
 a number of motors equal to eleven per cent (11%) of the total production, or 
 2,252. Great Britain shall also pay eleven per cent (11%) of all cost of such 
 production, or $16,589,718.90. The United States shall, with each motor and 
 with each group of motors, ship the same proportionate number of sets of 
 spares which it shipped under the contract for 980 motors, dated July 11, 1918. 
 
 APPENDIX XXIII. 
 
 Agreement in Settlement of the British Interest Claim 
 
 (Oct. 20, 1919). 
 
 Agreement between His Britannic Majesty's Government and the United 
 States of America with respect to interest charges. 
 
 definitions. 
 
 The term " Great Britain " as herein used means His Britannic Majesty's 
 Government. The term *' United States " as herein used means the Govern- 
 ment of the United States of America. The term " War " as herein used 
 means the war between the United States and the nations associated with it 
 on the one part and the Imperial German Government and its allies on the 
 other part. 
 
 recitals. 
 
 In connection with the prosecution of the war and matters arising there- 
 from, Great Britain has invested or otherwise disbursed large sums of money 
 which are properly chargeable against the United States. Great Britain has 
 felt that some reimbursement to it should be made by the United States be- 
 cause of the considerable periods of time elapsing between the dates of such 
 investments or disbursements and the times of reimbursement thereof to Great 
 Britain by the- United States, and has put forward a claim for interest on 
 all proper bills rendered by it against the United States. The United States 
 has made similar investments and disbursements which are properly charge- 
 able against Great Britain and has presented a claim for interest on bills 
 rendered by it similar to any interest on bills rendered by Great Britain. 
 
 The parties hereto desire to settle and adjust all claims between the War 
 Department of the United States and Great Britain, or their respective agencies 
 or representatives, for interest, or other compensation on account of delay, 
 or lapse of time, in the rendering or in the payment of bills, statements or 
 invoices, or delay, or lapse of time, in the reimbursement of capital expendi- 
 tures, connected with the prosecution of the war. 
 
 Now, therefore, it is agreed: 
 
 Article I. For the purposes of this agreement and the settlement of the 
 claims intended to be settled and adjusted hereby, and for no other purpose, 
 the statement designated " Schedule I," hereto attached and made a part 
 hereof, together with all items and amounts therein contained, shall be a final 
 and conclusive statement of each and every matter referred to therein. 
 
 Article II. The United States shall pay to Great Britain the sum of seven 
 hundred and ninety-seven thousand eight hundred and fifty-four pounds eleven 
 shillings and twopence (£797,854 lis. 2d.) set forth in said Schedule I, being the 
 interest computed at the rate of five per cent (5%) per annum for a period of 
 3| months upon the net balance between the aggregate amounts, respectively, of 
 all bills of every nature rendered in the United States, Great Britain, France, or 
 elsewhere, by each of said Governments against the other, prior to August 1, 
 
144 UNITED STATES LIQUIDATION COMMISSION. 
 
 1919, in respect to transactions arising out of, connected witli, or incident 
 to tlie prosecution of the war, except (1) tlie transfer to the United States 
 of certain property acquired by Great Britain from the Westinghouse Electric 
 and Manufacturing Company ; (2) matters (particularly ocean transportation 
 of cargo and troops) within the jurisdiction of the ministry of shipping of 
 Great Britain, other than such matters as may be covered by an item or 
 items of said Schedule I; (3) matters more particularly within the purview 
 of other departments of the United States other than the War Department, 
 including all loans from the United States to Great Britain; and (4) obli- 
 gations between the United States and the Dominion of Canada. This agree- 
 ment shall not be interpreted to prejudice or affect in any way whatsoever 
 any of the matters referred to in the four above-mentioned exceptions, either 
 as to a settlement of any of them, or of interest in respect to any of them, 
 or otherwise. 
 
 Article III. Great Britain does hereby release and discharge the United 
 States — and the United States does hereby release and discharge Great Britain — 
 from all obligations, commitments, claims, or demands whatsoever which Great 
 Britain has against the United States or the United States has against Great 
 Britain, as the case may be, or which either may hereafter have, in respect to 
 interest upon bills, statements, or invoices, compensation for delays in rendering 
 or in paying the same, reimbursement of costs incurred by reason of such delays, 
 or compensation for the use of money or credits or for capital expenditures ; in 
 any wise pertaining to transactions arising out of, connected with, or incident to 
 the prosecution of the war, and covered by bills rendered prior to August 1, 
 1919, irrespective of whether stated or referred to in said Schedule I ; except 
 the matters designated (1), (2), (3), and (4) herein above in Article II hereof 
 referred to. 
 
 Article IV. On all proper bills referred to in said Schedule I which are still 
 outstanding on October 1, 1919, interest shall accrue at the rate of five per cent 
 (5%) per annum from October 1, 1919. In respect to all proper bills connected 
 with the prosecution of the war, other than those pertaining to the above-men- 
 tioned matters, designated (1), (2), (3), and (4) in Article II hereof, rendered 
 on or after August 1, 1919, each Government shall compute the amount thereof 
 outstanding at the end of each calendar month, and all such bills then out- 
 standing which were rendered prior to the first of said calendar month, except 
 bills concerning which some other arrangement has been made in respect to 
 interest or in lieu thereof, shall bear interest from the first day of the succeed- 
 ing calendar month until payment of such bill, at the rate of five per cent (5%) 
 per annum. Accrued iijterest shall not be added to the amount of any bill so 
 as to result in the compounding of interest in any manner. The payment of 
 interest as herein provided shall be full satisfaction of all claims and demands 
 whatsoever for interest upon bills, statements, or invoices, or compensation 
 for delays in rendering or in paying the same, or reimbursement of costs in- 
 curred by reason of such delays, or compensation for the use of money or credits 
 or for capital expenditures, in any wise pertaining to the transaction for which 
 the bills, upon which such interest has been paid, shall have been rendered. 
 No bill shall be considered as a proper bill hereunder until rendered in finally 
 correct form. 
 
 In witness whereof this agreement has been executed in four parts, each 
 having the full force and effect of an original, by His Britannic Majesty's 
 Government, acting through A. Watson, representative of the minister of 
 munitions, and by the United States of America, acting through the Liquidation 
 
UNITED STATES LIQUIDATION COMMISSION. 
 
 145 
 
 Commission, War Department, Edwin B. Parker, chairman, this twentieth day 
 of October, 1919. 
 Witness : 
 
 Rurus J. Trimble. 
 
 His Beitannic Majesty's Government, 
 By A. Watson, 
 
 Representative of the Minister of Munitions. 
 Witness : 
 
 RuFUS J. Trimble. 
 
 United States of America, 
 By Edwin B. Parker, 
 Chairman of the United States Liquidation Commission — War Department. ~' 
 
 Schedule I. — Interest statement — Summary of Mils rendered prior to 
 
 July 31, 1919. 
 
 Department account or claim. 
 
 Amount. 
 
 Pounds. 
 
 Dollars. 
 
 Francs. 
 
 Great Britain: 
 
 Departmental (bills rendered in Great Britain)— 
 
 17,943,203.16.4 
 
 674.021.16.5 
 
 1,568,405.15.9 
 
 11,822.2.7 
 
 13,565,761.3.11 
 
 12,731,260.2.0 
 
 326,398.3.3 
 
 78,871.17.5 
 
 58,341.5.0 
 
 153, 585. 17. 10 
 
 262,066.19.5 
 
 29,908,931.30 
 
 
 
 
 Oldham Aircraft Ass. plant 
 
 
 300 tons pig lead 
 
 
 War office, " special " 
 
 
 War office, "miscel." 
 
 
 Post office 
 
 
 Office of works 
 
 
 Air ministry 
 
 
 Record of trade 
 
 
 
 
 Total departmental 
 
 47, 373, 758. 19. 11 
 
 9,000,000.0.0 
 
 213, 426. 0. 
 
 
 Bills rendered in France . . . . 
 
 
 Bills rendered in U. S. A 
 
 
 
 
 Total 
 
 56,587,185.8.11 
 1,500,000.0.0 
 
 29.908,931.30 
 
 
 
 
 
 
 Net total, British 
 
 55,087,185.8.11 
 
 29,908.931.30 
 
 
 
 
 United States: 
 
 Bills rendered in U. S. A 
 
 
 45,494,345.36 
 128,497.09 
 
 
 BiUs rendered in France 
 
 Bills rendered in Great Britain 
 
 3,846.10.0 
 173, 154. 17. 10 
 
 3,162,530.18 
 
 Net total, American 
 
 
 177,001.7.10 
 
 45,622,840.45 
 
 3,182,530.18 
 
 Balances: 
 
 British 
 
 54,910,184.1.1 
 
 15,713,909.15 
 £3,741,406.18.10 
 
 
 u. S 
 
 3,182,530.18 
 £106,084.6.10 
 
 ($4.20andfrs. 30to£l) 
 
 3,847,491.5.8 
 
 
 
 Net balance in favor of Great Britain 
 
 51,062,692.15.5 
 797,854.11.2 
 
 
 Interest on net balance for 3f months @ 5% . - . 
 
 
 
 
 APPENDIX XXIV. 
 
 Liquidation of the Nitrate Pool 
 (Sept. 15, 1919). 
 
 Agreement between His Britannic Majesty's Government and the United 
 States of America with respect to the Nitrate Pool. 
 183176—20 10 
 
146 UNITED STATES LIQUIDATION COMMISSION. 
 
 DEFINITIONS. 
 
 The term " Great Britain " as herein used means His Britannic Majesty's 
 Government. The term " United States " as herein used means the Govern- 
 ment of the United States of America. The term " Nitrate " as herein used 
 means refined nitrate of soda. The tei-m " Pool " as herein used shall be 
 taken to mean the arrangement between Great Britain and the United States 
 entered into in the latter part of 1918, pursuant to which the stocks of nitrate 
 of the two Governments, to the extent that they constituted a surplus in excess 
 of their respective internal requirements, were considered as belonging to a 
 common pool, and pursuant to which each Government's transactions there- 
 after, in regard to such surplus stocks, were considered to be on behalf of such 
 pool. A ton in this agreement means a long ton consisting of 2,240 pounds. A 
 quintal means the ordinary Chilean quintal of which there are twenty-two to- 
 the ton of 2,240 pounds. 
 
 BECITALS. 
 
 Various misunderstandings have arisen as to the nature, force, and effect 
 of the pool and each of the above-named Governments has put forward certain 
 claims in respect thereto. There is now no useful function for the pool to con- 
 tinue to perform and the parties hereto desire to settle and adjust all the^ 
 aforesaid claims, to equitably apportion between the two Governments the re- 
 maining nitrate stocks of the pool, and to finally liquidate and settle the pool, 
 its obligations, profits or losses, and all matters pertaining thereto. 
 
 AGREEMENT. 
 
 Now therefore, in consideration of the mutual agreements herein contained 
 it is agreed as follows : 
 
 Abticle I. The contributions of nitrate by said Governments to the pool are 
 fixed at the following approximate quantities: 
 
 Tons. 
 
 His Britannic Majesty's Government 436,300 
 
 United States of America 156, 776 
 
 Total pool contributions 593,076 
 
 The unsold balance of nitrate remaining in the pool at the date hereof, is ap- 
 proximately 225,155 tons as m'bre fully set forth in Schedule I hereto attached 
 and made a part hereof. For the purposes of the liquidation of the pool the- 
 foregoing figures and schedule may be changed by mutual agreement to con- 
 form to the facts, as they subsequently may be determined to be, without 
 otherwise affecting the terms of this agreement. 
 
 Article II. The above-described unsold balance shall be divided between the 
 two Governments in shares in the proportions that their respective tonnage 
 contributions to the pool are to the total pool contributions. The nitrate so ap- 
 portioned to the United States shall be made up of the nitrate stocks in the 
 United States, and in Canada respectively, together with such American pur- 
 chased stocks in Chile as shall be mutually agreed upon in an amount suf- 
 ficient to complete its said share. The nitrate so apportioned to Great Britain 
 shall be made up of the nitrate stocks in the United Kingdom, and the British 
 purchased nitrate stocks in Chile, together with the balance of the American 
 purchased nitrate stocks in Chile. 
 
UNITED STATES LIQUIDATION COMMISSION. 147 
 
 Article III. The United States shall pay to the pool, by means of a debit 
 to it in the settlement of the pool's accounts, eight shillings and sixpence 
 (8/6d.) per quintal for the stocks now in the United States and Canada, plus 
 an ocean freight charge of $17.50 per ton and a sum equal to the commercial 
 marine insurance charges for the shipment of such nitrate from Chile to its 
 present location at rates existing on September 15, 1919. Great Britain 
 shall pay to the pool, by means of a similar debit, eight shillings and sixpence 
 (8/6d.) per quintal f. a. s. for the stocks located in Chile; and eight shillings 
 and sixpence (8/6d.) per quintal for the stocks now lying in the United King- 
 dom, plus an ocean fi-eight charge of 140 shillings per ton and a similar marine 
 Insurance charge. Some portions of the nitrate stocks may be " ordinary "~ 
 instead of " retined " and if so shall be taken by the United States and Great 
 Britain as part of their respective shares in proportions to be agreed upon 
 at a reduction in the price above mentioned of 4 pence per quintal, and such 
 fact shall not otherwise affect the terms of this agreement. 
 
 Article IV. Upon the execution of this agreement title to the stocks now 
 lying in the United Kingdom, United States, and Canada, respectively, shall 
 pass to the respective Governments entitled thereto, as herein provided, as of 
 September 15, 1919, and title to the stocks in Chile shall so pass when the 
 allocation of the various parcels has been agreed upon as provided in Article 
 II hereof. Delivery of the nitrate shall be taken in each case where it lies 
 save that the nitrate in Chile shall be put free alongside at the expense of 
 the pool. Each of said Governments may dispose of any or all of its share 
 of stocks immediately upon the execution of this agreement and may advance 
 any sums that may be necessary to accomplish delivery thereof. Such ad- 
 vances shall be a charge against the pool in so far as they are made to meet 
 a pool liability herein provided. 
 
 Article V. Great Britain shall pay or reimburse the United States the costs 
 of breaking the stocks in Canada sufficient for bagging and the costs of re- 
 bagging the same where necessary (other than the cost of the bags). The 
 cost of the bags so used shall be borne by the United States. Neither the 
 costs of breaking and bagging nor the cost of the bags shall be a charge 
 aga..inst the pool. 
 
 Article VI. After the 15th of September, 1919, the nitrate shall be at the 
 risk and all charges save as provided in Article V hereof and such as may be 
 necessary to put the nitrate in a deliverable condition shall be for the account 
 of the Government which acquires the particular stock as herein provided. All 
 charges and costs which have been properly paid or incurred in connection 
 with the acquisition, custody, or disposal of the total stocks of the pool up to 
 and including the 15th day of September, 1919, shall be regarded as having 
 been paid or incurred for the account of the pool. Silch charges and costs 
 shall Include the purchase price of the pool nitrate, freight or other trans- 
 portation charges, handling, insurance, storage, other carrying charges, and 
 brokerage, in respect thereto, together with all other expense which has arisen 
 from the purchase, disposal, or custody, or transportation thereof, including any 
 administrative expenses and similar charges which are attributable solely to 
 the pool. All costs paid in dollars by the United States prior to November 
 11, 1918, in respect to nitrate turned over to the pool by it shall be converted 
 to a sterling basis at a rate of exchange of 4.76, subsequent payments of dol- 
 lars by the United States on behalf of the pool shall be credited to the United 
 States at the rate of exchange ruling at the date the particular payment shall 
 have been made. All advances by either Government on account of the pool 
 shall bear interest at the rate of five i)er cent (5%) per annum. In respect 
 to advances made prior to the 11th day of November, 1918, interest shall accrue 
 
148 UNITED STATES LIQUIDATION COMMISSION. 
 
 from that date, and in respect to subsequent advances, from the date of the 
 advance, and run to and including the 15th day of September, 1919. Such 
 interest shall be included as a cost on account of the pool. The proceeds of 
 all sales made on account of the pool shall be credited to it and interest at 
 said rate shall be credited thereon from the date of sale to the 15th day of 
 September, 1919. Any advances made by either Government after the 15th 
 day of September, 1919, in the payment of any obligation which arose on ac- 
 count of the pool prior to said date, shall bear interest at the aforesaid rate 
 from the date of such advance until the reimbursement thereof by the pool. 
 Article VII. The profits or losses of the pool, as the case may be, shall be 
 determined as expeditiously as possible as of the 15th day of September, 1919, 
 including in such determination the transactions for the liquidation of the Pool 
 herein provided. Such profits or losses shall be divided between, or borne by, 
 Great Britain and the United States in the proportions provided in Article II 
 hereof for the apportionment of the nitrate stocks of the pool. 
 
 Article VIII. The United States shall not dispose of any part of its share of 
 the nitrate stocks of the pool in the United Kingdom or in the Dominions of 
 the British Empire, except that it may sell in Canada an amount equal to its 
 Canadian stocks, and Great Britain shall not dispose of any part of its share in 
 the United States or its possessions or territories. Each Government shall 
 secure a stipulation from the purchaser from it that such purchaser and pur- 
 chasers in turn from it shall be bound by the same restrictions as the selling 
 Government. 
 
 Article IX. The general custom, of trade shall apply to the transactions 
 forming the subject of this agreement except where special provision is ex- 
 pressly made herein. 
 
 In witness whereof, this agreement has been executed in four parts, each 
 having the full force and effect of the original, by His Britannic Majesty's 
 Government, acting through the minister of munitions, and by the United 
 States of America, acting through the United States Liquidation Commission — 
 War Department, Edwin B. Parker, chairman, as of the 15th day of September, 
 A. D. 1919. 
 Witness : 
 
 RuFUS J. Trimble. 
 
 His Britannic Majesty's Government, 
 By Henry Howard Piggott, 
 For and on Behalf of the Minister of Munitions, Assistant Secretary. 
 Witness : 
 
 RuFus J. Trimble. 
 
 United States of America, 
 By Edwin B. Parker, 
 
 Chairman of the United States Liqui- 
 dation Commission — War Department. 
 
 (Copy.) 
 
 Ministry of Munitions of War, 
 Surplus Government Property Disposal Board, 
 
 Explosives and Chemicals Section, 
 Storey's Gate, Westminster, S. W. 1, 10th November, 1919. 
 . Dear Sir : I am sorry that it has not been possible for me to write you earlier 
 putting on record the arrangements that were made at our interview on 5th 
 November. 
 
UITITED STATES LIQUIDATION COMMISSION. 149 
 
 The contributions of nitrate set out in Article I of the agreement were modi- 
 tied by the addition of 328 tons to the British figure and 620 tons to the U. S. A. 
 figure ; the revised figures being as follows : 
 
 Tons. 
 
 His Britannic Majesty's Government 436, 628 
 
 U. S. A. Government 157,396 
 
 Total pool contributions 594, 024 
 
 The figures in Schedule I were further revised to read as follows : 
 Great Britain : Tons. 
 
 Stocks in Chile 2, 050 
 
 Stocks in U. K 58,468 .] 
 
 Stocks in Canada 16, 598 ; 
 
 77,116 
 
 America : 
 
 Stocks in Chile 120, 681 
 
 Stocks in America 28, 376 
 
 149, 057 
 
 226,173 
 A fresh calculation was made showing the proportions of unsold stocks to be 
 as follows : 
 
 His Britannic Majesty's Government: Tons. 
 
 Stocks in U. K 58, 468 
 
 British stocks in Chile 2, 050 
 
 U. S. A. stocks in Chile 105, 727 
 
 166, 245 
 
 U. S. A. Government: 
 
 Stocks in Chile 14, 954 
 
 Stocks in U. S. A 28, 376 
 
 Stocks in Canada 16, 598 
 
 59,928 
 
 It was understood that you were agreeing these figures by cablegram, and I 
 hope to receive your confirmation at a very early date. 
 Yours faithfully, 
 
 (Signed) H. S. Mingabd. 
 
 Schedule I. — Unsold balance remaining in pool at 15 Sept., 1919. 
 
 Great Britain: Tons. 
 
 Stocks in Chile 2, 050 
 
 Stocks in U. K 58, 468 
 
 Stocks in Canada 16, 200 
 
 76,718 
 
 America : 
 
 Stocks in Chile 120,222 
 
 Stocks in America : 28, 215 
 
 148, 437 
 
 225, 155 
 The above figures are approximate only. 
 
150 
 
 UNITED STATES LIQUIDATION- COMMISSION. 
 
 APPENDIX XXV. 
 
 Authorisations to 1*ay Claims. 
 
 Num- 
 ber of 
 claims. 
 
 Arising in— 
 
 Kind of money. 
 
 Amount 
 claimed by 
 claimant. 
 
 Amount 
 allowed by 
 Commission. 
 
 328 
 
 France 
 
 French francs. 
 
 76 949 049 35 
 
 S9 r«7 .f;9Q 9n 
 
 63 
 
 Switzerland 
 
 Swiss francs 
 
 3,'553;399.22 j 2; 034; 096! 60 
 391 252 40 286 602 40 
 
 4 
 
 Spain ..: 
 
 
 1 
 
 France . . . 
 
 Swedish kroner . 
 
 40 991 00 ^7' 1QQ on 
 
 1 
 
 England 
 
 American dollars 
 
 1,650.35 
 
 370,793/1/4 
 
 1' 650. 35 
 
 49 
 
 England 
 
 
 364,449/17/10 
 
 
 
 
 446 
 
 
 Note.— Poes not include claims of foreign Governments. 
 
 Claims Disallowed by Commission. 
 
 Num- 
 ber of 
 claims. 
 
 Arising in— 
 
 Kind of money. 
 
 Amount 
 claimed by 
 claimant. 
 
 47 
 
 France 
 
 French francs 
 
 3,583,698.63 
 90,000.64 
 19 374 71 
 
 3 
 
 Spain 
 
 Spanish pesetas. . . 
 
 1 
 
 Imgland 
 
 Swedish kroner. . 
 
 1 
 
 Switzerland 
 
 Swiss francs 
 
 109;076.76 
 952/0/0 
 
 1 
 
 England 
 
 English pounds 
 
 
 
 
 53 
 
 
 APPENDIX XXVI. 
 
 French-Am KKicAN Artillery Under Stettinius-Loucheur Arrangement. 
 
 (1) artillery components to be delivered to FRANCE BY THE UNITED STATES. 
 
 (a) 75-mm. material: 
 
 100 roughly macliined recuperator forcings monthly, September, 1918, 
 
 to June, 1919. 
 250 assembled carriages, without recuperators and without sights, prior 
 
 to December 31, 1918. 
 150 assembled carriages monthly, without recuperators and without 
 
 sights, January to June, 1919. 
 2,880 carriage limbers, 
 
 6,000 caissons, prior to December 81, 1918. 
 
 8,640 caisson 'limbers, 
 A total of 2,640 additional caissons from January to June, 1919. 
 
 ( b ) 155-mm. Schneider howitzer material : 
 
 76 finished recuperators during September, 1918. 
 
 810 finished recuperators between October 1 and December 31, 1918. 
 
 200 finished recuperators between January 1 and May 1, 1919. 
 
 622 finished howitzers during September, 1918. 
 
 210 finished howitzers between October 1 and December 31, 1918. 
 
 300 finished howitzers between January 1 and May 1, 1919. 
 
 386 finished limbers to December 31, 1918. 
 
 746 finished carriage limbers between January 1 and May 1, 1919. 
 
 3,396 caissons prior to December 31, 1918. 
 
UNITED STATES LIQUIDATION COMMISSION. 151 
 
 (c) 155-mm. G. P. F. material: 
 
 50 finished guns and carriages without recuperators, prior to December 
 
 31, 1918. 
 400 rouglily machined recuperator forgings prior to June 30, 1919, of 
 
 which 60 had been floated prior to September 12, 1918; subsequent 
 
 deliveries to be at rate of 40 per month. 
 300 carriage limbers prior to December 31, 1918. 
 
 (2) GUNS TO KE DELIVEIKED BY FRANCE TO THE UNITED STATES. 
 
 ill) 75-mm. guns complete with 1 limber and 1 caisson: 
 
 September 288 
 
 October, 
 
 November, per month 300 
 
 December, 
 
 From ,Iiinuary 1, 1919, to June 30, 1919, per month 350 
 
 (h) 155-mm. howitzers: 
 
 To January 1, 1919, per month 140 
 
 From January 1, 1919, per month 160 
 
 (c) 155-mm. guns: 
 
 October 40 
 
 November 40 
 
 December 45 
 
 From January 1, 1919, per month 45 
 
 (d) In addition the French to deliver all the materials and parts of materials 
 
 necessary for the maintenance of batteries in service, observing the 
 co-efficients for maintenance employed in the French Army. 
 
 APPENDIX XXVII. 
 
 (1) French Artillery and Ammunition Agreement 
 (Aug. 28, 1919). 
 
 Agreement between the Government of the United States and the Govern- 
 ment of France, concerning the final settlement of the supplying of artillery 
 and ammunition, undertaken by France on behalf of the United States up 
 to the date of the armistice of November 11th, 1918, and other matters. 
 
 Preamble. — At the signature of the armistice of November 11th, 1918, the 
 French Government had accepted orders for a large amount of ammunition and 
 artillery materiel to be delivered to the United States Government, which 
 were then in course of execution ; and certain negotiations had also been en- 
 tered into, relative to the furnishing oi certain additional artillery materiel 
 for which no final agreement had been reached and for ivhich the United States 
 Government had not yet placed formal orders. The United States Government, 
 on its part, had supplied to the French Government 550 155-mm. howitzers, 
 intended to be used in the composition of the materials to be transferred to 
 the United States. 
 
 The French Government had also agreed to machine for the United States 
 400 rough cradles for 1.55-mm. G. P. F. guns, of which 110 had been delivered 
 by the United States and 60 were in process of machining on November 
 11th, 1918. 
 
152 UNITED STATES LIQUIDATION COMMISSION. 
 
 A verbal agreement (confirmed by letters of December 7th, 1918, from Mr. 
 Loucheur, of December 7tli, 1918, from Mr. Stettinius, and of December 20th, 
 1918, and January 3rd, 1919, from Col. Mercier was reached between the 
 Ministre de I'Armament, representing the French Government, and Mr. 
 Stettinius, special representative of the United States Government, concern- 
 ing the final settlement of the orders for artillery materials and ammunition 
 undertaken by France on behalf of the United States and other matters ; and 
 this agreement is now drawn up in the final form, as follows : 
 
 Between the United States Government, represented by E. D. Bricker, 
 Colonel, Ordnance Department, United States, on behalf of the Chief of 
 Ordnance of the United States Army, duly appointed, and the French Govern- 
 ment, represented by M. le G^n^ral Maurin, Directeur de I'Artillerie, duly 
 appointed, is agreed as follows: 
 
 Art I. General provisions. — (a) All materials and accessories, ammunition or 
 ammunition components, delivered by the Government of France and accepted 
 by the American Armies or delivered by the United States Government and 
 accepted by the French Armies, up to November 11th, 1918, inclusive, shall 
 remain the property of the accepting Government and shall be paid for at the 
 prices previously agreed to for items of the same model belonging to the 
 same or previous orders. 
 
 (&) Save the exceptions provided for in the present covenant and excepting 
 all material delivered and accepted on or before November 11th, 1918 ; all orders 
 accepted by the French Government for the United States Ordnance Depart- 
 ment covering artillery mat6riels, ammunition, accessories, and spare parts, and 
 all orders for projectiles finished or unfinished, placed for or by the French 
 Government in America with the United States Ordnance Department up to 
 November 11th, 1918, inclusive, are hereby cancelled by mutual agreement. No 
 indemnity of any kind whatsoever shall be paid by the United States Govern- 
 ment or by the French Government for the cancellation of these orders. 
 
 (c) All ammunition and ammunition components of American make, not 
 specified in Art. I, par. (a) above, existing in the depots of French general 
 reserve storehouses (Entrepots de Reserve G6n6rale Francais) shall be removed 
 and put at the disposal of the United States. 
 
 Likewise all ammunition of French make now in the said storehouses, not 
 specified In Art. I, par. (a) above, shall be kept by the French Government. 
 
 ^(d) The United States Government has previously delivered to the French 
 Government 550 155-m/m howitzers finished with breech mechanism; 275 of 
 these guns shall be satisfactorily assembled to the carriages belonging to the 
 700 mat^rlels of this type specified In Art. ir, par. (b). In place of the same 
 number of similar howitzers of French manufacture. Their value (reckoned 
 at frs. 23,466 each, which Is the cost price of Identical material of French 
 make), I. e., a total of frs. 6,453,150, shall be deducted from the total price of 
 155-m/m howitzer mat6rlels transferred. 
 
 The other 275 howitzers remain the property of the United States. It is 
 stated by the French Government that one of these burst during the regulation 
 firing tests, because of weakness developed by these tests; a report will be 
 furnished by the French Government certifying to these facts. The remaining 
 274 howitzers shall be delivered to the Ordnance Department and shipped to 
 America at the expense of the United States Government. 
 
 (e) The United States Government has delivered to the French Government 
 110 155-m/m G. P. F. rough cradle forglngs, being part of an order for 400 
 rough forgings; 60 of these cradles, being at the present time in course of 
 machining, shall be entirely completed by France and delivered to the United 
 States. The settlement will be the subject of an agreement when the costs of 
 
UNITED STATES LIQUIDATION COMMISSION. 153 
 
 the service rendered shall have been determined ; the sum to be paid shall be 
 tlie actual cost price to the French Government. 
 
 The 50 rough forgings remaining shall be delivered to the Ordnance- Depart- 
 ment for return to the United States at the expense of the United States Govern- 
 ment. The 290 forgings not yet delivered shall not be shipped to France. 
 
 Art. II. Materiel to be supplied. — The French Government undertakes to 
 supply to the United States Government, which accepts and undertakes to pay 
 for the following materiel : 
 
 (a) 944 75-m/m gun materiels, model 1897, with limbers. 
 
 (&) 700 155-m/m howitzer materiels, model 1917, Schneider design, with 
 limbers. 
 
 (c) 198 155-m/m G. P. F. materiels, with limbers. 
 
 (d) Collection of additional parts as hereinafter specified. 
 
 Art. III. Composition of tJie materiel to he delivered. — The articles included 
 in the composition of the materiels and collections mentioned in Art. II are 
 enumerated in the tables number 1 to 7, attached to and forming a part of 
 this contract. 
 
 Art. IV. Conditions of acceptance and delivery. — The above-mentioned ma- 
 teriels, of the types in use in the French Army and complying with the regula- 
 tion technical requirements of acceptance provided for their manufacture, shall 
 be delivered at such places in France as shall be indicated by the chief ordnance 
 officer, A. E. F., by April 1, 1919, or at later dates, when the United States 
 authorities are prepared to accept delivery. 
 
 Art. V. Prices and conditions relative to same. — The transfer prices of above- 
 mentioned materiels (Art. II) are fixed as follows: 
 
 Francs, 
 (a) 312 75-m/m materiels with limbers, at frs. 30,080 the unit 
 
 (Table No. 1) 9,384,960 
 
 (ft) 632 75-m/m gun materiels with limbers, at frs. 30,018 the 
 
 unit (Table No. 2) 18,971,376 
 
 (c) 236 collections of spare parts at frs. 1,875 each (Table No. 3) _ 442, 500 
 
 (d) 700 155-m/m howitzer materiels with limbers, model 1917, 
 
 at frs. 89,000 the unit (Table No. 4) 62,300,000 
 
 (e) 198 155-m/m G. P. F. materiels with limbers, at frs. 145,850 
 
 the unit (Table No. 5) 28,878,300 
 
 if) Set of additional articles, spare parts, etc., for 155-m/m 
 
 howitzers (Table No. 6) 2, 524, 445. 40 
 
 (g) Sets of additional articles and spare parts, etc., for 155-m/m 
 
 G. P. F. (Table No. 7) 1,453,456.05 
 
 Total 123, 955, 037. 45 
 
 To be deducted, the value of 275 155-m/m guns (see Art. I, 
 par. id)) 6,453,150 
 
 Total 117, 501, 887. 45 
 
 The total value of the transfer granted amounts to the sum of one hundred 
 seventeen million five hundred and one thousand eight hundred eighty-seven 
 francs forty-five centimes. 
 
 These prices represent, as far as it has been possible to reckon them, the 
 actual cost prices to the French Government without profit. 
 
 They include all royalties and premiums for the use of patents or secret 
 processes, which may affect the use of any part of the material transferred. 
 
154 UNITED STATES LIQUIDATION COMMISSION. 
 
 The French Goveriinient aj^rees to protect the United States against all obli- 
 gations and all claims for royalties or other rights resulting from the use of 
 the material transferred with the exception of the following reservation : 
 
 Whereas valid patent rights may exist concerning this material, rights 
 which have never been published and which are still kept secret in virtue of the 
 stipulations of the law of April 12th, 1916; and whereas, furthermore, legal 
 claims may be made in the future; and whereas the French Government may 
 be obliged, in order to give satisfaction to such claims, to make payments which 
 will thus increase the present cost price of the transferred patented elements ; it 
 is therefore agreed that if, subsequent to the signing of the present covenant, 
 the French Government should be legally forced to pay, for any part of the 
 material transferred to the United States by the present covenant, an in- 
 demnity in the form of a royalty to the proprietor of a patent now held secret 
 by virtue of the above-mentioned law, the United States will, in such case, in- 
 demnify the .French Government for the additional expenses by paying, in 
 addition to the transfer price, a sum, the ratio of which to the whole amount 
 paid by the French Government will be equal to the ratio of the number of 
 patented articles transferred to the United States to the whole numbei- of such 
 articles manufactured by or for the French Government. 
 
 These provisions apply only to transfers referred to in the present covenant 
 and do not modify any conditions or clauses to the contrary which may have 
 been pr(»vided for in other covenants already made between the Governments. 
 
 Abt. VI. Payments. — After presentation and examination of the proper re- 
 ceipts and vouchers, the American Government will make settlement, as to the 
 indebtedness created by this contract, in such manner as shall be in use for such 
 settlements between the two Governments at the date of the settlement. 
 
 In conformity with the American law neither any member or delegate of the 
 American Congress, nor any person belonging to or employed in the military 
 services of the United States shall be admitted to any share in this contract, 
 nor to obtain any pro tit from it. 
 
 In conformity with the French law, the amount of the transfer belongs in 
 full to the French treasury ; neither any commission nor any sum of any kind 
 can be given, no matter under what form, to anybody whomsoever. 
 
 Made out in six copies, at Paris, on the 28th day of August, 1919. 
 
 Name and capacity of the representative of the French Government : 
 
 I-.. Maurin. 
 
 Name and capacity of the representative of the American Government : 
 
 E. D. Bricker, 
 Colonel, Ordnance Department, for Chief of Ordnance, 
 
 War Department, United States of America. 
 
 Witness : 
 
 F. A. Pattison, 
 
 Major, Ord. Dept. 
 
 Approved : United States Liquidation Com- 
 mission — War Department, 
 Edwin B. Parker, Chairman. 
 
UNITED STATES LIQUIDATION COMMISSION. 
 
 155 
 
 (2) Supplement to French Artillery and Ammunition Contract (Dated 
 
 Nov. 20, 1919). 
 
 This contract, entered into this 20th 
 day of November, 1919, by and be- 
 tween the United States of America 
 (hereinafter called "America"), act- 
 ing through the United States Liqui- 
 dation Commission — War Department, 
 Edwin B. Parker, chairman, of the one 
 part, and the Republic of France ( here- 
 inafter called "France"), acting 
 through M. le General Maurin, direc- 
 teur de Tartillerie, of the other part, 
 witnesseth : 
 
 That whereas on the 28th day of 
 August, 1919, the parties hereto en- 
 tered into an agreement " concerning 
 the final settlement of the orders for 
 artillery materials and ammunition 
 undertaken by France on behalf of the 
 United States and other matters " ; 
 and 
 
 Whereas subdivision (e) of Art. I 
 of the said contract of August 28, 1919, 
 provides in part as follows: 
 
 "(e) The United States Government 
 has delivered to the French Govern- 
 ment 110 155-m/m G. P. F. rough 
 cradle forgings, being part of an order 
 for 400 rough forgings. Sixty of these 
 cradles, being at the present time in 
 course of machining, shall be entirely 
 completed by France and delivered to 
 the United States. The settlement will 
 I)e the subject of an agreement when 
 the costs of the service rendered shall 
 hav« been determined ; the sum to be 
 paid shall be the. actual cost price to 
 the French Government " ; and 
 
 Whereas the work of machining the 
 said 60 cradles has now been completed 
 by the French Government and the ac- 
 tual cost thereof is frs. 861,000 ; 
 
 Now, therefore, in consideration of 
 the premises, it is agreed between the 
 parties hereto that America shall pay 
 to France the said sum of frs. 861,000, 
 the payment of which is hereby ad- 
 mitted and acknowledged by France in 
 full and final payment and settlement 
 
 Ce contrat. redige le 20 Novembre 
 1919. a ete etabli par et entre la Gou- 
 veruement des Etats Unis (appele ci- 
 apres "Amerique") Represente par la 
 Commission de Liquidation des Etats- 
 Unis du Departement. de la Guerre, 
 Edwin B. Parker, President, d'mie_ 
 part; et la Republique Francaise (ap- 
 pelee ci-apres "France"), representee 
 par M. le General Maurin, Directeur 
 de I'Artillerie, d'autre part ; 
 
 Etant donue que le 28 Aout 1919 les 
 parties ont conclu un accord concer- 
 nant le reglelnent final des ordres pour 
 le materiel d'artillerie, les munitions 
 et autres materiels entrepris par la 
 France pour le compte des Etats- 
 Unis; et 
 
 Etant donne qu'au paragraphe 
 (e) de I'Art. I du dit Contrat du 
 28 Aout 1919 il est mentionne ce qui 
 suit: 
 
 "(e) Le Gouvernement des Etats- 
 Unis a delivre au Gouvernement Fran- 
 cais 110 ebauches de glissieres pour 
 canons de 155-m/m G. P. F. faisant 
 partie d'une commande de 400 
 ebauches. 60 de ces glissieres etant 
 actuellement en cours d'usinage seront 
 entierement finies par la France et 
 livrees aux Etats-Unis. Le reglement 
 fera I'objet d'un accord lorsque le cout 
 du travail execute aura ete determine ; 
 la somme a payer sera le prix de re- 
 vient pour le Gouvernement Fran- 
 cais ; " et 
 
 Etant donne que le travail de fini- 
 tion des 60 glissieres sus-indiquees est 
 maintenant complement termine par le 
 (Gouvernement Francais et que le cout. 
 du travail s'eleve a 861,000; 
 
 En consequence, etant donne ce qui 
 precede, il a ete convenu entre les par- 
 ties sus-indiquees que I'Amerique 
 paiera a la France la dite somme de 
 861,0CK) Frs. Ce paiement est de ce 
 fait admis et reconnu par la France 
 comme reglement total et definitif de 
 
156 
 
 UNITED STATES LIQUIDATION COMMISSION, 
 
 of the balance due France under the 
 said subdivision (e) of Art. I of the 
 said contract of August 28th, 1919. 
 
 In witness whereof, on the day and 
 year lirst above written, this contract 
 has been executed in six parts, each 
 having the full force and effect of an 
 original, by the United States of Amer- 
 ica, acting through the United States 
 Liquidation Commission — War Depart- 
 ment, Edwin B. Parker, chairman, 
 and by the Republic of France, acting 
 through M. le General Maurin, di- 
 recteur de I'artillerie. 
 
 United States of America, 
 By Edwin B. Parker, 
 
 Chairman United States 
 Lfiquidation Commission — 
 War Department. 
 Republic of France, 
 By L. Maurin, 
 
 Directeur de VArtillerie. 
 
 la balance due a la France aux termes 
 du dit paragraphe (e) de I'Art. I du 
 dit Contrat du 28 Aout 1919. 
 
 En foi de quoi, le jour et I'annee 
 precites. ce Contrat a ete redige en six 
 exemplaires, chacun d'eux ayant la 
 meme valeur et effet qu'un original, 
 par les Etats-Unis d'Amerique, repre- 
 sentes par la Commission de Liquida- 
 tion des Etats-Unis. Departement de la 
 Guerre, Edwin B. Parker, President, 
 et par la Republique Francaise, repre- 
 sentee par M. le General Maurin, Di- 
 recteur de I'Artillerie. 
 
 Etats-Unis D'Amerique, 
 Par Edwin B. Parker, 
 President de la Commission de Liqui- 
 dation des Etats-Unis du Departe- 
 ment de la Guerre. 
 
 Republique Francaise, 
 Par L. Maurin, 
 
 Directeur de VArtillerie. 
 
 APPENDIX XXVIII. 
 
 Fbenoh Aib Service Settlement of Novembeb 8, 1919. 
 
 Memorandum of settlement between 
 the respective Air Services of the 
 United States of America and the Re- 
 public of France dated November 8, 
 1919. 
 
 Whereas in the general settlement 
 heretofore negotiated between the Air 
 Service of the War Department of the 
 United States of America (hereinaf- 
 ter called "America") and the Air 
 Service of the Republic of France 
 (hereinafter called "France"), France 
 was entitled to receive some American 
 Liberty motors and spares of the value 
 of sixteen million eight hundred and 
 five thousand five hundred dollars 
 ($16,805,500) which have been retained 
 by America and America was entitled 
 to receive airplanes and airplane ma- 
 terials of French manufacture of the 
 value of ninety-eight million three hun- 
 dred forty-four thousand and fourteen 
 
 Memorandum de Reglement entre les 
 Services A6ronautiques . respectif s des 
 Etats-Unis d'Amerique et la Republique 
 Francaise en date du 8 Novembre 1919. 
 
 Etant donne que dans le reglement 
 general en discussion jusqu'a ce jour 
 entre I'Air Service du War Departe- 
 ment des Etats-Unis d'Amerique (ci- 
 apr6s d6nomm6 "Amerique") et la Di- 
 rection de I'A^ronautique de la Repu- 
 blique Francaise (ci-apr^s d4nomm6e 
 "France"), la France 6tait en droit 
 de recevoir des moteurs Liberty et 
 pieces de rechange d'une valeur de 
 seize millions huit cent cinq mille cinq 
 cents (16,805,500) dollars qui ont 6t6 
 retenus par 1' Amerique et que 1' Ameri- 
 que etait en droit de recevoir des avions 
 et du materiel aSronautique provenant 
 des usines francaises d'une valeur de 
 quatre vingt dix huit millions trois 
 
UNITED STATES LIQUIDATION COMMISSION. 
 
 157 
 
 (frs. 98,344,014) francs which have 
 been retained by France. 
 
 Now, therefore, it is agreed : 
 
 That America shall retain the Lib- 
 erty motors and spares above men- 
 tioned of the value of sixteen million 
 eight hundred and five thousand 
 five hundred ($16,805,500) dollars, the 
 French bills for which against America, 
 stated in dollars and converted into 
 francs at the rate of 5.8523 francs for 
 one dollar, aggregate in amount 
 ninety-eight million three hundred fifty 
 thousand eight hundred and twenty- 
 seven francs (98,350,827 frs.). 
 
 That France shall retain the air- 
 planes and airplane materials of French 
 manufacture above mentioned of the 
 value of ninety-eight million three 
 hundred forty-four thousand and four- 
 teen (98,344,014) francs. 
 
 It is further agreed that said bills 
 of America against France, when so 
 converted, shall be offset against said 
 bills of France against America leav- 
 ing a balance due France of six thou- 
 sand eight hundred thirteen frs. 
 (6,813), for which amount France shall 
 receive credit in the settlement of ac- 
 counts between America and France 
 whereupon the said bills of America 
 against France and the said bills of 
 France against America shall be can- 
 celled as fully satisfied. 
 
 Attached hereto and marked for iden- 
 tification " Exhibit A" is the final state- 
 ment of account between the United 
 States of America and the Republic of 
 France in connection with the general 
 settlement for airplanes and motors 
 from which it appears (a) that the 
 total credit due America by France is 
 twenty-one million two hundred sev- 
 enty-tw^o thousand two hundred fifty 
 dollars (.$21,272,250) and (b) the total 
 credit due by America is one hundred 
 sixty-seven million seven hundred 
 eigthy thousand sixty -six (167,780,066) 
 francs plus one million eight hundred 
 
 cent quarante quatre mille quatorze 
 (98,344,014) francs qui ont et6 retenus 
 par la France. 
 
 II est en consequence aujourd'hui 
 entendu : 
 
 (1) Que I'Amerique retiendra les 
 moteurs Liberty et pieces de rechange 
 ci-dessus mentionn^s d'une valeur de 
 seize millions huit/cent cinq mille cinq 
 cents (16,805,500) dollars dont Jes_ 
 factures francaises sur I'Amerique 
 etablies en dollars et converties en 
 francs au taux de 5.8523 francs pour 
 un dollar s'61§vent a un total de quatre 
 vingt dix huit millions trois cents 
 einquante mille huit cent vingt sept 
 (98,350,827) francs. 
 
 (2) Que la France retiendra les 
 avions et le materiel aeronautique pro- 
 venant des usines francaises ci-dessus 
 mentionnees d'une valeur de quatre 
 vingt dix huit millions trois cent 
 quarante quatre mille quatorze (98,- 
 344,014) francs. 
 
 (3) II est de plus entendu que les 
 dites factures de I'Amerique sur la 
 France, apr§s cete conversion, seront 
 balancges avec les dites factures de la 
 France sur I'Amerique laissant un 
 produit dQ k la France de six mille huit 
 cent treize (6,813) francs, somme pour 
 laquelle la France sera credit6e sans 
 le r&glement de comptes entre I'Ameri- 
 que et la France sur quoi les dites 
 factures de I'Amerique sur la France et 
 de la France sur I'Amerique seront 
 annuiees comme compietement regimes. 
 
 (4) Ci- joint et intitule " Tableau A " 
 se trouve I'etat final de compte entre 
 les Etats-Unis d'Am6rique et la R6pu- 
 blique Francaise se relatif aux r^gle- 
 ments des avions et moteurs duquel 
 etat il appert (a) que la somme totale 
 due a I'Amerique par la France est de 
 ving et un millions deux cent soixante 
 douze mille deux cent einquante 
 (21,272,250) dollars, et (b) que la 
 somme totale due a la France par 
 I'Amerique est de cent soixante sept 
 millions sept cent quatre vingt mille 
 soixante six (167,780,066) frs. plus un 
 million huit cent quatre vingt neuf 
 
158 
 
 UNITED STATES LIQUIDATION COMMISSION. 
 
 eigrhty-nine thousand four hundred and 
 three and 60/100 ($1,889,403.60) dol- 
 lars. 
 
 It is agreed by both parties hereto 
 that tlie said statement is correct and 
 shall form the basis of stating a final 
 account in the general settlement now 
 being negotiated between France and 
 America, so far as concerns the Air 
 Service transactions between France 
 and America here referred to. 
 
 United States of America, 
 By Edwin B. Parkeb, 
 Chairman, United States Liquida- 
 tion Vommissimi — ^Var Department. 
 
 mille quatre cent trois dollars et 
 soixante cents (1,889,403.60 dollars). 
 
 U est entendu entre les deux parties 
 en cause que ledit 6tat est correct et 
 sera la base de retablissemeut du 
 compte final dans le reglement g6n6ral 
 actuellement en cours de n6gociation 
 ent^-e la France et I'Amerique en ce qui 
 regarde les transactions susvis6es entre 
 les Services Aeronalitiques Francals et 
 Americains. 
 
 R^publique Francaise, 
 
 Approuv6 le 10 Novembre 1919. 
 
 Le President du Conseil Ministre de 
 la Guerre. 
 
 Direction de I'A^ronautique: 
 
 (Signed) M. Duval. 
 
 "Exhibit A." — United States Liquidation Commission — War Department. 
 
 Statement of account betirecn the United States of America and the Republic 
 of France in connectimi with genei'al settlcnwnt for airplanes and motms. 
 
 Amount in 
 francs. 
 
 Amount in 
 dollars. 
 
 Charges against France: 
 
 Liberty motors and spare parts, Cuthell agreement of May 29, 1919 . 
 
 Total credit due United States from France. 
 
 Credits due France: 
 
 Airplanes and motors in process of construction at date Francs. 
 
 of armistice 120, &59, 4.50. 00 
 
 Cancellation indemnities for airplanes and motors 14, 710, 5.S7. 00 
 
 Spare parts in process of construction 19, 962, 5.5.3. 00 
 
 Cancellation indemnity for spares 8, 225, 004. 00 
 
 Total 163,757,544.00 
 
 Miscellaneous mat^xiel in process of manufacture 
 
 Cancellation indemnities account of miscellaneous materiel 
 
 3,496,628.00 
 413,589.00 
 
 105,492.00 
 
 Total .3, 910, 217. 00 
 
 Cost of delivery by aerial route of 596 airplanes @ fr. 177.00 
 each 
 
 Credit due France under exchange of Liberty motors for 
 
 French airplanes and mat^el 
 
 Payments made on account of motors and spares that were 
 not credited against charge of $21,272,250.00 included in 
 Cuthell agreement: 
 
 April, 1919, frs. 9,641,406.26® 5.80 $1,662,311.43 
 
 May, 1919, frs. 1,349,347.12 @ 6.05 223,032.58 
 
 July, 1919, frs. 26,184.37' " " 
 
 6.45. 
 frs. 11,016,937.75 
 Total credit due France from the United States . 
 
 4,059. 
 
 163,757,544.00 
 
 3,910,217.00 
 
 105,492.00 
 6,813.00 
 
 21,272,250.00 
 
 21,272.250 00 
 
 1,889,403.60 
 
 167,780,066.00 
 
 1,889,403.60 
 
UNITED STATES LIQUIDATION COMMISSION. 
 
 159 
 
 " Tableau A." — Commission de Liquidation Americain6 — War Department. 
 
 Etat du compte entre les Etats-TJnis d'Amerique et la RepuUique Francaise 
 relatif au reglement general pour les avions et moteurs. 
 
 Montant en 
 francs. 
 
 Montant en 
 dollars. 
 
 Dette de la France: 
 
 Moteurs Liberty et pieces de rechanges, accord Cuthell du 29 mai 1919. 
 
 Cr^iit total d<i par la France aux Etats-Unis 
 
 Sommes dues a la France: 
 
 Avions et moteurs en cours de construction a la date Francs. 
 
 de r armistice 120, 859,450.00 
 
 Indemnite de resiliation pour avions et moteurs 14, 710, 537. 00 
 
 Pieces de rechanges en cours de construction 19, 982, 553. 00 
 
 Indemnity de resiliation pour les pieces de rechanges . . 8, 225, 004. 00 
 
 Total 163, 757, 544. 00 
 
 Materiel divers en cours de fabrication 3, 496,. 628. 00 
 
 Irtdemnite de resiliation pour le materiel divers 413, 589. 00 
 
 Total 3, 910, 217. 00 
 
 Co<lt de la livraison par voie de I'air de 596 avions: 177 
 
 francs pour chacun 105, 492. 00 
 
 Somme due k la France en vertu de 1 'ecbange de moteurs 
 
 Liberty contre du materiel aeronautique frangais 
 
 Paiements effectues sur le compte moteurs Liberty et 
 
 pieces de rechangc qui n'ont pas 6te d6duits du 
 
 prix total de 21,272,250 dollars inclus dans I'accord 
 
 Cuthell: 
 
 Avril 1919, frs. 9, 641, 406. 26 au taux de 5. 80. . 
 
 Mai 1919, frs. 1,349,317. 12 au taux de 6.05... 
 
 Juil. 1919, frs. 26, 184. 37 au taux de 6.45... 
 
 frs. 11,016,937.75 
 
 Somme totale due k la France par les Etats-Unis. 
 
 $1,662,311.43 
 
 223, 032. 58 
 
 4,059.59 
 
 1,889,403.60 
 
 16.3,757,544.00 
 
 3,910,217.00 
 
 105, 492. 00 
 
 6, 813. 00 
 
 167,780,066.00 
 
 21, 272, 250. 00 
 
 21,272,250,00 
 
 1,889,403.60 
 1,889,403.60 
 
 APPENDIX XXIX. 
 
 Contract Between United States of America and Republic of France for the 
 Settlement of Railroad Transportation and Other Claims, October 1, 1919. 
 
 This contract entered into tliis first 
 day of October, A. D. 1919, by and be- 
 tween tlie United States of America 
 (hereinafter called America), acting 
 through the United States Liquidation 
 Commission — War Department, of the 
 one part ; and the Republic of France 
 (hereinafter called France), acting 
 through le Ministre des Travaux Pub- 
 lics des Transports et de la Marine 
 Marchande, of the other part; Wit- 
 nesseth : 
 
 Entre les Etats-Unis d'Amerique (ci- 
 apr6s dSnommes Amerique), repr6- 
 sent^s par la Commission de Liquida- 
 tion des Etats-Unis — War Department 
 d'une part ; et la R4publique Francaise 
 (cj-apr4s denomm^e France), repre- 
 sentee par Monsieur la Ministre des 
 Travaux Publics des Transports et de 
 la Marine Marchande d'autre part; la 
 Convention suivante a et6 passee k la 
 date du 1° Octobre, 1919; 
 
 Recitals. 
 
 Expose. 
 
 That whereas America upon its en- 
 try into the war on April 6th, 1917, 
 aranged with France to provide and 
 to cause the French railroads to pro- 
 vide, during the presence in France of 
 
 Etant donne que TAmgrique, au 
 moment de son entree en guerre le 6 
 Avril 1917, a convenu avec la France 
 que celle-ci pourvoierait ou ferait 
 pourvoir par les Reseaux Francais, 
 
160 
 
 UNITED STATES LIQUIDATION COMMISSION. 
 
 the American forces, transportation 
 for tlie personnel, animals, and freight 
 of said forces at rates not to exceed 
 those to be paid by France for similar 
 services; and France has provided or 
 caused to be provided said transporta- 
 tion; and 
 
 Whereas in connection with rail- 
 road transportation in France the re- 
 spective parties and the French rail- 
 roads furnished or caused to be fur- 
 nished to one another the use of cer- 
 tain terminal facilities at docks and 
 elsewhere, also locomotives, cars, ma- 
 chine shop and other equipment, the 
 services of certain personnel, and they 
 provided to one another certain sup- 
 plies and materials, and performed for 
 one another certain services, the com- 
 pensation for which remains to be set- 
 tled and adjusted; and 
 
 Whereas there exist various claims 
 in France by eaeh of the parties 
 against the other, and by the French 
 railroads against America and by 
 America against the French railroads, 
 arising out of losses of or damages to 
 freight and damages to railway prop- 
 erty ; and 
 
 Whereas the parties desire to ad- 
 just any and all claims and demands 
 of every kind, nature, and description 
 whatsoever of France or of the French 
 railroads against America, and any 
 and all claims of every kind, nature, 
 and description whatsoever of Amer- 
 ica against France or against .the 
 French railroads arising out of the 
 transactions referred to in the fore- 
 going recitals, and all claims of the 
 French Navigation Office, up to and in- 
 cluding September 30, 1919 ; and 
 
 Whereas the parties desire to re- 
 adjust said arrangement entered into 
 upon America's entry into the war for 
 the transportation over the French rail- 
 roads of the personnel, animals, and 
 
 pendant la presence des troupes Am6r^- 
 caines, aux transports de personnel, 
 animaux et materiel des dites forces k 
 des tarifs ne devant pas exc6der ceux 
 payes par la France pour des services 
 semblables. Etant donn4 que la 
 France a pourvu aux transports sus- 
 vis^s, 
 
 Vu que, en ce qui concerne les trans- 
 ports sur les R6seaux Francais, les par- 
 ties respectives et les R^seaux Fran- 
 cais ont fourni, ou fait fournir les 
 uns aux autres I'usage de certaines 
 installations, soit aux ports, soit en 
 d'autres points des dits Reseaux, de 
 locomotives, wagons, ateliers et autres 
 mat^riels, ainsi que les services de cer- 
 tains personnels; qu'ils se sont fouc- 
 uis reciproquement certains ravitaille- 
 ments et mat4riels, et se sont rendus 
 nmtuellement certains services dont la 
 compensation reste a 6tablir et a liqui- 
 der; 
 
 Etant donn6, qu'il existe des recla- 
 mations diverses en France de chacune 
 des parties contre I'autre, et des R6- 
 seaux Francais contre I'Amerique, et 
 de I'Amerique contre les R6seaux 
 Francais, reclamation dues k des 
 pertes ou a des dommages au materiel 
 *^ransport4 et a des dommages k despro- 
 pri6t6s des dits R6seaux de Chemin de 
 Fer; 
 
 Etant donn6 que les parties d^sirent 
 r^gler chacune et toutes reclamations 
 de tout esp6ce, nature et genre, de 
 France ou des Reseaux Francais contre 
 I'Amerique et toutes reclamations de 
 toute espece, nature et genre de 
 I'Amerique contre la France ou les Re- 
 seaux Francais, reclamations relatives 
 aux questions exposees dans les Ar- 
 ticles suivants, et toutes reclamations 
 de I'Office Francais de la Navigation, 
 toutes ces reclamations concernant la 
 periode s'etendant jusqu'au 30 Sep- 
 tembre, 1919, inclus ; 
 
 Etant donne que les parties desirent 
 remettre au point I'arrangement con- 
 clu au moment de I'entree en guerre 
 de I'Amerique pour le transport sur les 
 Reseaux Francais du personnel, ani- 
 
UNITED STATES LIQUIDATION COMMISSION. 
 
 161 
 
 freight of tlie American forces, in so far 
 as it covers the period on and after 
 October 1, 1919, until December 31, 
 1919, inclusive: 
 
 Now, therefore, in consideration ot 
 the premises and for tlie otlier consid- 
 erations herein stated, it is agreed as 
 follows : 
 
 Article One. Agreement. — America 
 will pay to France the sum of four 
 Inmdred and thirty-four million, nine 
 liundred and eighty-five thousand 
 three hundred and eighty-nine and 
 73/lf)0 (434.985,389.73) francs. 
 
 Akticle Two. America waives any 
 and all claims which it may or might 
 have against France on account of or 
 arising from any and all of the trans- 
 actions referred to in the recitals of 
 this contract up to and including Sep- 
 tember 30, 1919. 
 
 Article Three. America assigns to 
 P^rance any and all claims which 
 America may or might have against 
 the French railroads on account of or 
 arising from any and all of the trans- 
 actions referred to in the recitals of 
 this contract up to and including Sep- 
 tember 30th, 1919, and will, accord- 
 ingly, hand to France sucli statements 
 of account as may permit France to 
 make such claims against the French 
 railroads. 
 
 Article Four. France waives and 
 will save America harmless from any 
 and all claims which France or the 
 French railroads may or might have 
 against America on account of or aris- 
 ing from any and all of the transac- 
 tions referred to in the recitals of this 
 contract, and all claims of the French 
 Navigation Office, up to and including 
 September 30, 1919. 
 
 Article Five. On and after October- 
 1, 1919, and until December 31, 1919, 
 France will furnish or cause the 
 French railroads to furnish transpor- 
 tation over the French railroads for 
 the personnel, animals, and freight 
 of said forces at the same rates at 
 188176—20 11 
 
 maux et materiel des Forces Aineri- 
 caiiies, en tant qu'il couvre la p6riode 
 s'6tendant du V Octobre 1919, inclus, 
 an 31 Decembre 1919, inclus. 
 
 La convention suivante a §te agree 
 d'un commun accord eu 6gard aux con- 
 siderations ci-dessus et ci-apr6s ex- 
 posees : 
 
 Article I. Accord.— L'Am^rique re- 
 connait devoir a la France la somme-de 
 quatre cent trente-quatre millions, neuf 
 cent quatre-vingt cinq mille, trois cent 
 quatre-vingt neuf francs, 73 centimes 
 (434,985,389.73). 
 
 Article II. — L'Amerique renonce ^ 
 chacune et toutes reclamations qu'elle 
 a, ou pourrait avoir contre la France, 
 causees par ou provenant de cliacune 
 et toutes les questions mentionn^es 
 dans la teneur de la presente conven- 
 tion jusqu'au 30 Septembre 1919 inclus. 
 
 Article III. — L'Amerique transf^re 
 a la France tons les droits sans excep- 
 tion qu'elle pent ou pourrait avoir 
 contre les Reseaux Francais a cause 
 ou du fait d'une ou quelconque des 
 questions mentionn§es dans I'expose de 
 la presente convention jusque et y 
 compris le 30 Septembre 1919, et remet- 
 tra en consequence H la France les 
 pieces de comptabilite qui lui per- 
 mettent de formuler des declamations 
 contre les Reseaux Francais. 
 
 Article IV. — La France renonce a 
 et decharge I'Amerique de, chacune et 
 toutes reclamations que la France ou 
 les Reseaux Francais ont ou auraient 
 contre I'Amerique & cause, ou du fait 
 de chacune et toutes questions men- 
 tionnees dans I'expose de la presente 
 convention, ainsi que les reclamations 
 de rOffice Francais de la Navigation, 
 toutes ces reclamations pour la pe- 
 riode s'etendant jusqu'au 30 Septembre, 
 1919 inclus. 
 
 Article V. — ^A partir du 1 er Octobr,^ 
 1919 et jusqu'au 31 Decembre 1919, la 
 France assurera le transport snr le 
 reseau ferre francais du personnel, 
 animaux et marchandises des Forces 
 Americaines au meme tarif et sous les 
 memes conditions qui seront appliques 
 
162 
 
 UNITED STATES LIQUIDATION COMMISSION. 
 
 which and' on the same terms and con- 
 siderations under which said railroads 
 shall, during the same period, furnish 
 transportation for the personnel, ani- 
 mals and freight of the French Army. 
 In witness whereof, on the day and 
 year first above written, this contract 
 has been executed in four parts, each 
 1 laving the full force and effect of an 
 original, by the United States of 
 America, acting through the United 
 States Liquidation Commission — War 
 Department, Edwin B. Parker, chair- 
 man ; and by the Republic of France, 
 acting through le Ministre des Tra- 
 vaux Publics, des Transports et de la 
 Marine Marchande. 
 
 United States of America, 
 H.V Edwin B. Parker, 
 
 Chairman, United States 
 Liquidation Commission — 
 War Department. 
 Repurlic of France, 
 By A. Claveille, 
 Ministre des Travaux, 
 Publics des Trunsports et 
 de la Marine Marchande. 
 
 1 October, 1919. 
 M. le Ministre des Travaux Publics 
 
 des Transports et de la Marine 
 
 Marchande, Paris. 
 
 It is understood that the term 
 ■* American forces " as used in the con- 
 tract between America and France 
 dated October 1, 1919, for the settle- 
 ment of transportation matters, up to 
 and including September 30, 1919, in- 
 cludes the American land and naval 
 forces and all affiliated organizations 
 (like the Y. M. C. A., American Red 
 Cross, Salvation Army, Jewish Wel- 
 fare League, etc.) and that this settle- 
 ment covers all claims arising out of 
 transportation furnished on Ordres de 
 Transport issued by American author- 
 ity ; but, in waiving the claims referred 
 to in Article Two of said contract 
 America does not undertake to waive 
 any claims which the American Red 
 Cross may have arising out of trans- 
 portation furnished to it on Ordres de 
 Tranc:port issued by the French Army, 
 ^.ut only chiinis arisin/x out of trans- 
 
 pendant la meme periode aux trans- 
 ports militaires francais. 
 
 En foi de quoi, le jour et I'annes ci- 
 dessus, la presente convention a et^ 
 faite en quatre expeditions, chacune 
 ayant la valeur et I'effet d'un original, 
 par les Etats-Unis d'Amerique agissant 
 par I'interm^diaire de la Commission de 
 Liquidation des Etats-Unis, Ministere 
 de la Guerre, Edwin B. Parker, presi- 
 dent ; et par la Republique Francaise, 
 agissant par I'intermediaire du Minis- 
 tre des Travaux Publics des Trans- 
 ports et de la Marine Marchande. 
 IiItats-Unis d'Amerique, 
 Par P:dwin B. Parker, 
 Le President de la Commission de 
 
 Liquidation des Etats-Unis, Minis- 
 
 t^re de la Ouerre. 
 
 Republique Francaise, 
 Par A. Claveille, 
 Le Ministre des Travaux Publics 
 
 des Transports et de la Mariiie 
 
 Marchande. 
 
 1" OCTOBRE 1919. 
 
 M<msieur le Ministre des Travaux 
 Publics des Transports et de la 
 Marine Marchande, Paris. 
 U est entendu que le terme " Forces 
 Americaines," tel qu'il est employe 
 dans la convention entre I'Amerique et 
 la France en date due l®"" Octobre 
 1919, pour le r^glement des affaires 
 de transport jusqu'au 30 Septembre 
 1919 inclus, comprend les Forces 
 Americaines de terre et de mer et 
 toutes les organisations aliiliees (comme 
 le Y. M. C. A., la Croix-Rouge Am^ri- 
 caine, TArmee du Salut, le Welfare 
 League Israelite, etc.) et que ce r^gle- 
 ment couvre toutes reclamations cau- 
 sees par les transports fournis sur or- 
 dre de transport etablis par I'Autorit^ 
 Am^ricaine; mais en ecartant les 
 reclamations dont il est question dans 
 I'artide II dudit contrat, TAmerique 
 n'entreprend pas d'ecarter les reclama- 
 tions que la Croix Rouge Am^ricaine 
 aurait k formuler en raison de trans- 
 ports k elle; fournis sur ordres de 
 
UNITED STATES LIQUIDATION COMMISSION. 
 
 16a 
 
 portation under Ordres de Transport 
 issued by the A. E. F. 
 
 (Signed) Edwin B. Parker, 
 
 Chairman, U. S. Liquidation 
 Commission — Vt\ir Department. 
 
 Acrc^pted: Paris, 1 October, 1919. 
 (Signed) A. Claveille, 
 Le Ministre des Travaux 
 Puhlics des Transports 
 et dc hi Marine Marchande. 
 
 transport etablis par I'Armee Fran- 
 caise, mais seiilement les reclamations 
 causees par les transports par ordres 
 de transport etablis par I'A. E. F. 
 (Signed) Edwin B. Parker, 
 
 President, Commission de Liquida- 
 tion TJ. S., Ministere de la Guerre, 
 
 Accepte: Paris, 1" Octobre 1919. 
 (Signe) A. Olaveille, 
 
 Le Ministre des Travaux PiJ&Zttjt- 
 des Transports et de la Marine 
 Marchande. 
 
 APPENDIX XXX. 
 
 Contract Between United States of America and Republic of France* 
 October 1, 1919 — Port Dues Settlement. 
 
 This contract, entered into this first 
 day of October, A. D. 1919, by and be- 
 tween the United States of America 
 (hereinafter called America), acting 
 through the United States Liquidation 
 Commission — War Department, of the 
 one part; and the Republic of France 
 (hereinafter called France), acting 
 through le Ministre des Travaux Pub- 
 lics des Transports et de la Marinb 
 ^Merchande. of the other part; wit- 
 nesseth : 
 
 Recitals. 
 
 That irlicrcas, vessels operating in 
 the service of or transporting persons 
 or property for America have, under 
 an arrangement entered into between 
 France and the American Expedition- 
 ary Forces, used the ports of France 
 since America's entry into the war on 
 April 6th. 1917, and will use said ports 
 until the total evacuation of France 
 by the American Forces ; and 
 
 Whercax. claims have been and are 
 being made in connection with the use 
 of said ports by said vessels, espe- 
 fi;illy 0)1 account of the nonpayment of 
 j'crt dues (tfixe de p^age), and on ac- 
 count of tlie expenses incurred in rais- 
 ing the water level at St. Nazaire; and 
 
 Vi'hcrea-'-', tlie parties desire to settle 
 and adjust all of said claims of every 
 nature whatsoever now existing: and to 
 
 Entre le Gouvernement des Etats- 
 Unis d'Amerique (ci-apres denommes 
 Amerique) represente par la Commis- 
 sion de Liquidation du Departement de 
 la Guerre d.es Etats-Unis d'une part, 
 et le Gouvernement de la Republique 
 Frangaise (ci-apres denommee France) 
 represente par M. le Ministre des; 
 Travaux Publics des Transports et de 
 la Marine Marchande d'autre part, il a 
 ete conclu, a la date du 1 Octobre^ 
 1919, le contrat suivant: 
 
 Expose. 
 
 Etant donne que les navires, an 
 service de 1' Amerique, ou transportant 
 du personnel ou des marchandises pour 
 son compte, d'apres une convention 
 etablie entre la France et les Forces 
 Expeditionnaires Americaines, ont uti- 
 lise les ports frangais depuis I'entree 
 en guerre de I'Amerique, le 6 Avril 
 1917, et les utiliseront encore jusqu'a 
 I'evacuation totale de la France par les 
 Forces Americaines, 
 
 Etant donne que des reclamations 
 ont ete faites et le sont encore, au 
 sujet de I'usage des dits ports par les 
 dits navires, particulierement a cause 
 du non paiement des taxes de peage 
 et au sujet des depenses occasionnees 
 par le relevement du plan d'eau de St. 
 Nazaire. 
 
 Etant donne que les hautes parties 
 contractantes desirant determiner et 
 liquider toutes les reclamations telles 
 
164 
 
 UNITED STATES LIQUIDATION COMMISSION. 
 
 readjust said arrangement in so far as 
 it concerns the period from tlie pres- 
 ent date until the total evacuation of 
 France by the American Forces; 
 
 Now, therefore, in consideration of 
 the premises and for the other consid- 
 erations herein stated, it is agreed as 
 follows : 
 
 Article One. Agreement. — America 
 will pay to France the sum of three mil- 
 lion (3,000,000) francs. 
 
 Article Two. France waives and 
 will save America and said vessels, 
 their owners, charterers or masters, 
 harmless from any jind all claims which 
 France, or the chambers of commerce, 
 •or the municipalities of said ports, or 
 ;any one whosoever, may have, on ac- 
 Cfount of the use of said ports by said 
 vessels, from the entry of America into 
 the War until the date hereof, for port 
 dues ( taxe de p6age) , or for expenses in 
 raising the water level at St. Nazaire 
 or elsewhere, or for any other port 
 facility or service afforded to said ves- 
 sels, save only the special charges for 
 pilotage, for the occupation of hangars, 
 for the use of cranes, and for similar 
 special facilities and services (herein- 
 after designated "special services") 
 for which America has been paying 
 currently and will continue to pay 
 when and as rendered. 
 
 Article Three. France agrees that 
 such vessels may, from the present date 
 until the total evacuation of France 
 by the American forces, use said ports 
 without paying for said use during 
 said period any of said port dues ( taxe 
 de peage), and without paying any of 
 the expenses for raising the water level 
 at St. Nazaire or elsewhere, and with- 
 out paying for any other port facility 
 or service afforded to such vessels 
 (save only said special services), and 
 will save America and such vessels, 
 their owners, charterers, and masters, 
 
 qu'elles existent a I'heure actuelle et 
 incorporer dans la presente convention 
 toutes celles qui s'appliquent a la pe- 
 riode s'etendaut depuis ce jour jusqu'a 
 Tevacuation totale de la France par 
 les Forces Americaines ; 
 
 La convention suivante a ete passee, 
 par applications des considerations ci- 
 (lessus et suivant les dispositions con- 
 tenues dans le present document : 
 
 Article 1. Accord. — I'A m e r i q u e 
 paiera a la France la somme de trois 
 million de francs (3,000,000). 
 
 Article 11. La France exonore 
 I'Amerique et les dits navires, ainsi 
 que leurs proprietaires, locataires ou 
 capitaines, de toutes les reclanuitions 
 que le Gouvernement Francais, ou les 
 chambres de connnerce, ou les nmni- 
 cipalites des dits ports, ou n'importe 
 quelles autres autorites, peuvent faire 
 valoir, au sujet de I'usage des dits 
 ports par les dits navires, depuis Ten- 
 tree en guerre de I'Amerique jusqu'a la 
 date ci-dessus indiquee soit pour des 
 taxes de peage ou des dei)enses oc- 
 casionnees par le relevement du i)lan 
 d'eau de Saiut-Nazaire ou autres ports, 
 soit pour tons autres services rendus 
 aux dits navires dans un port quel- 
 conque; exception est faite seulement 
 pour les frais speclaux de pilotage, 
 d'occupation de hangars, d'usage do 
 grues et pour les avantages et services 
 speclaux de meme nature (frais, avan- 
 tages et services designes sous le 
 nom ci-apres, de " Services speciaux " ) 
 pour lesquels I'Amerique a paye et 
 continuera de payer au fur et a 
 mesure. 
 
 Article III. — La France admet que 
 les dits navires pourront, a partir de 
 cette date jusqu'a I'evacuation totale 
 de la France par les Forces Ameri- 
 caines, utiliser les dits ports sans avoir 
 a payer, pendant la dite periode, au- 
 cune des taxes de peage, ui aucune des 
 depenses de relevement du plan d'eai 
 de St. Nazaire ou d'autres ports, nij 
 aucun autre service rendu aux dits 
 navires dans un port quelconque (ex^j 
 cepte seulement s'il s'agit des Services 
 dits Speciaux) et elle exonerera pai 
 suite I'Amerique et les dits navires. 
 
UNITED STATES LIQUIDATION COMMISSION. 
 
 165 
 
 harmless from any and all claims on ac- 
 count of all of the foregoing, save only 
 claims on account of the said special 
 services. 
 
 In witness whereof, on the day and 
 year tirst above written, this contract 
 has been executed in four parts, each 
 having the full force and effect of an 
 original, by the United States of 
 America, acting through the United 
 States Liquidation Commission — War 
 Department, Edwin B. Parker, chair- 
 man ; and by the Republic of France, 
 acting through le Ministre des Travaux 
 Publics des Transports et de la Marine 
 Marchaude. 
 
 UjsIted States of AiiERicA, 
 By Edwin B. Parker, 
 Chahman, Lnlted istates Liquidotion 
 Comniission — War Department. 
 
 Republic of France, 
 By A. Claveille, 
 
 Le Ministre des Travaux 
 Fuhlics des Transports 
 et de la Marine Marchande. 
 
 ainsi que leurs proprietaires, locataires 
 et capitaines, de toutes reclamations, 
 conformement aux indications ci-des- 
 sus, a I'exception seulement des recla- 
 mations concernant les Services dits 
 Speciaux. 
 
 En foi de quoi et a la date ci-dessus 
 indiquee le present contrat a ete dresse 
 en quatre exemplaires, pour valoir 
 chacun d'eux comme original, par le 
 Gouvernement des Etats-Unis d'Ame-- 
 rique a^issant par I'intermediaire du 
 President de la Commission de Liqui- 
 dation du Ministere de la Guerre des 
 Etats-Unis, Edwin B. Parker, et par 
 le Gouvernement de la Republique 
 Francaise agissant par I'intermediaire 
 de Monsieur le Ministre des Travaux 
 Publics des Transports et de la Marine 
 Marchande. 
 
 Etats-Unis d'Amerique, 
 Par Edwin B. Parker, 
 
 President dela Commission 
 de Liquidation du Departe- 
 nient de la Guerre des 
 Etats-Unis. 
 Republique Francaise, 
 Par A. Claveille, 
 
 Le Ministre des Travaux 
 Publics des Transports et 
 de la Marine Marchande. 
 
 APPENDIX XXXI. 
 
 Contract Between United States of America and Republic of France 
 Evidencing Geneil\l Settlement of All Mutual Accounts, Claims, and 
 Demands Arising in Europe, November 20, 1919. 
 
 This contract entered into this 20th 
 day of November, A. D. 1919, by and 
 between- the United States of America 
 (hereinafter called "America"), act- 
 ing through the United States Liqui- 
 dation Commission — War Department, 
 Edwin B. Parker, chairman, of the 
 one part, and the Republic of France 
 (hereinafter called "France") acting 
 through the Controleur de I'Adminis- 
 tration de TArmee Edouard Boulanger, 
 under reserve of the approval of the 
 interested ministers, of the other part, 
 witnesseth : 
 
 General considerations. 
 
 That whereas, between the 6th day 
 of April, 1917, and the 20th day of 
 
 Le present contrat redig6 le 20 No- 
 vembre 1919 a ete etabli par et entre : 
 
 Le Gouvernement des Etats-Unis 
 (appele ci-apres Amerique) represente 
 par la Commission de Liquidation des 
 Etats-Unis du Departement de la 
 Guerre, Edwin B. Parker, president, 
 d'une part, et la Republique Francaise 
 (appelee ci-apres France) representee 
 par M. le Controleur de l''" Classe de 
 FAdministration de TArmee, Boulan- 
 ger, agissant, sous reserve de I'Appro- 
 bation des Ministres interesses, d'autre 
 part. 
 
 Considerations generales. 
 
 Etant donne qu'entre le 6 Avril 1917 
 et le 20 Aout 1919, (periode denommee 
 
166 
 
 UNITED STATES LIQUIDATION COMMISSIOISr. 
 
 August, 1919 (hereinafter designated 
 "War period") tlie War Department 
 of tlie United States of America and 
 tlie American Expeditionary Forces on 
 the one part (hereinafter called "War 
 Department " ) and the Republic of 
 France, on the other part, had numer- 
 ous transactions between each other 
 •connected with or incidental to the 
 •conduct of the war in the prosecution 
 of which the parties were associated ; 
 and 
 
 Whereas America, for said War De- 
 partment, and France desire, with re- 
 spect to such of the said transactions 
 as occurred in Europe, to make full, 
 final and complete settlement of all 
 bills, accounts, claims, obhgations. de- 
 mands, rights and causes of action of 
 every nature whatsoever, whether 
 growing out of the delivery of or con- 
 tract for the delivery of material, sup- 
 plies or equipment or for services ren- 
 dered, or contracted to be rendered, 
 or for the occupation and use of 
 all public properties of France of the 
 domain of the State and all damages 
 thereto, initiated or otherwise aris- 
 ing or accruing during the said war 
 period, said settlement to be herein- 
 after designated as a *' European set- 
 tlement " ; and 
 
 Whereas the said European settle- 
 ment " relates wholly and solely to the 
 transactions concerning which the pro- 
 cedure was established by mutual 
 agreements by the following instruc- 
 tions : 
 
 Instruction No. 4 of January 17, 
 1918, of the Office General des Rela- 
 tions Franco- Americaines ; 
 
 Instruction No. 4 bis of October 28, 
 1918, of the Commissariat General des 
 Affaires de Guerre Franco-Ameri- 
 caines ; 
 
 Instruction No. 15 of October 2, 
 1918, issued by the Commissariat Gen- 
 eral des Affaires de Guerre Franco- 
 Americaines ; 
 
 Copy of these instructions are an- 
 nexed hereto and marked for identi- 
 fication Exhibit A. 
 
 ci-apres " Periode de Guerre"), le De- 
 parteiiienr de la Guerre des Etats-Uni.s 
 d'Anierique ainsi que le.s Forces Ex- 
 peditionnaires Americaines (denommes 
 ci-apres " Departement- de la Guerre ") 
 d'une part, et la Republique Francaise, 
 d'autre part, out eu entre eux de nom- 
 breuses transactions liees plus ou 
 moins incidentment a la conduite de la 
 Guerre pour la poursuite de laquelle 
 les deux parties s'etaient associees ; 
 
 Etant donne que I'Amerique. pour le 
 dit Departement de la Guerre, et la 
 France desirent etablir un reglement 
 en tier, detinitif et complet, en raison 
 des transactions nientionnees ci-apres 
 qui se sont poursuivies en Europe, d^ 
 toutes les factures, comptes, reclama- 
 tions, obligations, demandes, droits et 
 motifs d'actions de quelque nature que 
 ce soit, qui proviennent de la livraison 
 ou de contrats pour la livraison du ma- 
 teriel, approvisionnements ou equipe- 
 ments, ou pour services rendus ou de- 
 vant etre rendus suivaut contrat, ou 
 pour I'occupation et usage de toutes les 
 proprietes publiques de la France du 
 Domaine de I'Etat et tous dommages 
 qui i)ourraient y avoir ete faits, ou 
 engendres d'une autre maniere, surve- 
 naut ou s'augmentant pendant la dite 
 periode de Guerre, le dit reglement 
 devant etre ci-apres designe sous le 
 nom de " Reglement Europeen." 
 
 Etant entendu que le dit " Regle- 
 ment Europeen " s'etend en totalite et 
 uniquement aux transactions dont la 
 procedure a ete etablie d'un commun 
 accord par les instructions ci-apres : 
 
 No. 4. du 17 Janvier 1918 de I'Ofhce 
 General des Relations Franco-Ameri- 
 caines ; 
 
 No. 4 l)is (hi 28 Octobre 1918. du 
 Commissariat General des Affaires de 
 Guerre Franco-Aniericaines ; 
 
 No. 15 du 2 Octobre 1918, due Com- 
 missariat General des . Affaires de 
 Guerre Franco- Americaines ; 
 
 Desquelles instructions un exem- 
 plaire est annexe au present contrat 
 (annexe C). 
 
UNITED STATES LIQUIDATIOK" COMMISSION". 
 
 167 
 
 Now, therefore, in consideration of 
 the premises and for the other con- 
 siderations herein stated, it is mutually 
 a^srreed between the parties hereto as 
 follows : 
 
 Article I. The total of all amounts 
 to the credit of France against the 
 said War Department aggregates one 
 billion nine hundred fifty-seven million 
 seven hundred fifty-nine thousand one 
 hundred and thirteen francs forty-one 
 centimes (frs. 1,957,759,113.41) plus 
 five million four hundred twenty-two 
 thousand seven hundred and six and 
 15/100 ($5,422,706.15) dollars. 
 
 Article II. The total of all amounts 
 to the credit of America for the said 
 War Department against France ag- 
 gregates four hundred and sixty-nine 
 million one hundred and forty thousand 
 and eighty-five francs eighty-nine cen- 
 times (frs. 469,140,085.89), plus twenty- 
 one million eight hundred fifty-nine 
 thousand six hundred sixty and 20/l(X) 
 ($21,859,660.20) dollars. 
 
 Article III. All bills, accounts, 
 claims, obligations, and demands of 
 every nature whatsoever in respect of 
 the aforesaid transactions between the 
 said War Department on the one part 
 and the Republic of France on the other 
 part, which said transactions arose or 
 accrued in Europe prior to August 20, 
 1919, and which are not embraced in 
 this European settlement, shall be for- 
 ever barred and shall not be asserted 
 by one of the parties hereto against 
 the other. 
 
 Article IV. It is further agreed be- 
 tween the parties hereto as follows : 
 
 {a) In this European settlement 
 America has agreed to transfer and 
 pay to France, in specie, the sum of 
 6,986,500.43 Swiss francs now on de- 
 posit at Berne, Switzerland, to the 
 credit of the financial requisition offi- 
 cer, American forces in France, in con- 
 sideration for which France has 
 agreed to give and has given America 
 credit in French francs at an exchange 
 
 En consequence, etant donne ce qui 
 precede et etant donne les autres con- 
 siderations ci-incluses, il est decide d'un 
 commun accord ce qui suit entre les 
 dites parties: 
 
 Article I. Le montant total des cre- 
 ances de la France sur le dit Departe- 
 ment de Guerre des Etats-Unis se 
 montent a un millard neuf cents ciii- 
 quante sept millions sept cent cin- 
 quante neuf mille cent treize fran^g^et 
 quarante et un centimes (frs. 1,957,- 
 759,113.41 plus cinq millions quatre 
 cent vingt-deux mille sept cent six dol- 
 lars et quinze cents ($5,422,706.15). 
 
 Article II. Le montant total des 
 creances de I'Amerique pour le dit 
 Departement de la Guerre sur la 
 France se montent a quatre soixante- 
 neuf millions cent quarante mille 
 quatre-vingt cinq francs et quatre- 
 vingt neuf centimes (frs. 469,140,- 
 085.89) plus vingt et un millions huit 
 cent cinquante neuf mille six cent 
 soixante dollars et vingt cents ($21,- 
 859,660.20). 
 
 Article III. Toutes les factures, 
 comptes. reclamations et demandes, de 
 quelque nature que ce soit, en ce qui 
 concerne les transactions mention- 
 nees ci-dessus entre le dit Departe- 
 ment de la Guerre des Etats-Unis, et 
 la Republique Francaise et afferentes a 
 des livraisons effectuees ou a, des serv- 
 ices rendus en Europe anterieurement 
 au 20 Aout 1919 et qui ne sont pas 
 centenues dans ce "Reglement Euro- 
 peen" seront considerees comme fore- 
 closes definitivement et ne pourront 
 plus etre representees par I'une des 
 parties contre I'autre. 
 
 Article IV. En autre il est convenu 
 ce qui suit entre les parties : 
 
 {a) Dans ce " Reglement Euro- 
 peen," I'Amerique a convenu de trans- 
 ferer et de payer a la France, en 
 especes, la somme de six millions 
 neuf cent quatre vingt six mille cinq 
 cents francs suisses quarante-trois 
 ( 6,986. 5(K).43) deposse maintenant a 
 Berne (Suisse) au credit du "Finan- 
 cial Requisition Officer " des Forces 
 Americaines en France, pour lequel la 
 
168 
 
 UNITED STATES LIQUIDATION COMMISSION. 
 
 value of 1.1625; that is to say, in the 
 sum of 8,121,806.75 French francs. 
 
 France has agreed and does hereby 
 agree that in the event the balance in 
 the general settlement now being nego- 
 tiated between France and America 
 should be in favor of America, then 
 in such event the said sum of 8,- 
 121,806.75 French francs will be 
 promptly repaid to America in cash. 
 
 (by\ America heretofore seized, as a 
 prize of war, 2,614.30 metric tons of 
 coal and thereafter delivered same to 
 France, charging same against France 
 in the coal exchange accoimt in the 
 sum of tifty-four thousand seven hun- 
 dred fifty-three dollars ten cents ($54,- 
 753.10). A question has arisen as to 
 whether or not this coal was enemy 
 war material, and this question has 
 been referred to the Franco-Beige 
 Commission de Recuperation. Should 
 this commission decide that said coal 
 was not enemy war material, then in 
 such event America agrees to pay 
 France the amount charged for the 
 said coal, namely, $54,753.10. 
 
 (c) Certain aircraft material of the 
 value of sixty-four thousand four hun- 
 dred eighteen francs nine centimes 
 (frs. 64,418.09) furnished by the 
 " Tardieu Mission " of the French 
 Government to the said War Depart- 
 ment has been by the said War De- 
 partment returned to the French Com- 
 mission and is now held by it in 
 America as the property of the French 
 Government. Without obligating it- 
 self to purchase same. America agrees 
 to cause an investigation to be 
 promptly made and if it finds it can 
 use the said material to advantage, it 
 will take delivery of and pay for same 
 at a price to be fixed by agreement be- 
 tween the two Governments. 
 
 France a accepte de donner et a ouvert 
 a I'Amerique un credit en francs fran- 
 caise au taux du change de 1.1625 
 d'est-a-fire un montant de huit millions 
 cent vingt et un mille huit cent six 
 francs francais soixante quinze, 
 (8.121,806.75). 
 
 La France a accepte et accepte par la 
 presente, dans le cas ou la balance du 
 reglement general en cours de negocia- 
 tion entre la France et I'Amerique se- 
 rait en favour de I'Amerique, que, 
 (hnis ce cas. la dite somme de 
 8,121,806.75 francs francais serait rem- 
 boursees sans delai a I'Amerique en 
 especes. 
 
 (h) I'Amerique a saisi comme prises 
 de guerre, 2,614,300 tonnes metriques 
 de charbon. qu'elle a, par la suite, de- 
 livrees a la France. Ce charbon a ete 
 porte au debit de la France dans le 
 compte d'echange des charbons pour 
 la somme de cinquante quatre mille 
 sept cent cinquante trois dollars dix 
 cents ($54,753.10). Une question s'est 
 elevee sur le point de savoir si ce 
 charbon etait ou non du materiel en- 
 nemi de guerre et cette question a ete 
 soumise a la Commission de Recupera- 
 tion Franco-Beige. Si la Commission 
 decidait que le dit charbon n'etait pas 
 du materiel ennemi de guerre, dans ce 
 cas I'Amerique accepterait de payer a 
 la France la somme qui lui a ete debi- 
 tee pour ce charbon, c'est-a-dire : 
 54,753.10 dollars. 
 
 (c) Un certain nombre de materiel 
 d'aviation d'une valeur de soixante 
 quatre mille quatre cent dix huit frs. 
 neuf (frs. 64,418.09), fourni par la 
 Mission Tardieu du Gouvernement 
 Francais au dit Departement de la 
 Guerre, a ete rendu par ce dit Departe- 
 ment de la Guerre a la Mission Fran- 
 caise et est maintenant gard6 par 
 cette derniere en Amerique comme pro- 
 priete du Gouvernement Francais. 
 Sans prendre I'obligation de acheter 
 ce materiel, I'Amerique accept de pro- 
 voquer sans delai des etudes dans le 
 but de savoir si ce materiel pent etre 
 utilis^e avantageusement par elle et 
 dans ce cas elle en prendra possession 
 et elle la paiera a un prix a etablir 
 
UNITED STATES LIQUIDATION COMMISSION. 
 
 169 
 
 (f7) Under the contract entered into 
 between America and France dated 
 August 28, 1919, dealing with artillery 
 and ammunition, France agreed to 
 supply America with materials as fol- 
 lows : 
 
 1. 944 75-m/m gun materials, model 
 1897, with limbers. 
 
 2. 700 155-m/m howitzer materials, 
 model 1917, Schneider design, with 
 limbers. 
 
 3. 198 155-m/m G. P. F. materials, 
 with limbers. 
 
 4. Collection of additional parts, as 
 in said contract more specifically de- 
 scribed. 
 
 The amount due by America under 
 the terms of the said contract of Au- 
 gust 28, 1919, has been taken into ac- 
 count in computing the amounts to the 
 credit of France mentioned in Article 
 I hereof The delivery of materials 
 which France contracted to deliver 
 under the terms of said contract has 
 not yet been completed, and nothing 
 herein contained shall release France 
 from its obligation to promptly com- 
 plete such deliveries. 
 
 In witness whereof on the day and 
 year first above written, this contract 
 has been executed in four parts, each 
 having the full force and effect of an 
 original, by the United States of 
 America, acting through the United 
 States Liquidation Commission — War 
 Department, Edwin B. Parker, chair- 
 man, of the one part, and by the Re- 
 public of France, acting through the 
 Controleur de TAdministration de 
 I'Armee. Edouard Boulanger, acting 
 under reserve of the approval of the 
 interested ministers, of the other part. 
 
 United States of America, 
 By Edwin B. Parker, 
 
 Chairman, United States 
 Liquidation Commission — 
 War Department. 
 Republic of France, 
 By L. Boulanger, 
 Controleur de V Administration 
 de VArmee. 
 
 aprds entente entre les deux Gouverne- 
 ments. 
 
 id) Aux termes du contrat etabli 
 entre I'Amerique et la France, en dare 
 du 28 Aout 1919, au sujet de I'Artil- 
 lerie et des Munitions, la France s'est 
 engagee a fournir a I'Amerique les ma- 
 teriels suivantes: 
 
 1. 944 materiel de 75, modele 1897 
 avec avant-train. 
 
 2. 700 materiel de 155 court, module 
 1917 Schneider avec avant-train. 
 
 3. 198 materiel de 155 G. P. F. avec 
 avant-train. 
 
 4. Collections de pieces de rechange 
 comme il est indique en detail dans le 
 contrat susviee. 
 
 La somme due par I'Amerique aux 
 termes du dit Contrat du 28 Aout 1919 
 a ete incluse dans I'etablissement an 
 montant du credit de la France fi- 
 gurant a I'Article I ci-dessus. Les ma- 
 t^riels que la France s'est engagee a 
 fournir aux termes du dit Contrat n'ont 
 pas encore ete fournis entierement ; 11 
 est entendue que le present contrat 
 n'a pas pour effet de decharger la 
 France de son obligation de satisfaire 
 rapidement a ces cessions. 
 
 En foi de quoi, le jour et I'annee 
 precites, le present contrat a ete redige 
 en quatre exemplaires, chacun d'eux 
 ayant la meme valeur et effet qu'un 
 original, par les Etats-Unis d'Amerique, 
 representes par la Commission de 
 Liquidation des Etats-Unis, Departe- 
 ment de la Guerre, Edwin B. Parker, 
 president, d'une part, et par la Re- 
 publique Francaise, representee par M. 
 le Controleur de lere Classe de I'Ad- 
 ministration de I'Armee Boulanger, 
 agissant sous reserve de 1' approbation 
 des Ministres interesses, d'autre part. 
 Etats-Unis D'Amerique, 
 
 Par Edwin B. Parker, 
 President, Commission de Liquidation 
 
 des Etats-Unis, Department de la 
 
 Guerre. 
 
 Republique Francaise, 
 Par L. Boulanger, 
 Controleur de V Administration de 
 
 VArmee. 
 
170 
 
 UNITED STATES LIQUIDATION COMMISSION. 
 
 
 
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172 
 
 UNITED STATES LIQUIDATION COMMISSION. 
 
 APPENDIX XXXII. 
 
 Contract for the General Setti^m 
 America and Republic of 
 
 Til is contract, entered into this 25th 
 *lay of November, A. D. 1919, by and 
 between the United States of America 
 (hereinafter called "America") act- 
 ins through the United States Liquida- 
 tion Commission — War Department, 
 Edwin B. Parker, chairman, on the one 
 part, and the Republic of France (here- 
 inafter called "France"), acting 
 through le Sous-Secretaire d'Etat aux 
 Finances, Paul INIorel, on the other part, 
 witnesseth : 
 
 That irhereas, between the 6th day 
 of April, 1917, and the 20th day of 
 August, 1919 (hereinafter designated 
 "War period"), the War Department 
 of the United States of America and 
 the American Expeditionary Forces, 
 on the one part (hereinafter called 
 "War Department") and the Republic 
 of France, on the other part, had nu- 
 merous transactions between each other 
 connected with or incidental to the 
 couduct of the war in the prosecution 
 of which the parties were associated; 
 and 
 
 Whereas America, for the said War 
 Department, and France desire to make 
 a full, final, and complete settlement 
 in respect to the transactions afore- 
 said of all bills, accounts, claims, obli- 
 Liations, demands, rights, and causes of 
 action of every nature whatsoever, 
 whether growing out of the delivery 
 of or contracts for the delivery of ma- 
 terial, supplies, or equipment, or for 
 services rendered or contracted to be 
 rendered, or for the occupation and 
 use of all public properties of France 
 and all damages thereto, initiated or 
 otherwise arising or accruing during 
 the said war period, said settlement to 
 be hereinafter designated as " General 
 settlement " : and 
 
 Whereas the parties hereto, in ar- 
 riving at such general settlement, have 
 
 ent Between the I'nited States of 
 France, November 25, 1919. 
 
 Ce contrat redig^ le 25 Novembre 
 1919 a ete etabli par et entre le Gou- 
 vernement des Etats-Unis (appel^ ci- 
 apres Amerique) represente par la 
 Commission de Liquidation des Etats- 
 Unis du D6partement de la Guerre, 
 Edwin B. Parker, President, d'une 
 part; et la Republique Frangaise (ap- 
 pel4e ci-apr^s France) representee par 
 M. le Sous-Secretaire d'Etat aux Fi- 
 nances, I'aul :Morel, d'autre part ; 
 
 Etant donne qu'entre le 6 Avril 1917 
 et le 20 Aoilt 1919, (denomme ci-apr6s 
 "Periode de Guerre"), le Departement 
 de la Guerre des Etats-Unis d'Ameri- 
 que, ainsi que les Forces Exp6dition- 
 naires Am^ricaines (denomm^s ci- 
 apres "Departement de la Guerre") 
 d'une part, et la Republique Frangaise, 
 d'autre part, ont eu entre eux de nom- 
 l>revL'>;es transactions liees plus ou moins 
 ineidentment k la conduite de la Guerre 
 pour la poursuite de laquelle les deux 
 parties s'^taient associ^es ; et 
 
 p]tant donne que I'Amerique, pour le 
 dit Departement de la Guerre, et la 
 France desirent etablir un r^glement 
 entier, detinitif et complet, en raison 
 des transactions mentionn#es ci-dessus,- 
 de toutes les factures, comptes, recla- 
 mations, obligations, demandes, droits 
 et motifs d'actions' de quelle que na- 
 ture que ce soit, qui proviennent de la 
 livraison ou de contrats pour la livrai- 
 son du materiel, approvisionnements ou 
 ^luipements, ou pour services rendus 
 ou devant etre rendus suivant contrat, 
 ou pour Toccupation et I'usage de 
 toutes les propri^t^s publiques du do- 
 ma ine de I'Etat Frangais et tons 
 dommages qui pourraient y avoir 6te 
 faits ou engendr6s, ou d'une autre 
 manidre s'elevant ou s'accumulant 
 pendant la dite Periode de Guerre, le 
 dit r^glement devant etre designe sous 
 le nom de "Reglement G6n6ral" ; et 
 
 Etant donn^queles parties ci-dessus 
 designees en arrivant a ce rdglement 
 
UNITED STATES LIQUIDATION COMMISSION. 
 
 173 
 
 agreed that in respect to the trans- 
 actions aforesaid the total of all franc 
 credits due each party shows a net 
 balance due France of one billion four 
 hundred eighty-eight million six hun- 
 dred nineteen thousand and twenty- 
 seven francs and tiftj'^two centimes 
 (frs. 1,488,619,027.52), and the total 
 of all dollar credits due each party 
 shows M net balance due America of one 
 hundred seventy-seven million one 
 hundred forty-nine thousand eight 
 hundred and sixty-six and 86/100 
 ( $177,149,866.86 ) dollars ; 
 
 Now, therefore, in consideration of 
 the premises and of the agreement on 
 the part of America to pay France the 
 said sum of one billion four hundred 
 eighty-eight million six hundred and 
 uineteen thousand and twenfy-seven 
 francs and fifty-two centimes (frs. 
 1,488,619,027.52) and the agreement on 
 the part of France to pay America the 
 said sum of one hundred seventy-seven 
 million one hundred forty-nine thous- 
 and eight hundred sixty-six and 86/100 
 ($177,149,866.86) dollars, it is mutu- 
 ally agreed between the parties hereto 
 afs follows : 
 
 Article I. The Republic of France 
 does hereby fully, completely, and in 
 all things, release and discharge the 
 United States of America, and the 
 United States of America does hereby 
 fully, completely, and in all things, re- 
 lease and discharge the Republic of 
 France in respect of the transactions 
 aforesaid, from all bills, accounts, 
 claims, obligations, demands, rights, 
 causes of action, suits, and contro- 
 versies of every nature whatsoever 
 which either party now has against the 
 other, or which may hereafter arise, 
 whether by reason of or in anywise 
 incident to or growing out of the de- 
 livery or contract for the delivery of 
 materials, supplies or equipment, or 
 for services rendered, or contracted to 
 be rendered, or for the occupation and 
 use of all public properties of France 
 and all damages thereto or otherwise 
 
 general out decide qu'en raison des 
 transactions designees plus haut la 
 somme de tons les credits en Francs 
 dus a chaque partie fait ressortir une 
 balance nette en faveur de la France 
 ile un milliard quatre cents quatre- 
 vingt-huit million six cent dix-neuf 
 mille vingt-sept francs et cinquante- 
 deux centimes (frs, 1,488,619,027.52) • 
 et la somme de tons les credits en 
 dollars dus a chaque partie f alt rer-"~ 
 sortir une balance nette en faveur de 
 I'Amerique de cent soixante-dix-sept 
 million cent quarante-neuf mille huit 
 cent soixante-six dollars et quatre- 
 vingt-six cents (dollars 177,149,866.86) ; 
 
 En consequence, etant donne ce qui 
 precede, et etant donne I'acceptation de 
 la part de I'Amerique de payer a la 
 France la dite somme de un milliard 
 quatre cents quatre-vingt-huit million 
 six cent dix-neuf mille, vingt-sept 
 francs et cinquante-deux centimes (frs. 
 1,488,619.027.52) et I'acceptation de la 
 P^rance de payer a TAmerique la dite 
 somme de cent soixante-dix-sept mil- 
 lion cent quarante-neuf mille huit cent 
 soixante-six dollars et quatre-vingt-six 
 cents (dollars 177,149,866.86), il est 
 decide d'un commun accord ce qui suit 
 entre les dites parties : 
 
 Article I. Par ces presentes, la R4- 
 publique Francaise libere et decharge 
 tout a fait, completement et en toutes 
 manieres les Etats-Unis d'Amerique et 
 les Etats-Unis d'Amerique liberent, de- 
 chargent tout a fait, completement et 
 en toutes manieres la Republique Fran- 
 caise, en raison des transactions men- 
 tionnees ci-dessus, de toutes les fac- 
 tures, coinptes, reclamations, obliga- 
 tions, demandes, droits, motifs d'ac- 
 tions, poursuites et controverses de 
 toute nature, aussi bien ceux que I'une 
 et I'autre partie a I'heure actuelle a 
 faire valoir I'une contre I'autre, que 
 ceux qui pen vent s'elever par la suite 
 soit en raison de, soit touchant de 
 quelle que maniere que ce soit S, soit 
 provenant de la livraison on de con- 
 trats pour la livraison de materiel, ap- 
 provisionnements ou equipements, ou 
 pour services rendus ou devant etre 
 
174 
 
 UNITED STATES LIQUIDATION COMMISSION. 
 
 initiatecT, arising or accruing during 
 the said war period between tlie said 
 War Department on the one part and 
 the Republic of France on the other 
 part. 
 
 Article II. Notliing hereinbefore 
 contained shall be held or construed to 
 in anywise annul, alter, modify, or 
 alfect the obligations of France lield 
 by America or the obligations of either 
 party hereto arising out of the follow 
 ing special contracts or agreements 
 namely : 
 
 (a) TJie contract between Americo 
 and France, dated August 1st, 1919, 
 whereby America sold and France pur- 
 ( lulled certain properties therein re- 
 ferred to, France agreeing to pay 
 therefor the sum of four hundred rail- 
 lion ($400,000,000) dollars with inter- 
 est thereon, at the time and under the 
 terms mentioned therein ; 
 
 (h) The contract between America 
 and France for the settlement of rail- 
 road transportation and other claims, 
 dated October 1st, 1919, in which 
 America agrees to pay France the sum 
 of four hundred thirty-four million nine 
 hundreil eighty-five thousand three hun- 
 dred eight-nine and 73/100 (frs. 434,- 
 985,389.73) francs; 
 
 (c) The contract between America 
 and France for the, settlement of all 
 port dues and similar claims, dated 
 October 1st, 1919, in which America 
 agrees to pay France the sum of three 
 millioh (frs. 3,000.000) francs; 
 
 {(I) All contracts, agreements or ar- 
 rangements entered into between Amer- 
 ica and France for or in connection 
 with sales made by America to France 
 in the United States since November 
 11th, 1918. 
 
 rendus pur suite de contrats ou pour 
 Toccupation et I'usage de toutes pro- 
 prietes publiques du domaine de TEtat 
 Francaise et tons dommages qui pour- 
 raient y avoir ete faits ou engendrSs 
 ou d'lme autre mani^re s'elevant ou 
 s'accumulant durant la dite Periode 
 de Guerre entre le dit Departement de 
 la Guerre d'une part, et ia Uepubliquc 
 Francaise d'autre part. 
 
 Article II. Kien de ce qui est con- 
 tenu ci-dessus ne doit etre retenu ou 
 interprets de facon ^ annuler, alt^rer 
 ou modifier ou affecter en quelle que 
 maniere que ce soit les obligations de 
 la France envers TAmeriqiie ou les 
 obligations de Tune et I'autre partie ci- 
 contre provenant des contrats ou ac- 
 cords speciaux qui suivent, (i savoir : 
 
 (a) Le Contrat entre I'Amerique et la 
 France, en flate du I^"" Aout 1919, par 
 l^piel I'Amerique a vendu et la France 
 a achet'e certaines propri^tSs aux- 
 (luelles il est fait allusion dans le Con- 
 trat en question, la France consentant 
 a payer par la meme la somme de 
 quatre cents millions de dollars avec 
 rint^ret a I'epoque et sous les c<mdi- 
 tions mentionn^s dans le Contrat en 
 question. 
 
 b) Le Contrat entre I'Amerique et la 
 France pour le reglement des trans- 
 ports par chemin de fer et d'autres 
 reclamations, en date du l*' Octobre 
 1919. par lequel I'Amerique consent k 
 payer k la France la soinme de quatre 
 cent trente quatre millions neuf cent 
 quatre-vingt cinq mille trois cent 
 quatre-vingt neuf francs et 73 centimes 
 (4.34,985,389.73) frs. 
 
 c) Le Contrat entre I'Amerique et la 
 France pour le reglement de toutes les 
 taxes de p^age et des reclamations de 
 meme nature, en date du 1^"" Octobre 
 1919, par lequel I'Amerique consent k 
 payer a la France la somme de trois 
 millions de francs (3,000,000.00) frs. 
 
 (/) Tons contrats, accords ou ententes 
 passes entre I'Amerique et la France 
 pour ou relativement k des ventes 
 faites par I'Amerique k la France aux 
 Etats-Unis depuis le 11 Novembre 
 1918. 
 
UNITED STATES LIQUIDATION COMMISSION. 
 
 175 
 
 Article III. This contract shall not 
 operate as a release or modification of 
 or in any wise affect whatever claim 
 France may now have against America 
 uTowing out of services rendered by 
 P^rance to America during the war 
 Iteriod in connection with the ocean 
 transportation of American troops. 
 
 Article IV. This contract shall not 
 be construed to relate to or in any wise 
 affect claims or demands howsoever 
 arising between the nationals of either 
 country, on the one part, and the 
 parties hereto, or either of them, or 
 their nationals, on the other part. 
 Neither shall it in any wise affect 
 transactions pertaining to any depart- 
 ment or departments, agency or agen- 
 cies of the Government of the United 
 States of America Other than the said 
 War Department and all of the agen- 
 cies of the said War Department and 
 the American Army and all of its 
 branches and agencies. 
 
 In witness whereof, on the day and 
 year first above written, this contract 
 has been executed in four parts, each 
 having the full force and effect of an 
 original, by the United States of Amer- 
 ica, acting through the United States 
 Liquidation Commission — War Depart- 
 ment, Edwin B. Parker, chairman, and 
 by the Republic of France, acting 
 through le Sous-Secretaire d'Etat aux 
 Finances, Paul Morel. 
 
 United States of Ameeica, 
 By Edwin B. Paeker, 
 Chairman, United States Liquidation 
 Commission — War Department. 
 
 Republic of Feance, 
 By P. MoEEL, 
 Le Sous-Secretaire d'Etat aux Finan- 
 ces. 
 
 Article III. Ce Contrat n'aura pas 
 pouvoir d'annuler, modifier ou affecter 
 de quelle que maniere que ce soit toutes 
 reclamations que la France pourrait 
 avoir k I'heure actuelle a faire valoir 
 centre I'Amerique et provenant des 
 services rendus par la France k I'Ame- 
 rique pendant la P§riode de Guerre et 
 ayant trait aux transports des troupes 
 americaines sur FOcean. 
 
 Article IV. Ce Contrat ne doit eti*e 
 interprete comnie se rapportant d'une 
 maniere quelconque ou affectant de 
 quelle que manidre que ce soit les re- 
 clamations ou demandes de toute 
 nature, s'61evant entre les nationaux 
 de I'un et Tautre Pays, d'une part, et 
 les parties ci-incluses ou I'une d'elles, 
 ou leurs Nationaux, d'autre part. Ce 
 Contrat concerne uniquement le D6- 
 partement de la Guerre et toutes les 
 Agences du dit Departement de la 
 Guerre, I'Arm^e Am§ricane et toutes ses 
 branches et Agences, mais ne concerne 
 nullement un autre ou plusieurs autres 
 Departements du Gouvernement des 
 Etats-Unis d'Am^rique ainsi que leur 
 Agence et leurs Agences. 
 
 En foi de quoi, le jour et I'ann^e au 
 debut precit§s, ce Contrat a ete redig^ 
 en quatre exemplaires, chacun d'eux 
 ayant la meme valeur et effet qu'un 
 original, par les Etats-Unis d'Ameri- 
 que, represent^s par la Commission de 
 Liquidation des Etats-Unis, Departe- 
 ment de la Guerre, Edwin B. Parker, 
 President, et~ par la Republique Fran- 
 caise, representee par M. le Sous-Se- 
 cretaire d'Etat aux Finances, Paul 
 Morel. 
 
 Etats-Unis d'Ameeique, 
 Par Edwin B, Paeker, 
 
 President, Commission de 
 
 Liquidation des Etats-Unis — 
 
 Departm,e)vt de la Guerre. 
 
 Republique Feancaise, 
 
 Par P. MoEEL, 
 
 Sous-Secreto.ire d'Etat aux Finances. 
 
176 
 
 UNITED STATES LIQUIDATION COMMISSION. 
 
 
 
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 UNITED STATES LIQUIDATION COMMISSION. 
 
 
 
 
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UNITED STATES LIQUIDATION COMMISSION. 
 
 179 
 
 APPENDIX XXXIII. 
 
 French Contract of Indemnity for Torts, Workmen's Compensation, Rents, 
 
 AND Requisitions. 
 
 This iontnwt, entered into this first 
 day of December, A. D. 1919, by and 
 between the United States of America 
 (hereinafter called "America"), act- 
 inj^ through the United States Liquida- 
 tion Commission — War Department, 
 Edwin B. Parlver, chairman, of the one 
 part, and tlie Republic of France 
 (hereinafter called "France"), acting 
 thi'ough Edouard Ignace, le Sous-Sec- 
 retaire d'Etat de la Justice Militaire 
 au Minist^re de la Guerre, of the other 
 part, witnesseth: 
 
 That whereas, between the 6th day 
 of April, 1917, and the 31st day of 
 December, 1919 (hereinafter desig- 
 nated "War period") the War De- 
 partment of the United States and 
 members of its military forces, in- 
 cluding the American Expeditionary 
 Forces and the American Forces 
 in France (all hereinafter referred to 
 as "American Military Forces") 
 have, as incidental to or as connected 
 with the conduct of the war in the 
 prosecution of which the parties here- 
 to were associated, occupied and used 
 real property, appropriated and used 
 personal property, damaged real and 
 personal property, and damaged indi- 
 viduals resulting in their injury or 
 death ; all of which said occupancies, 
 appropriations, uses, and damages oc- 
 curred or shall occur in France during 
 the said War period ; and 
 
 Whereas America has maintained 
 representatives in France for more 
 than a year after the signing of the 
 Armistice for the purpose of receiving 
 investigating, and settling all claims 
 filed or lodged against it ; and 
 
 Whereas, the work of these repre- 
 sentatives has been practically com- 
 pleted in so far as the receipt, inves- 
 tigation, and consideration of all such 
 claims is concerned ; and 
 
 Ce contrat r^dige le 1^' Decembre 1919 
 a 4t6 6tabli par et entre le Gouverne- 
 ment des Etats-Unis (appel6 ci-apr§s 
 "Amerique") reprgsente par la Com- 
 mission de Liquidation des Etats-Unis 
 du D§partement de la Guerre, Edwin 
 B. Parker, president, d'une part; et-la^ 
 Republique Francaise, (appel4e ci- 
 apr^s "France") representee par M. 
 Edouard Ignace, Sous - Secretaire 
 d'Etat de la Justice Militaire au Mi- 
 nistere de la Guerre, d'autre part; 
 
 Etant donne qu'entre le 6 Avril 1917 
 et le 31 D4cembre 1919 (d^nomme ci- 
 apr^s " Periode de Guerre " ) le D6- 
 partement de la Guerre des Etats-Unis 
 FAmerique et le personnel faisant 
 partie de ses Forces Militaires, y com- 
 pris les Forces ExpSditionnaires Ame- 
 ricaines et les Forces Am^ricaines en 
 France (tous ci-apr^s design^s sous le 
 nom de " Forces Militaires Am6ri- 
 caines " ) ont, d'une facon plus ou 
 moins directement lies k la conduite 
 de la guerre, pour la poursuite de la- 
 quelle les deux parties s'etaient asso- 
 ciees, occupe et utilise des immeubles,. 
 se sont approprie et ont utilise des 
 biens mobiliers, ont deteriore des im- 
 meubles et des biens mobiliers et ont 
 porte prejudice ^ des individus en leur 
 causant soit des blessnres, soit la 
 mort ; et etant donne que tous les dits 
 occupations, appropriations, utilisa- 
 ti(»ns et donnnages ont eus lieu ou 
 auront lieu en France pendant la dite 
 periode de Guerre; et 
 
 Etant donne que I'Amerique a main- 
 tenu des representants en France 
 pendant plus d'une annee apr^s la 
 signature de I'Armistice dans le but de 
 reeevoir, d'enqueter et de regler toutes 
 les reclamations presentees ou deposees 
 contre elle ; et 
 
 Etant donne que le travail de ces 
 representants a ete pratiquement com- 
 plete autant que la reception, I'enquete 
 et toutes considerations relatives k ces 
 reclamations I'ont permis ; et 
 
180 
 
 UNITED STATES LIQUIDATION COMMISSION. 
 
 Whereas France has agreed, for the 
 t'onsiderations herein set forth, to 
 ■substitute itself for America in refer- 
 ence to, and guarantees the latter 
 -against, all unsettled claims, and also 
 those concerning which offers of set- 
 tlement have not been accepted, aris- 
 ing or accruing during the War period, 
 save those specifically excepted in 
 Article II hereof; 
 
 Now, therefore, in consideration of 
 the premises, it is mutually agreed be- 
 tween the parties hereto as follows : 
 
 Article I. France hereby substitutes 
 itself for America in reference to, and 
 guarantees the latter against, all 
 claims, demands, obligations, rights, 
 actions, suits, and controversies of 
 every nature, arising in France during 
 the said war period, which any inhabi- 
 tant or any person subject to the sov- 
 ereignty of France, or any organiza- 
 tion, association or corporation, com- 
 mune or department of France may 
 now have or which may hereafter ac- 
 crue, for damage to, use or loss of 
 property, or injuries to or death of 
 persons, caused by or reisulting from 
 acts or omissions of members of the 
 American Military Forces, or of any 
 one connected therewith (not includ- 
 ing members of the American welfare 
 organizations) during the said war 
 period, particularly the following: 
 
 (a) All claims which America is 
 authorized to pay to the inhabitants of 
 France under an act of America's Con- 
 gress approved April 18, 1918, entitled 
 ■"An act to give indenmit.v for damages 
 caused by American forces abroad." 
 
 (h) All claims, whether caused by 
 acts or omissions of members of the 
 American Military Forces, or any 
 other persons, arising from injury to 
 or death of civilian employees and la- 
 borers of America, excepting claims of 
 the nationals of America (workmen's 
 compensation cases). 
 
 (c) All claims for the occupation 
 and use of real property, damages 
 
 Etant donne que la France a con- 
 senti pour les considerations men- 
 tionnees ci-dessous A se substituer et 
 par suite a garantir TAm^rique contre 
 toutes reclamations non reglees ou dont 
 les offres de reglement n'auront pas 
 6te accept^es. s'6levant ou s'accumu- 
 lant durant la p6riode de Guerre, k 
 I'exception de eel les mention6es a 
 I'Article II suivant ; 
 
 En consequence, §tant donn§ ce qui 
 precede, il est decide d'un comnnui ac- 
 cord ce qui suit entre les dites par- 
 ties. 
 
 Article I. La France se substitue 
 par les presentes a I'Amerique et la 
 garantit contre toutes rechwnations, 
 demandes. obligations, droits, actions, 
 poursuites et coutroverses de toute 
 nature ^l^v^s en Frahcie pendant la 
 dite i>§rio<le de (4uerre, que tout habi- 
 tant ou tout ressortissant iPrangais ou 
 toute autre personne morale, commune 
 ou d^partement de France pent encore 
 avoir a presenter ou qui pourrait par 
 la suite ^tre pr^sent# pour dommages, 
 usage ou perte de biens ; ou donniiages 
 aux personnes par suite de blessures 
 ou de<es causes par, on resultant, 
 d'actes ou negligences «les Membres des 
 Forces Militaires Americaines ou qui- 
 conque y a et6 rattache (A I'exclusion 
 des Membres des CEuvres de Bien- 
 faisance Americaines) pendant la dite 
 "p^riode de Guerre, c'est k dire: 
 
 (a) Toutes reclamations que I'Ame- 
 rique est autoris^s 5\ payer aux habi- 
 tants de France par I'Acte du Congres 
 Americain approuv^ le 18 Avril 1918 
 et intitule "Acte pour donner une in- 
 denmite pour donunages causes par les 
 Forces Aniericaines A TExt^rieur." 
 
 {f}) Toutes reclamations qu'elles 
 previennent d'acte ou de negligence des 
 Membres des Forces Militaires Ameri- 
 caines ou toute autre per.sonne et ayant 
 pour causes les blessures ou la mort 
 occasionees a des employes et ouvriers 
 civils de I'Armee Americaine k I'excep- 
 tion des reclamations des nationaux 
 Americains (Accidents du Travail). 
 
 (r) Toutes reclamations pour occu- 
 pation et usage de biens immobiliers. 
 
UNITED STATES LIQUIDATION COMMISSION. 
 
 181 
 
 tliereto, and restoration expenses, re- 
 sulting from the occupation in any 
 manner whatsoever of said real prop- 
 erty by the American Military Forces. 
 
 (d) All claims resulting from requi- 
 sitions, formal or informal, for the 
 appropriations, use, damage, or de- 
 struction of personal property. 
 
 Article II. It is expressly under- 
 stood and agreed, hoicever, that the 
 following claims are excepted from the 
 operation of this agreement, and that 
 France does not assume or agree to 
 pay the following : 
 
 (a) All claims against America aris- 
 ing from breach of contracts for the 
 manufacture or furnishing of supplies, 
 materials, or equipments, or for the 
 rendition of services ; except, how^ever, 
 all leases and contracts for the occupa- 
 tion of property. 
 
 (h) All claims cognizable under the 
 general Admiralty law, that is to say, 
 claims by or against vessels of Amer- 
 ica. 
 
 Article III. America agrees to pay, 
 in cash, the sum of twelve million (frs. 
 12,000,000) francs (hereinafter desig- 
 nated " Minimum payment ") . If upon 
 the 31st day of December, 1923, the 
 aggregate of all payments made by 
 France to claimants on account of the 
 claims assumed by it exceeds said min- 
 imum payment, then in such event 
 America agrees, on demand, to then 
 pay to France such excess, provided, 
 however, that such additional payment 
 by America shall in no event exceed 
 the sum of six million (frs. 6,000,000) 
 francs. 
 
 Article IV. It is further agreed that 
 the 12,(K)0.000 francs mentioned in Art. 
 Ill hereof as the minimum payment 
 will be added to the indebtedness in 
 francs which America has acknowl- 
 edged as due to France by contract 
 dated 'November 25th, 1919. The 
 method of payment of said 12,000,000 
 francs will be arranged at the same 
 time as the method of payment of the 
 sums mentionetl in said contract of No- 
 
 donnnages y relatifs et depenses de 
 lemise en etat quand il y a eu occupa- 
 tion par les Forces Militaires Ameri- 
 caines k quelque titre que ce soit. 
 
 id) Toutes reclamations pour re- 
 quisitions (regulieres ou non) pour ap- 
 propriation, usage, d^gats ou destruc- 
 tion des biens mobiliers. 
 
 Article II. II est expressement it- 
 connu et convemi, cependant, que-leti^ 
 reclamations suivantes sont except^es 
 des clauses de ce contrat et que la 
 France ne prend pas en charge et ne 
 consent pas k payer ce qui suit ; 
 
 (a) Toutes reclamations contre 
 TAmerique qui sont la consequence des 
 ruptures de contrat pour la fabrication 
 ou la fourniture d'approvisionnements, 
 materiel ou equipement ou pour services 
 rendus, et k I'exclusion des baux et 
 contrats de location. 
 
 ( 6 ) Toutes les reclamations qui. 
 tombent sous le coup de Loi G& 
 nerale d'Amiraut6, c'est k dire, les: 
 reclamations pour ou contre les vais- 
 seaux de I'Amerique. 
 
 Article III. L'Amerique, acOepte de 
 payer en especes, la somme de douze 
 millions francs (frs. 12,000,000) (ci- 
 apres designee comme "Paiement mini- 
 mum"). Si le 31 Decembre 1923 le to- 
 tal de tons les paiements affectues par 
 la France aux reclamants sur les recla- 
 mations prises en oliarge par elle depas- 
 sait le paiement minimum sus-indique» 
 dans ce cas I'Amerique accepte de payer 
 a la France sur sa demande les sommes 
 en excedent. Sous reserve, cependant,. 
 que ce paiement additionel fait par 
 I'Amerique ne devra en aucun cas d^- 
 passer la somme de six millions 'francs 
 (frs. 6,000,000). 
 
 Article IV. II est de plus entendu 
 que les douze millions de francs in- 
 diques comme prix minimum dans I'Ar- 
 ticle ci-dessus seront ajoutes a la 
 dette en francs que I'Amerique a re- 
 connu avoir contrate vis k vis de la 
 France par le contrat du 25 Novembre 
 1919. Lo modalites de paiement de 
 ces douze millions de francs seront 
 done reglees en meme temps que les 
 modalites de paiement des sommes in- 
 
182 
 
 UNITED STATES LIQUIDATION COMMISSION. 
 
 vember 25tb, 1919. This method and 
 the rate of exchange for the conversion 
 of francs into dollars, and dollars into 
 francs, will be made the subject of an 
 airreement to be entered into in the 
 future, following the negotiations 
 which are now in progress on this sub- 
 ject between the representatives of the 
 two Governments. 
 
 Article V. America agrees to leave 
 in France until December 31, 1923, ac- 
 4?eKsible at fill times to the authorized 
 representatives of France, all records, 
 reports, and corresijondence of every 
 jjature whatsoever pertaining to claims 
 assumed by France hereunder, and 
 claims of like nature which have here- 
 tofore been settled and disposed of by 
 America, for the use of France in con- 
 sidering and dealing with all pending 
 claims or claims that may hereafter be 
 presented. 
 
 In witness whereof, on the day and 
 year first above written, this contract 
 has been executed in four parts, each 
 having the full force and effect of an 
 original by the United States of 
 America, acting through the United 
 States Liquidation Commission — War 
 Department, E'dwin B. Parker, chair- 
 man, and by the Republic of France, 
 acting through M. Edouard Ignace, le 
 Sous-Secretaire d'Etat de la Justice 
 Militaire au Ministere de la Guerre. 
 
 United States of America, 
 By Edwin B. Parker, 
 Chairman^ United States Liquidation 
 Connnission — TT'rtr Department. 
 
 Republic of France, 
 By Edouard Ignace, 
 Sous-Secretaire d'Etat de la Justice 
 Militaire au Ministere de la Guerre. 
 
 diqueesdans leContrat du2.j du Xovem- 
 bre, ces modalites et le taux du change 
 pour la conversion des francs en dol- 
 lars et reciproquement devant faire 
 rob jet d'un accord ulterieur faisant 
 suite anx n^giK'iations qui se poursui- 
 vent A ce sujet entre les rt -present ants 
 des deux Gouvernements. 
 
 Article V. L'Amerique accepte de 
 laisser en France jusqu'au 31 D4cem- 
 bre 1923 k la disposition i\ tout mo- 
 ment des representants autoris6s de 
 la France toutes les archives, rapports 
 et correspondances de toute nature re- 
 latifs aux reclamations prises en 
 charge par la France par les presentes, 
 et relatifs aux reclamations similaires 
 qui ont §t6 jusqu'ici reglees par rAm6- 
 rique, pour les besoins de la Finance 
 a fin de consid6rer et r6gler toutes les 
 reclamations maintenant en instance 
 ou les reclamations qui pourraieut etre 
 presentees posterieurement. 
 
 En foi de quoi, le jour et Tan au 
 debut prei-ites ce contrat a ete redige 
 en quatre exemplaire, chacnn d'eux 
 ayant la meme valeur et effet qu'un 
 original, par les Etats-Uni d'Ameri- 
 que, representes par lo Commission de 
 Liquidation des Etats-Unis du D6- 
 I)artement de la Guerre. Edwin B. 
 Parker, President, et par la Repu- 
 blique Francaise, representee par M. 
 Edouard Ignace, Sous-secretaire d'Etat 
 de la Justice Militaire au Minis; Tm-p dp 
 la Guerre. 
 
 Etats-Unis D'AMKiiu^i i.. 
 Par Edwin B. Parker. 
 President, Commission de Liquidation 
 
 des Etats-lnis, Department de la 
 
 Guerre. 
 
 RKPURLIQI'H FltANCAISE. 
 
 Par Edouard Ignace, 
 Sous-Secretaire d'Etat de la Justice 
 Militaire au Ministere dc la Guerre. 
 
 APPENDIX XXXIV. 
 
 cuthell-brofferh) agreement. 
 
 This agreement, made and entered into this 1.3th day of August. A. D. 1919, 
 by and between Coinm. Gran Croce Federico Brofferio, Consigliere di Stato, 
 and duly authorized representative of the under secretary of the treasury 
 
 I 
 
UNITED STATES LIQUIDATION COMMISSION. 183 
 
 for the liquidation of the arms and munitions and the aeronautical depart- 
 ments, and duly authorized representative of the Interministerial Committee 
 of the Royal Italian Government for the readjustment of the industries of 
 the war, and Mr. Chester W. Cuthell, special representative of the Secretary 
 of War of the United States of America, witnesseth : 
 
 Whereas the War Department of the United States has requested that it 
 be reimbursed by Italy for moneys paid out and indebtedness incurred by 
 it in behalf of Italy both under formal contracts for the delivery of war 
 materials to Italy at cost and under informal arrangements made to supply 
 such war materials needed by Italy in the prosecution of the war but not . 
 required after the armistice, the nature and amounts of such claims of the 
 War Department being set forth in the letters addressed to Commandatore 
 Brofferio by Mr. Cuthell, under date of April 26. 1919, and by Mr. Ray, as- 
 sistant to Mr. Cuthell, under date of July 11, 1919 ; and 
 
 Whereas Connnandatore Brofferio and Chester W. Cuthell, being charged 
 by their respective Governments to determine the amounts due from Italy to 
 the War Department of the United States and the settlement to be made 
 therefor, in respect to the matters hereinafter set forth, have made the fol- 
 lowing agreement for settlement and liquidation thereof: 
 
 Now, therefore, in consideration of the premises and of the importance of 
 avoiding misunderstandings and delays in the adjustment of war-time trans- 
 actions, the parties hereto, ^ acting for and in behalf of their respective Gov- 
 ernments and the departments thereof concerned with the transactions herein 
 referred to, do agree as follows: 
 
 I. 
 
 The amounts due and payable by Italy to the Wnv Department in respect 
 to picric acid (not delivered), spruce and fir, and niti'ocellulose powder are 
 as follows : 
 
 Picric acid $4,000,000 
 
 Spruce and fir 1, 700, 000 
 
 Nitrocellulose powder 250, 000 
 
 5, 950, 000 
 The W^ar Department will make to Italy an allowance of seven hundred 
 afty thousand dollars ($750,000.00) to be applied upon said sum of five million 
 nine hundred fifty thousand dollars ($5,9^0,000.00), making the balance due 
 thereon five million two hundred thousand dollars ($5,200,000.00). 
 
 II. 
 
 Tlie War Department will waive and cancel its claims against Italy for four 
 million thirty-eight thousand dollars ($4,038,000.00) for trinitrotoluol, for one 
 million three hundred twenty-three thousand dollars ($1,323,000.00) for cotton 
 1 inters. 
 
 III. 
 
 Italy hereby cancels and releases any and all claims arising from facts and 
 involving principles similar to these upon which the claims above referred to 
 are based which Italy has or may have against the War Department, includ- 
 ing, among others, claims to be reimbursed for expenditures made for exten- 
 sions of plants for the manufacture of airplanes, hydroplanes, automobiles, and 
 
184 UNITED STATES LIQUIDATION COMMISSION. 
 
 other war materials in Italy, for losses sustained by Italy upon raw materials 
 accumulated for such, manufacture, and for excess of actual costs of materials 
 supplied to the War Department over the amounts for which such materials 
 have been invoiced to the War Department. All property, equipment, raw 
 materials, and finished products acquired by Italy in respect to the claims, 
 hereby waived by it shall be and remain the sole property of Italy. Cora- 
 mandatore Brofferio states that the claims hereby waived by Italy exceed one 
 million dollars ($1,000,000.00) in amount. Mr. Ray states that he does not 
 know of the existence of any claims of the War Department against Italy 
 other than those set forth in this agreement which arise from facts or involve 
 principles similar to those upon which the claims referred to in this agreement 
 are based. 
 
 IV. 
 
 The following claims of the War Department against Italy are balances due 
 for the cost of commodities delivered to Italy, concerning which Commandatore 
 Brofferio states that he has not sufficient information to justify the inclusion 
 of any particular amounts therefor in this agreement : 
 
 Picric acid excess raw material cost $319, 000 
 
 Ammonium nitrate 1.56,656 
 
 Overcoats 147, 789 
 
 Dixie magnetos ' 47, 175 
 
 Liberty motors 26,728 
 
 Invoices therefor have been presented to the Italian Military Mission in the 
 United States, but the War Department records show that payment thereof 
 has not yet been made. Commandatore Brofferio has been informed that the 
 invoice for Liberty motors, above referred to, has been paid. If they have not 
 been paid the invoices for these commodities shall, in the lisual course, be 
 paid by the Italian Military Mission at Washington, D. C, as and when such 
 invoices shall have been duly audited by it. Directions to this effect shall be 
 forwarded to the Italian Military Mission immediately. 
 
 The War Department has rendered to the Italian Military Mission in the 
 United States invoices in the sum of one hundred eighty-four thousand eighty 
 dollars ($184,080.00), for copper ingots shipped to Italy in connection with the 
 electrification of the Modane Railway. These invoices have not been paid. 
 The question of who shall pay for that improvement is before the Supreme 
 Interallied Authorities. This agreement shall not affect in any way the rights 
 ot Italy or the War Department in respect to payment for said copper. It Is 
 convenient that settlement for said copper shall await the decision of the 
 Supreme War Council or other competent authority and be made in accordance 
 therewith. 
 
 V. 
 
 It is understood and agreed that the figures herein above set forth in para- 
 graphs 1 and 2 are based in part upon estimates and that this settlement is 
 made arbitrarily in the interests of both Governments. No further accounting 
 shall be requested by either in respect thereto, either as to salvage values or 
 otherwise. All property, equipment, raw material, and finished products ac- 
 quired by the United States in the transactions from which such claims arise 
 shall be and remain the sole property of the United States. 
 
UNITED STATES LIQUIDATION COMMISSION. 
 VI. 
 
 185 
 
 The purpose of this agreement is the determination of the amounts now due 
 from Italy in connection with the supply of war materials requested in behalf 
 of the Italian Army for the prosecution of the war. The question of 
 whether payment of the amount of five million two hundred thousand dollars 
 ($5,200,000.00) set forth in paragraph 1 can be made by credits from the United 
 States is solely within the jurisdiction of the Treasury Departments of the two 
 countries. 
 
 In witness whereof, the parties hereto have hereunto set the.ir hands upon^ 
 duplicate originals, the day and year first above written. 
 
 (Signed) Federico Bbofferio, 
 
 Co mm. Gr. Cr. Authorized Representative of the In- 
 termimsterial Committee of the Italian Government 
 for the Readjustment of the Industries of War. 
 (Signed) Chester W. Cuthell, 
 
 Special Representative of the Secretary of War of the 
 United States of America. 
 
 By .John H. Ray, .Jr., Assistant. 
 
 In presence of: 
 (Signed) 
 (Signed) 
 
 F. C. Weems. 
 F. Vimercarti. 
 
 APPENDIX XXXV. 
 
 General Settlement Between United States of America and Kingdom of 
 Italy, February IS, 1920. 
 
 This contract entered into this IStli 
 day of February, 1920, by and between 
 the United States of America (herein- 
 after called "America") acting through 
 the United States Liquidation Com- 
 mission — War Department, Edwin B. 
 Parker, chairman (by Harry T. Klein, 
 special representative), of the one part ; 
 and the Kingdom of Italy (hereinafter 
 called "Italy"), acting through Gen- 
 eral Angelo Modena for the Ministry 
 of War, representing also the former 
 ministry of arms and ammunitions, and 
 the other ministries of the Kingdom of 
 Italy, according to the delegation re- 
 ceived from the council of ministers, 
 of the other part, witnesseth: 
 
 That, ivhereas, between the 6th day 
 of April, 1917, and the 31st day of De- 
 cember, 1919 (hereinafter designated 
 war period), the War Department of 
 the United States of America and the 
 American Expeditionary Forces on the 
 one part (hereinafter called War De- 
 
 Col presente contratto stipulato il 
 16mo Febbraio 1920 da e tra gli Stati 
 Uniti di America (dora innanzi chis- 
 mati "America") rappresentati dalla 
 Commissione di Liquidazione degli 
 Stati Uniti, Dipartimento della Guerra, 
 di cui e presidente il Sig. Edwin B. 
 Parker, per mezzo del Sig. Harry T. 
 Klein, " Delegato Speciale " da uii 
 lato, e il Regno d' Italia (d' ora in- 
 nanzi chiamato "Italia"), rappresen- 
 tato dal Generale Angelo Modena per 
 il Ministero della Guerra, in rappre- 
 sentanza anche dell' ex-Ministero Arm! 
 e Munizioni e degli altri Ministeri del 
 Regno d' Italia, giusta delegazione 
 avuta dal Consiglio dei Ministri, dall' 
 altro lato, si stipula : 
 
 Considerato che tra il 6 Aprile 1917 
 e il 31 Dicembre 1919 (da qui innanzi 
 chiamato " Periodo di guerra") il Di- 
 partimento della Guerra degli Stati 
 Uniti di America e le Forze Spedizio- 
 narie Americane da un lato (di qui 
 innanzi chiamati " Dipartimento della 
 
186 
 
 UNITED STATES LIQUIDATION COMMISSION. 
 
 pjirtment ) and the Ministry of War, 
 tlie former ministry of arms and am- 
 munition of Italy, and the Italian 
 Army (hereinafter called Ministry of 
 War) on the other part, had nimierous 
 transactions between each other con- 
 nected with or incidental to the con- 
 duct of the war in the prosecution of 
 which the parties were associated ; and 
 Whereas America and Italy desire, 
 with respect to such transactions as 
 occurred in France. Italy, and regions 
 adjoining Italy, to make a full, final, 
 and complete settlement of all bills, ac- 
 counts, claims, obligations, demands, 
 rights, and causes of action of every 
 nature whatsoever, whether growing 
 out of the delivery of or contracts for 
 the delivery of materials, supplies, or 
 equipment ; or for services rendered 
 or contracted to be rendered; or for 
 the occupation and use of all public 
 properties of Italy, and all damages 
 thereto; or otherwise, initiated, aris- 
 ing or accruing during the .said war 
 period, said settlement to be herein- 
 after designated as general settlement ; 
 and 
 
 Whereas, the nnlitary forces of 
 America have, as incidental to or con- 
 nected with the conduct of the war, oc- 
 cupied and used real property, ap- 
 propriated and used personal property, 
 damaged real and personal property, 
 and damaged individuals, resulting in 
 their injury or death ; all of which said 
 occupancies, appropriations, uses, and 
 damages occurred durinn: the said war 
 period — and for which Italy has agreed 
 to substitute herself for America and 
 guarantee America against all such 
 unsettled claims, for the consideration 
 hereinafter set forth : and 
 
 Whereas, the parties hereto in ar- 
 riving at such general settlement have 
 agreed that in respect to the transac- 
 tions aforesaid, there is due by Italy to 
 America the sum of four million six 
 hundred sixty-nine thousand nine liun- 
 dred and seventy-four lire and seventy- 
 
 (Uierra") e il Ministero della Guerra, 
 I' ex Ministero della Armi e Munizioni 
 deir Italia e TEsercito Italiano (d' ora 
 innanzi chiamati " Ministero della 
 Guerra") dall' altro lato. eberro nu- 
 ineros<» transasioni tra di loro, con- 
 upsse <) dipendenti dalla condotta della 
 guerra. neliu" prosecuzione della quale 
 le due parti erano associate; o 
 
 Ccmsiderato che l' America e l' Italia 
 desiderano, rispetto a tutte le transa- 
 zioni che ebl^ero luego in Francia, 
 Italia e regioni ftnitime all' Italia, di 
 fare un totale, finale e completo rego- 
 lamento di tutte le fatture, conti, le- 
 clami. obbligazioni, demande, diritti e 
 cause di azione, di ogni e qualziasl 
 natura, sia sergenti dalla consegna o da 
 conti'atti per la consegna di materiale, 
 f()rniture o equipaggiamento, a per 
 servizi resi o contrattati perchS fos- 
 sero resi, o per la occupazione e use 
 di ogni propriety pubblica d' Italia, 
 e tutti i danni inerenti, sia in altro 
 modo ; iniziati, sorti o derivanti du- 
 rante il detto " Periodo di guerra," 
 dovendo tale regolamento d' ora in- 
 nanzi essere designate come •' Regola- 
 mento Generale " ; o 
 
 Considerato che le forze militari 
 deir America hanno in conseguenza e 
 in dipendenza della condotta della 
 guerra occui)at<» o usato proprietJl 
 innnobiliari, preso i)ossesso e usato di 
 propriety mobiliari, dannoggiato pro- 
 }>riet{l inmiobiliari e mobilijiri, e cau- 
 sato danni a individui. che risultarouo 
 in ferite o morte dei medesimi ; tutte 
 le quali occupazioni, preso di possess^, 
 usi e danni sono accorsi durante il 
 detto " Feriodo di guerra", e per cui 1' 
 Italia ha convenuto di so.stituirsi all' 
 America a garantire la stessa contro 
 tutti i detti non ancora regolati re- 
 clami alle condizioni qui' sotto indi- 
 cate; e 
 
 Considerato che le parti in parola 
 nel giungere a tale Regolamento gene- 
 rale hanno convenuto che per rispetto 
 alle transazioni summenzionate risulta 
 un debito dell' Italia verso 1' America 
 di quattro milioni sei cento sessanta 
 nove mi la nove cento settanta quattro 
 
UNITED STATES LIQUIDATION COMMISSION. 
 
 187 
 
 one centimes (lire 4,669,974.71), and 
 there is due by America to Italy the 
 sum of thirty-three million seven hun- 
 dred seventy-six thousand five hundred 
 twenty-one lire and forty-four centimes 
 (lire 33.776.521.44), and that there is 
 therefore a net balance of twenty-nine 
 million one hundred six thousand five 
 hundred forty-six lire and seventy-five 
 centimes (lire 29,106,546.75) due Italy, 
 according to the liquidation account at- 
 tached to this agreement. 
 
 Now, therefore, in consideration of 
 the premises, it is mutually agreed be- 
 tween the parties hereto as follows: 
 
 Article 1. America agrees to pay in 
 cash to Italy through the Ministry of 
 War the said balance of twenty-nine 
 million one hundred six thousand five 
 hundred forty-six lire and seventy-five 
 centimes (lire 29.106,546.75) within a 
 month from the signature of the pres- 
 ent agreement. 
 
 Article 2. Italy does hereby fully, 
 completely and in all things release 
 and discharge America, and America 
 does hereby fully, completely and in all 
 things, release, and discharge Italy, in 
 respect to all of said transactions afore- 
 said arising in France, Italy and 
 regions adjoining Italy, from all bills, 
 accounts, claims, obligations, demands, 
 rights, causes of action, suits, and con- 
 troversies of every nature whatsoever, 
 which either party now has against the 
 other, or which may hereafter arise, 
 whether by reason of or in ai>y wise 
 incident to or growing out of the de- 
 livery of or contracts for the delivery 
 of materials, supplies, or equipment, or 
 for services rendered or contracted to 
 be rendered, or for the occupation and 
 use of all public properties of Italy, 
 and damages thereto, or otherwise, 
 initiated, arising, or accruing in France, 
 Italy, and regions adjoining Italy dur- 
 ing the said war period l^etween the 
 War Department on the one part and 
 the Ministry of War, representing also 
 the other ministries, on the other. 
 
 lire e settanta uno centesimi (lire 
 4,669,974.71) ed un debito dell' America 
 a favorc dell' Italia di ti'enta tre milioni 
 sette cento settanta sei mila cinque 
 cento venti una lire e quaranta quat- 
 tro centesimi (33,776.521.44) ; e percio 
 una differenza attiva a favore dell' 
 Italia di venti nove milioni cento sei 
 mila cinque cento quaranta sei lire e 
 settanta cinque centesimi (lire 29.106,— 
 546.75) come da conto di liquidazione 
 die si allega al presente contratto. 
 
 In vista di quanto sopra si 6 con- 
 venuto tra le due parti quanto segue: 
 
 Aeticolo 1. L' America s" impegnu 
 di pagare in contanti all' Italia e per 
 essa al Ministero del la Guerra la detta 
 somma di venti nove milioni cento sei 
 mila cinque cento quaranta sei lire e 
 settanta cinque centesimi (lire 29,106,- 
 546.75) entre un mese dalla firma 
 della presente Convenzione. 
 
 Articolo 2. L'ltalia col presente con- 
 trato totalmente e completamente e 
 sotto ogni punto di vista libera o 
 scarica 1' America, e V America col 
 presente contratto totalmente e com- 
 pletamente e sotto ogni punto di vista 
 libera e scarica V Italia, per rispetto a 
 tutte le summenzionate transazioni 
 che ebbero luogo in Francia, Italia e 
 regioni fiinitime all' Italia, da ogni fat- 
 tura, conto, reclamo, obbligazione, do- 
 manda, diritto. causa di azione, pro- 
 cesso e controversio di qualsiasi natura 
 che ognuna delle due parti ha orji 
 contro r altra, o che puo sorgere in 
 seguito; sia causati, sia in qualsivo- 
 glia modo risultanti o derivanti dalla 
 consegna o dai contratti di consegna 
 di materiali, forniture o equipaggia- 
 menti, o da servizi resi o contrattati 
 perche fossero resi, o dall' occupa- 
 zione e uso di qualsiasi pubblica pro- 
 prietjl in Italia, e danni inerenti, o 
 in altro modo; iuiziati, sorti o deri- 
 vanti in Francia, Italia e regioni fini- 
 time air Italia durante il detto Peric- 
 do di guerra tra il Dipartimento della 
 Guerra da un lato e il Ministero della 
 Guerra, in rappresentanza anche degli 
 altri Minister!, dall' altro lato. 
 
188 
 
 UNITED STATES LIQUIDATION COMMISSION. 
 
 Article 3. Italy does hereby agree 
 to indemnify and save America harm- 
 less, and does hereby fully, completely, 
 and in all things release and discharge 
 America from all claims, demands, ob- 
 ligations, liabilities, suits, and contro- 
 versies of every kind and nature aris- 
 ing in France, Italy, and regions ad- 
 joining Italy during said war period, 
 which any inhabitant of Italy or any 
 person subject to the sovereignty of 
 Italy, or any orgauization, association, 
 or corporation, commune, or Province 
 of Italy may now have; or which may 
 liereafter accrue, for damage to. use, 
 • tcupation, or loss of property, real or 
 personal ; or injuries to or death of 
 persons, caused by or resulting from 
 acts or omissions of the American Mili- 
 tary Forces, or of anyone connected 
 therewith, and which have not already 
 Iteen paid directly by America. 
 
 Article 4. Nothing hereinbefore con- 
 tained shall be held or construed to in 
 any wise annul, alter, modify, or affect 
 the formal obligations of Italy held by 
 America (which do not concern the 
 items included in the accounts hereto 
 j.nnexed) ; or the obligations of either 
 party arising out of contracts, agree- 
 ments, or arrangements entered into be- 
 vtH'ii said parties in America, or to in 
 . iiy wise affect any matters now pend- 
 ing in America between said parties. 
 This agreement does not in any way 
 alter or affect the contract made be- 
 tween Feclerico Brofferio, representing 
 Itiily, and Chester W. Cuthell, repre- 
 senting America, dated August 13, 1919, 
 nor the contract made between Comm. 
 Arrigo Gullini, representing Italy, and 
 Major W. S. Franklin, representing 
 America, dated March 16, 1919, relative 
 to the transportation of American 
 troops from Italy and Marseille to 
 America. The claim of America 
 against Italy for copper ingots shipped 
 to Italy for the electrification of the 
 Modane Railroad is not covered by 
 this general settlement, said claim be- 
 ing held in abeyance pending a de- 
 cision of the Inter-Allied Reparation 
 
 Articolo III. L'ltalia col presente 
 contratto si obbliga a sostituirsi all' 
 America garantendola totalmente, com- 
 pletamento e sotto ogni punto di vista 
 llverandola e scaricandola riguardo a 
 tutti i reclami, demande, obbligazioni, 
 debiti. pi-ocessi e controversia di ogni 
 genero e natura sorgenti in Francia, 
 Italia e regioni finitime all' Italia du- 
 rante il detto Periodo di guerra, che 
 qualunque abitante d' Italia, o qualun- 
 que persona soggetta alia sobranita 
 d' Italia, o qualunque organizzazione, 
 ass(»ciazione, corporazione, Comune o 
 Provincia d' Italia sellevi o possa solle- 
 vare piii tardi per danni, uso, occupa- 
 zione o i^erdita di propriety innnobi- 
 liare, o mobiliare o tVrite o morte di 
 l)ersone causate o risultanti da atti o 
 omi.ssicmi delle forzo militari ameri- 
 cane o di chiunque connesso coUe 
 medesime, che non siano gi^ stati pa- 
 gati direttamente dall' America. 
 
 Articolo IV. Nulla di quanto 6 eon- 
 tenuto nol presente contratto dovrft es- 
 sere ritenuto o interpretato por annul- 
 lare, alterare, moditicare o influire in 
 alcun modo sulle obbligazioni formall 
 deir Italia nelle jnani dell' America 
 (che non riguardino le partite comprose 
 nel conto allegato) o sulle obbligazioni 
 di ambo le parte sorgenti da contratti, 
 accordi o regolamenti stipulati tra le 
 due parti in America ; o por esercitare 
 qualsiasi effetto sulle questioni ora 
 pendenti in America tra le due parti 
 sumnienzionate. Questa convenzione 
 non riguarda o altera in alcun modo 
 il contratto stipulato tra il Sr, Fede- 
 I'ico Brofferio in rappresentanza dell' 
 Italia e il Sr. Chester W. Cuthell in 
 rappresentanza dell' America, in data 
 13 Agosto 1919, e nemmano quelle 
 siipulato fra il Sr. Connu. Arrigo Gul- 
 lini in rappresentanza dell' Italia e il 
 Sr. :Maggiore W. S, Franklin in rap- 
 presentanza deir America, in data 16 
 Marzo 1919, relative al trasporto delle 
 truppe americane dall' Italia e da 
 Marsiglia in America. II reclamo dell' 
 America contro l'ltalia per verghe di 
 rame spedite in Italia per I'elettrifi- 
 cazione della ferrovia di Modane non 
 
UNITED STATES LIQUIDATION COMMISSION. 
 
 189 
 
 Commission on the question as to who 
 should pay for said improvement. 
 
 Article 5. This contract shall not 
 be construed to relate to or in any- 
 wise affect transactions pertaining to 
 any department or departments. 
 ;.agency or agencies, of the United 
 States of America other than said 
 V War Department, and all of the 
 agencies of said War Department and 
 the American Army and all of its 
 branches and agencies. 
 
 In witness whereof on the day and 
 year first above written this contract 
 has been executed in four parts, each 
 having the full force and effect of an 
 original, by America acting through 
 the United States Liquidation Com- 
 mission — War Department. Edwin B. 
 Parker, chairman (by Harry T. Klein, 
 special representative), and by Italy, 
 acting through General Angelo Mo- 
 dena, for the Ministry of War. and 
 also for the former ministry of arms 
 and ammunition and the other minis- 
 tries. 
 
 United States of America. 
 For United States Liquidation 
 Cmiimission — Wa r D epa rtmen t. 
 Edwin B. Parker, Chairman. 
 
 By Harry T. Klein, 
 
 Special Representative. 
 KiNGDOivt OF Italy. 
 
 For the ministry of War and 
 also Represent infj tJic Other 
 Ministries. 
 By Angelo ^Modena. 
 
 Maior General. 
 
 ^ coperto dal presente Regolamento 
 Gtenerale tale reclamo dovendo essere 
 tenuto in sospezo in attesa di una de- 
 cisione della Commissione interalleata 
 delle riparazioni sulla questione ; Chi 
 deve pagare per tale miglioramento. 
 
 Articolo V. Questo contra tto non 
 potra essere interpretato come rife- 
 rentesi o in qualsiasi modo riguardante 
 transazioni concernenti qualsiasi Di- 
 partimento o Dipartimenti, Rapp^- 
 sentanza o Happresentanze degli Stati 
 Uniti di America all' iufuori del detto 
 Dipartimento della Guerra o tutte le 
 Rappresentanze del modesimo Diparti- 
 mento della Guerra e I'Esercito Ameri- 
 cano e tutti i suoi rami e Rappresen- 
 tanze. 
 
 In testlmonianza di quanto sopra, 
 nel giorno o anno . scritti in principio, 
 ii presente contrattp § stato redatto in 
 quattro copie. ciascuna avente la 
 plena forza e I'effetto di un originale, 
 dali' America, rappresentata dalla 
 Commissione di I^iquidazione degli 
 Stati Uniti, Dipartimento della Guer- 
 ra, di cui e Presidente il Sr. Edwin B. 
 Parker, in persona del Sr. Harry T. 
 Klein, Delegato Speciale, e dall' Italia, 
 rappresentata dal Generale Angelo 
 Modena, pel Ministero della Guerra e 
 anche per V ex-Ministero Armi e Mii- 
 nizioni e per gli altri Ministeri. 
 Stati Uniti di America, 
 Par la Commissione de Liquida- 
 sione degli Stati Uniti — Departi- 
 mento della Gnerra. Edwin B. 
 Parker, Presidente. 
 Per Harry T. Klein. 
 
 Delagato Speciale. 
 Regno d'Italia. 
 Pel Ministero della Guerra in rap- 
 present anza anche degli altri Mir 
 nisteri. 
 Per Angelo Modena. 
 
 Maggiore Generale. 
 
190 
 
 UNITED STATES LIQUIDATION COMMISSION. 
 
 Statement of accounts of the Italian and American Governments for general 
 
 settlement. 
 
 ITALIAN ACCOUNTS. 
 
 AMBEICAN ACCOUNTS. 
 
 Railway transportation ac- 
 count 
 
 Miscella- 
 n e o u s 
 material 
 ( to have 
 been 
 paid for 
 in cash) L3, 823, 420.50 
 
 Less bills 
 for Sig- 
 n a 1 
 C o r p s 
 for labor 
 and ma- 
 t erial, 
 disal- 
 lowed __ 8,076.47 
 
 Subsistence stores and 
 oth<'r material to have 
 been returned in kind, 
 $.*i82, 802. 03 ; rate of ex- 
 change 13 lire to $1 
 
 Aviation account (see 
 proems verbal of Decem- 
 ber 10, 1919) 
 
 Artillery account, gold fr. 
 2, 705, 398. 40 ; rate of 
 exchange 2.0526 lire to 
 1 gold franc 
 
 R. R. & C. account 
 
 American Relief Adminis- 
 tration account 
 
 lAre. 
 1, 166, 512. 40 
 
 Lire. 
 
 Q. M. Corps bills, $41,374.04 ; 
 rate of exchange 13 lire 
 to $1 537,862.52 
 
 Medical Corps bills, fr. 
 1,514,191.71 ; rate of ex- 
 change 1.20 lire to 1 fr__ 1, 817, 030. 05 
 
 Transportation Corps bills— 2, 128, 700. 00 
 
 Q, M. Corps bills against 
 Italian officers' mess, Lyon, 
 France 77,497.14 
 
 Q. M. Corps bills for miscel- 
 laneous material 108, 885. 00 
 
 3, 815, 353. 03 
 
 4, 976, 426. 39 
 18, 073, 348. 17 
 
 5, 553, 100. 75 
 180, 000. 00 
 
 11, 780. 70 
 
 Gross amount 33,776,521.44 
 
 Gross amount 4. 
 
 ), 974. 71 
 
 recapiti:lation. 
 
 Lire. 
 
 Gross amount due Italy 33, 776, 521. 44 
 
 Gross amount due America 4,669,974.71 
 
 Net amount due Italy 29,106.546.75 
 
 This statement is in absolute agreement with the statement presented by the Italiaa 
 office charged with making general settlement for Italy. 
 
 (Signed) Victor A. Libretti, 
 
 2nd Lieut., Q. M. Corps, U. S. Army. 
 
 Washington, D. C. May 25th, 1920. 
 Memorandum to be attached to all copies of .statement of accounts of Italian 
 and American Governments for general settlement, being basis of the general 
 settlement of February 18th. 1920 (to be attached to all copies of contract in 
 files). 
 
 1. In the column of credits to the American account in the attached gen- 
 eral statement of accounts of the Italian and American Governments, item 
 number 1, entitled " Q. M. C. bills," amounting to $41,374.04, should read, 
 " American bills, in dollars," and includes the following : 
 
 (1) Motor Transport Corps bills, in dollars, against the 
 
 Italian Government ^ > $120, 35 
 
 (2) Ordnance Corps bills, in dollars, against the Italian 
 
 Government 3, 511. 35 
 
 (3) Quartermaster Corps bills, in dollars, against the 
 
 Italian Government 37, 74^ 34 
 
 Total 41, 374. 04 
 
UNITED STATES LIQUIDATION COMMISSION. 191 
 
 2. Item number 2, entitled " Medical Corps bills," amounting to frs. 1.514,191.71, 
 should read, "American bills in francs," and includes the following: 
 
 Frs. 
 
 (1) Medical Corps bills in francs against the Italian 
 
 Government 264, 279. 50 
 
 (2) Ordnance Corps bills in francs against the 
 
 Italian Government 1, 249, 702. 21 
 
 (3) Quartermaster Corps bills in francs against the 
 
 Italian Government 210. 00 
 
 Total 1,514, 191. 71^- 
 
 3. Item number 3, entitled " Transportation Corps bills," amounting to lire 
 2.128,700.00, should read, " Motor Transport Corps bills." 
 
 Louis Bboido. 
 
 APPENDIX XXXVI. 
 
 United States Liquidation Commission — War Depabtment. 
 statement of expenditures from date of organization, february 11, 1919, to 
 
 MAY 31, 1920. 
 
 Salaries of CommLssioners $31, 449. 97 
 
 Foreign per diem allowance of Commissioners 13, 529. 13 
 
 Salaries of civilian employees 85,949.77 
 
 Foreign per diem allowance of civilian employees 63, 419, 44 
 
 Foreign per diem allowance and expenses of military personnel 15, 046. 86 
 
 Office supplies, printing, etc 1, 701. 72 
 
 Loss on exchange 11. 706. 28 
 
 Total 222, 803. 17 
 
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