(c) crown copyright Catalogue Reference:CAB/24/86 Image Reference:0001 mwmxs THE Mmim OE HIS BRITANNIC MAJESTY'S G O W R N I M T ) . WAR 1 0 I J CABINET SETKEPCRT CE THE SUBCOMMITTEE Eg THE PEACH ^FEEEENOE APPOINTED TO CONSIDER THE ORGANIZATION OP THE ' REPARATION COMMISSION.. The f o l l o w i n g document h a s b e e n communicated t o me by t h e r e p r e s e n t a t i v e of t h e T r e a s u r y i n P a r i s , w i t h a v e r b a l message from t h o C h a n c e l l o r of t h e . ' E x c h e q u e r , a s k i n g t h a t i t may be c o n s i d e r e d by t h e C a b i n e t . The Sub-Committee has adjourned f o r a few days i n o r d e r t h a t t h e a p p r o v a l of e a c h Government may be o b t a i n e d t o it. ' (Signed) MoPJLHAHOT 2 , W h i t e h a l l G a r d e n s , 6.W. 6th A u g u s t , 1 9 1 9 . 4 t h August, 1919. A Committee composed as f o l l o w s UNITED STATES Colonel D i l l o n , Major T y l e r , GREAT BRITAIN M. Dudley-Ward Major Monfrieej PBANCE . . . . . . . . . . . . . . M. Aron, M. J o u a e s e t , ITALY . . . . . . . . . . . . . . M. d ' A m e l i e , C a r t i e r de M a r c h i e n n e , Maj or Beiilemaus * met under t h e Chairmanship of M. O a r t i e r de Marchienne, on t h e 3 9 t h , 3 0 t h and S l a t J u l y and t h e 1 s t , 2nd and 4 t h A u g u s t , 1 9 1 9 , and r e p o r t s a s follov/B : BELGIUM I. . . . . . . . . . . . . . . Mi GENERAL PRINCIPLES. D u r i n g t h e c o u r s e of t h e d e l i b e r a t i o n s of t h e Committee, t h e 1^ f o l l o w i n g g e n e r a l p r i n c i p l e s emerged. (a) I t was obvious t h a t . e a c h . o f t h e D e l e g a t e s or A s s e s s o r s on t h e Commission s h o u l d have N a t i o n a l O r g a n i z a t i o n s t o a d v i s e them w i t h r e g a r d to t h e p u r e l y n a t i o n a l I n t e r e s t s of t h e c o u n t r y concerned. (b) At t h e same time t i e work cf the,-Commission i s i n t e r ­ n a t i o n a l and t h e r e f o r e i t a p p e a r s n e c e s s a r y t h a t t h e v a r i o u s E x p e r t s of t h e d i f f e r e n t N a t i o n a l O r g a n i z a t i o n s should c o n s u l t t o g e t h e r m.d p r e p a r e t h e m a t e r i a l for t h e d e l i b e r a t i o n s of t h e Commission. It i s t h e r e f o r e c o n s i d e r e d t h a t v a r i o u s I n t e r - A l l i e d Committees and Sub-Committees s h o u l d be a p p o i n t e d t o p e r f o r m o r p r e p a r e t h e work of t h e Commission. Each of t h e s e Cornmi thee^.. or Sub-Committees should, have a j ^ a i r m a n J ^ h e a p p o i n t e d to the. Commission,from amongst irs^members^nd t f r i s Chairman shoullTHave an Ex­ e c u t i v e O f f i c e r (who might be t h e S e c r e t a r y of t h e Committee). t * d i r e c t t h e o p e r a t i o n s of an I n t e r - A l l i e d S t a f f Prom t h e s e two c o n s i d e r a t i o n s t h e r e emerges t h e i n g scheme of o r g a n i s a t i o n . The I n t e r n a t i o n a l and N a t i o n a l o r g a n i s a t i o n s be on t h e same p l a n . f*llcw­ shouli Each of t h e N a t i o n a l o r g a n i z a t i o n s s h o u l d be r e s p o n s i b l e to t h e D e l e g a t e or t h e A s s e s s o r on t h e R e p a r a t i o n Commission cf t h e c o u n t r y concerned and t h e Chiefs of t h e v a r i o u s T e c h n i c a l S e r v i c e s of each N a t i o n should r e p r e s e n t t h e i r Government on t h e I n t e r - A l l i e d Committees o r Sub- Committees suggested. (c) In view of t h e f a c t t h a t t h e r e s p o n s i b i l i t y f o r p a y ­ ment of t h e e x p e n s e s of t h e Commission d e v o l v e s on t h e Governments of t h e C e n t r a ! Powers, i t a p p e a r s t o be necessary t h a t t h e v a r i o u s d e l e g a t i o n s should n o t be a l l o w e d a f r e e hand i n t h e a p p o i n t m e n t of p e r s o n n e l . In t h e f i r s t p l a c e i f one of t h e Governments r e p r e s e n t e d had an i n s u f f i c i e n t o r g a n i z a t i o n , i t might p a r a l y s e t h e f u n c t i o n i n g of t h e whole Commission, w h i l e , a t t h e same t i m e , i f one Govern­ ment developed an u n n e c e s s a r y o r g a n i z a t i o n i t would i n ­ c r e a s e t h e E s t a b l i s h m e n t c o s t s of the Commission (which i s o b v i o u s l y t o be a v o i d e d ) . Appointment of t h e Chief D e l e g a t e s and t h e P r i n c i p a l Officials, I t i s obviously too early t o estimate d e f i n i t e l y t h e p e r s o n n e l r e q u i r e d , b u t i t would appear t h a t t h e f o l l s w ­ ing, g e n e r a l r u l e might be employed The American, B r i t i s h , F r e n c h , I t a l i a n and B e l g i a n d e l e g a t i o n s s h a l l have t h e r i g h t t o , a p p o i n t t h e same number cf o f f i c i a l s and i t i s c o n s i d e r e d n e c e s s a r y t h a t t h e y should have a t l e a s t one permanent o f f i c i a l t o s e r v e on each of Committees o r Sub-Committees s u g g e s t e d i n t h i s r e p c r t ; t h e number of t h e o f f i c i a l s t o bo a p p o i n t e d by t h e o t h e r A l l i e d Governments could be d e t e r m i n e d l a t e r on by t h e Commission. (d) I n view of t h e f a c t t h a t t h e r t s ould be an e q u i t a b l e d i s t r i b u t i o n cf t h e Chairs of t h e v a r i o u s Committees and effthe D i r e c t o r a t e s of t h e v a r i o u s depending Adrain­ i s t ^ a t i o n s between t h e d i f f e r e n t N a t i o n s , i t i s c o n s i d e r e d t h a t a l l t h e s e n o m i n a t i o n s o r a p p o i n t m e n t s should be made by t h e Commission. (e) As t h e method of v o t i n g and t h e r e p r e s e n t a b i o n ef tte v a r i o u s c o u n t r i e s on t h e R e p a r a t i o n Commission i s d e f i n i t e l y l a i d down i n t h e T r e a t y of Peace with Germany, i t i s s u g g e s t e d t h a t t h e v a r i o u s Committees and Sub-Committees p r o ­ posed i n t h i s r e p o r t should be firmed and s h o u l d a c t fin t h e s**me p r i n c i p l e s . ( f ) As i t i s n e c e s s a r y t o e n s u r e u n i t y of a c t i o n on t h e q u e s t i o n of r e p a r a t i o n , i t i s ' s u g g e s t e d t h a t t h e principle p r i n c i p l e s h o u l d he e s t a b l i s h e d t h a t no N a t i o n a l o r g a n i z a t i o n h a s t h e r i g h t t o send M i s s i o n s or E m i s s a r i e s i n t o enemy c o u n t r i e s and. t h a t any M i s s i o n s e n t out must go f o r t h a s t h e mandatory of t h e R e p a r a t i o n Commission a s a w h o l e . ' (g). A f t e r an e x a m i n a t i o n of t h e q u e s t i o n of a p p o i n t Jtments, a l l o w a n c e s , e x p e n s e s , e t c . for- t h e S t a f f , i t was d e c i d e d t h a t t h i s q u e s t i o n was o u t s i d e t h e competence of t h e p r e s e n t Committee. The Committee, however, d e s i r e t o express t h e o p i n i o n t h a t as f a r as p o s s i b l e , , a uniform s c a l e should be a d o p t e d , and s h o u l d be announced a s e a r l y a s p o s s i b l e i n o r d e r t h a t s t a f f may be'appointed.. ' ' , I ' 1 SCHEME, OF ORGANIZATION. . . The s c h e d u l e a t t a c h e d t o t h i s r e p o r t shows t h e scheme of o r g a n i z a t i o n of t h e R e p a r a t i o n Commission s u g g e s t e d , I t con­ s i s t s of a G e n e r a l S e c r e t a r i a t and S e r v i c e s , which w i l l u s u a l l y f u n c t i o n t h r o u g h s e v e r a l s e c t i o n s . An a t t e m p t h a s been made t o b r i n g down t o a mimlmum t h e number of - s u b d i v i s i o n s n e c e s s a r y , and i t i s c o n s i d e r e d t h a t t h e s e have been r e d u c e d a s f a r as. p o s s i b l e . A. SECRETARIAT,., . The S e c r e t a r i a t s h o u l d be a Committee of t h e S e c r e t a r i e s of t h e d i f f e r e n t N a t i o n a l o r g a n i z a t i o n s which would meet a t r e g u l a r and f r e q u e n t i n t e r v a l s f o r t h e d e c i s i o n of a l l p e n d i n g q u e s t i o n s . . The Commission s h o u l d nominate a G e n e r a l S e c r e t a r y , who need n o t n e c e s s a r i l y be one of t h e members of the. Committee of S e c r e t a r i e s . . . This O f f i c i a l s h o u l d p r e s i d e o v e r t h e Committee of S e c r e t a r i e s ' o n t h e u n d e r s - t a n d i n g t h a t the H a t i o n to which ho - b e l o n g s i s o n l y en *. t i e d t o one v o t e t o n t h e Committee , The G e n e r a l S e c r e t a r y s h o u l d have t h e d i r e c t i o n of t h e S t a f f I n a l l r o u t i n e m a t t e r s j i n "all o t h e r m a t t e r s h e should b e r e q u i r e d t o c o n ­ s u i t t h e Committee Of S e c r e t a r i e s t o whom he would be r e s p o n s i b l e . J The G e n e r a l S e c r e t a r i a t would b e r e s p o n s i b l e f o r a l l t h e o r d i n a r y S e c r e t a r i a l d u t i e s of t h e Commission, p r e p a r a t i o n - o f A g e n d a , ' M i n u t e s , E s t a b l i s h m e n t , R e g i s t r y , Correspondence and L i a i s a n w i t h o t h e r I n t e r n a t i o n a l b o d i e s . I t ' e c o n s i d e r e d t h a t i t should be d e f i n i t e l y e n u n c i a t e d t h a t a l l c o r r e s p o n d e n c e w i t h enemy powers s h o u l d be d e s p a t c h e d and r e c e i v e d b y t h e G e n e r a l S e c r e t a r i a t . N a t u r a l l y , t h e d e s p a t c h and r e c e i p t of t h e c o r r e s p o n d e n c e of each Of t h e N a t i o n a l o r g a n i s a t i o n s i s n o t i n c l u d e d i n t h i s recommendation and i t i s c o n s i d e r e d t h a t d i p l o m a t i c p r i v i l e g e s would n a t u r a l l y be g r a n t e d f o r t h i s c o r r e s p o n d e n c e . I t i s recommended t h a t t h e General S e c r e t a r y s h o u l d J b e a p p o i n t e d by the...Commission f o r one y e a r , b u t t h a t h e should be e l i g i b l e f o r r e - a p p o i n t r n e n t . B, SERVICES AND DIVISIONS, --Each of. t h e I n t e r - A l l i e d S e r v i c e s of t h e Commission s h o u l d be c o n t r o l l e d by a Committee c o n s i s t i n g of art the Heads of the Btohnioal s e r v i c e s oonoerned of t h e - - various National organisations. 1 (', Cj The Chairman of. each Committee should he appointed by the Commission for one year hut should be e l i g i b l e for re-appointment. He should have a t t a c h e d to him an E x e c u t i v e O f f i c e r (who might i n c e r t a i n c a s e s bs the S e o r e t a r y ) , whose duty i t would be to s e e t h a t the d e c i s i o n s of the Committee were c a r r i e d out and t h a t the routine work was performed. : In order to secure the proper type of p e r s o n n e l and c o n t i n u i t y of p o l i c y i t i s suggested t h a t the a p p o i n t ­ mafc of t h o s e o f f i c i a l s should be f o r a c o n s i d e r a b l e p e r i o d . I t i s s u g g e s t e d t h a t the Committees c o n t r o l l i n g the work of t h e D i v i s i o n s organised for t h e purpose of carrying out the work of t h e S e r v i c e should be on the same model and t h a t t h e i r Chairman and o f f i c i a l s should be appointed i n the same manner and under the same c o n d i t i o n s . The Committees and Sub-Committees should meet r e g u l a r l y a t f i x e d d a t e s . . ( I ) FINANCE SERVICE.The Finance Service should c o n s i s t o f 3 D i v i s i o n s - ­ (a) treasury Division. This D i v i s i o n should b e . c o n c e r n e d p r i n c i p a l l y with matters concerning Bonds Transfers of S e c u r i t i e s , Shares and Enemy D e b t s t h e p r e s e n t a t i o n of expenses of the Armies of Occupation,, the d i s t r i b u t i o n o f the Indemnity and g e n e r a l f i n a n c i a l q u e s t i o n s ; 0 (b) C a s h i e r s D i v i s i o n . This D i v i s i o n would be r e s p o n s i b l e f o r the r e c e i p t , s a f e c u s t o d y and i s s u e of Bonds, the r e a l i s a ­ t i o n of s e c u r i t i e s and the c u s t o d y and disbursement o f cash d e p o s i t e d with the Commission: (o) Accounts D i v i s i o n . This D i v i s i o n would be r e s p o n s i b l e f o r the keeping o f the General Acoount and the Debit an& Credit of each Power. (II) VALUATION SERVICE. This should c o n s i s t of two d i v i s i o n s ­ fa) Claims D i v i s i o n . (1) (2) S u b - D i v i s i o n Claims f o r personal damage " Claims f o r damage t o p r o p e r t y . fb) D i v i s i o n f o r V a l u a t i o n of g o o d s , s e c u r i t i e s and s h a r e s and Public Debt i n oeded t e r r i t o r i e s . I t i s suggested that t h i s D i v i s i o n should be o r g a n i s e d i n t o 2 S u b - D i v i s i o n s . N (III) (l) f o r the v a l u a t i o n of goods* (2) for the v a l u a t i o n o f s e c u r i t i e s , c o n c e s s i o n s &o. RESTITUTION AND REPARATION IN KIND SERVICE. This Service should c o n t a i n 5 D i v i s i o n s . fa) d e s t i t u t i o n and Reparation of o b j e c t s of a r t i s t i c , h i s t o r i c or s c i e n t i f i c interest ( t h e s e , t w o f u n c t i o n s are combined because the f i r s t has n a t u r a l l y a l i m i t e d duration and the -second adheres c l o s e l y to the f i r s t . ' (h) -4­ ("b) A g r i c u l t u r e ' and A g r i c u l t u r a l Machinery D i v i s i o n . (c) Labour and S u p p l i e s D i v i s i o n ( t o include i n d u s ­ t r i a l , m a c h i n e r y , c o n s t r u c t i o n m a t e r i a l and a l l r e p a r a t i o n commodities not covered by any o t h e r s e c t i o n ) . (d) M e r c a n t i l e Marine and Cables river-craft). (including 11 4 (e) Coal and Chemical D i v i s i o n . This Division to c o n s i d e r a l l q u e s t i o n s r e l a t i n g t o c o a l and i t s d e r i v a ­ t i v e s , d y e - s t u f f 3 , chemical p r o d u c t s and drugs. (IV) LEGAL SERVICE. I t i s coneidered t h a t t h i s Service should c o n s i s t of a Committee comprised of t h e L e g a l e x p e r t s of t h e v a r i o u s c o u n t r i e s concerned w i t h a s m a l l S e c r e t a r i a t . I t s f u n c t i o n would h o . p r i n c i p a l l y t o i n v e s t i g a t e a l l q u e s t i o n s concerning t h e i n t e r p r e t a t i o n o f , t h e r e p a r a ­ t i o n c l a u s e s of t h e T r e a t y , d i s p u t e s t h a t may a r i s e and f u t u r e s a n c t i o n i n c a s e s of n o n - f u l f i l m e n t of o b l i g a t i o n s under the T r e a t y . v. OTOHMATIOff SERVICE. T h i s s e r v i c e s h o u l d be d i v i d e d i n t o 3 D i v i s i o n s (a) (bJ (c) :­ Political Financial Economic I t i s c o n s i d e r e d t h a t t h i s S e r v i c e i s of supreme importance f o r the proper f u n c t i o n i n g of t h e Commission and t h a attainment of t h e maximum r e p a r a t i o n . Its f u n c t i o n would be to make a l l n e c e s s a r y i n v e s t i g a t i o n s and c o l l e c t a l l p o s s i b l e s t a t i s t i c e r e l a t i n g t o the f i n a n c i a l and economic s i t u a t i o n dnd the a b i l i t y t o make payment and the F i s c a l system of t h e Central P o w e r s . It should consider f u r t h e r the needs of the enemy powers f o r . food and raw m a t e r i a l and the e f f e o t oh t h e i r economic system of t h e demands made upon them i n the way of reparation. 1 SCHEDULES. General S e c r e t a r i a t P r e p a r a t i o n of Agenda and Minutes Administration E s t a b l i s h m e n t and A c c o u n t s . Registry Correspondence L i a i s o n with o t h e r I n t e r n a l B o d i e s . SeTVioes. D i v i s i o n s . ." I. 2. F i n a n c i a l S e r v i c e A. B. C. V a l u a t i o n S e r v i c e A, Treasury. Cashier. Accounts. V a l u a t i o n of Claims ( l ) For P e r s o n a l Damage, (2) For, Damage t o P r o p e r t y , B. V a l u a t i o n of Enemy P r o p e r t y , ( l ) Goods, (2) S e c u r i t i e s and D e b t s . 3. S e r v i c e of R e s t i t u t i o n A. R e s t i t u t i o n and S p e c i a l and R e p a r a t i o n i n k i n d . Reparation. B. A g r i c u l t u r e and A g r i c u l t u r a l Machinery. C Labour and S u p p l i e s . S h i p p i n g and C a b l e s . E. Coal and C h e m i c a l s . Legal S e r v i c e , Information Service. A. P o l i t i c a l B. F i n a n c i a l C. Economic­