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(It was agreed that the first part of the terms of reference under the heading "Transitory Measures" should be referred to the Supreme Economic Council, and that the permanent subjects mentioned in the report should be referred to a special Commission of the Preliminary Peace Conference.

It was further agreed that the five signatories of the report of the Drafting Committee should meet to consider and report as to the procedure and method of work of the Economic Commission, and on its composition, having in mind Lord Milner's request that the Dominions and India should be accorded separate representation and that the small Powers should also be represented.)

(At this stage MM. Klotz and Clementel withdrew. M. Bernhoft, Danish Minister in Paris, and M. Clausen, Attaché of Danish Legation in Paris, entered the Council Chamber.)

5. M. PICHON said he had been asked in the first place to distribute a letter, dated 6th February, 1919, addressed by M. H. A. Bernhoft, the Danish Minister in Paris, to M. Clemenceau, President of the Peace Conference. (For full text see Annexure "B.")

Readjustment of the Danish-German Frontier

A mémoire by Mr. Jonas Collin, Professor at the Academy of Surgery in Copenhagen, one of the representatives of the Central Schleswig Committee, had also been forwarded to the Secretariat-General and would be distributed. The conclusion reached in this mémoire was that Central Schleswig up to the SliDanevirke-Husum frontier should be ceded to Denmark.

He would now call on M. Bernhoft to make a statement.

(a) Statement by M. Bernhoft

M. BERNHOFT then read the following statement. (See Annexure "C.")

MR. LANSING enquired up to what line the German troops should be withdrawn, if such a proposal were agreed to.

M. BERNHOFT replied that there were five German Garrisons at present in Northern Schleswig, and he thought the German troops should be withdrawn to the Southern line of Central Schleswig.

MR. LANSING enquired who would maintain order in these territories after evacuation by the German troops.

M. BERNHOFT expressed the view that the population would be able to govern themselves to a certain extent. He thought that the German civil authorities and priests and schoolmasters should be allowed to remain, because the people themselves were strong enough to keep these down. The Danish workmen in this region were so strongly organized that small controlling Committees had already been appointed to supervise the work of the Landrats and of the local Police Officials. The only danger spot was at Flensbourg, a town of 67,000

inhabitants, which contained anarchical elements, and there a strong military force might be required to maintain order.

MR. LANSING further enquired whether any arrangement was contemplated for the assumption of part of the German National debt. M. BERNHOFT replied that Denmark had hoped that if the country were restored to Denmark, it might come back without a debt.

MR. LANSING asked whether that would be an inducement for the German population to remain and form part of Denmark.

M. BERNHOFT agreed that that would probably be the case. (The Danish representative and the Experts withdrew.)

MR. BALFOUR said he had intended, as in previous cases, to move a resolution for the appointment of a new Committee to enquire into the Danish claims. Mr. Lansing had, however, suggested to him that this enquiry could best be carried out by the Committee already occupied in considering Belgian questions. He wished, therefore, to propose the following resolution:

(b) Committee on Belgium to Report on Danish-German Frontier

It is agreed that the questions raised in M. Bernhoft's statement on the Danish territorial interests in the peace settlement shall be referred for examination, in the first instance, to the Committee now examining the Belgian problems.

It shall be the duty of the Committee to reduce the questions for decision within the narrowest possible limits, and to make recommendations for a just settlement.

The Committee is authorised to consult the representatives of the peoples concerned.

M. PICHON said he had no objection to make to the proposal, except that the Kiel Canal question was involved. This was a very important matter, and he felt some doubt as to whether the existing Belgian Committee were the best prepared to advise on that question.

MR. BALFOUR said he had reason to believe that the members of the Belgian Committee were fully qualified to report on the question to be referred to them.

(It was agreed that the questions raised in M. Bernhoft's statement on the Danish territorial interests in the peace settlement shall be referred for examination, in the first instance, to the Committee now examining the Belgian problems.

It shall be the duty of the Committee to reduce the questions for decision within the narrowest possible limits, and to make recommendations for a just settlement.

The Committee shall be authorised to consult the representatives of the peoples concerned.)

6. MR. BALFOUR said that he understood the statement of the Albanian claims would be heard on the following day. He wished to give notice that he proposed to submit to the Conference a resolution on the general conduct of business, which would be circulated to the Conference that evening. He thought the time had now come to take a survey of the immediate. task of the Conference.

Agenda for
Next Meeting

(It was agreed that the following questions should be discussed at the meeting to be held at 3.0 o'clock on Saturday afternoon, the 22nd February, 1919:

1. General conduct of business.

2. Statement of the Albanians' Claims. (Hearing of Albanian representatives.)

(The Meeting then adjourned to Saturday, 22nd February, 1919, at 3.0 p. m.)

PARIS, 22nd February, 1919.

Annexure "A"

The President of the Commission Charged With Laying Down the Programme of the Economic Commission of the Peace Conference to the President of the Peace Conference

The Commission named on the 27th January," for the purpose of drawing up a programme of questions of which the study and preparation were to be entrusted to the Economic Commission of the Peace Conference, has carried on, between the 5th and the 11th of February, the exchanges of view which have resulted in the scheme which it has the honour to lay before you herewith.

This draft has been elaborated with the double object in view of exactly defining the elements of the task which will devolve upon the Economic Commission, and, while ensuring any necessary cooperation, of also preventing the Commission's functions from encroaching upon those of other special Commissions: the Financial Commission, the Commission on Reparations, on Transport, on the League of Nations, etc.

Along with this draft which has received the unanimous assent of the delegates of the five Powers represented, it has seemed useful to send you, as documents, the preliminary drafts worked out by the French, English, and American delegates.

Translation from French text supplied by the editors.

See BC-11, vol. 1, p. 730.

'French text, arranged in parallel column with English text, not printed.

If the programme, which is proposed to the Conference, receives its approval, it would be desirable that the Economic Commission be constituted without delay, since its labours, which require the collaboration of many technical subcommissions, are concerned as much with the period of transition as with the permanent order following the war.

CLEMENTEL

[Enclosure to Annexure "A"]

Draft Terms of Reference to the Proposed Economic Commission of the Peace Conference

I. TRANSITORY MEASURES

To consider what economic measures, if any, should be taken in common during the period of reconstruction following the war, with a view to ensuring:

a) The due supply of materials and other commodities necessary for the restoration of the devastated areas;

b) The economic restoration of the countries which have suffered most from the war;

c) The supply of neutral and ex-enemy countries without detriment to the supply of the needs of the Allies and Associated countries. II. PERMANENT COMMERCIAL RELATIONS

To consider what common measures are possible and desirable with a view to the removal of economic barriers and the establishment on an equitable basis of the principle of Equality of Trade Conditions in International Commerce.

Under this heading will arise such questions (among others) as customs regulations, duties and restrictions; the treatment of shipping, including port facilities and dues; unfair methods of competition, including false trade descriptions and indications of origin, "dumping", etc.; and the exceptions and reservations, transitory or otherwise, which may be found necessary to meet special circumstances.

III. CONTRACTS AND CLAIMS

To consider:

(1) What provision should be made with regard to pre-war contracts agreements and commercial obligations to which subjects or citizens of belligerent States were parties;

(2) Whether claims should be admitted on either side for damage or injury arising out of the requisition, liquidation, sequestration or sale of enemy property or businesses, or the treatment or use of patents, trade-marks, trade descriptions, or designs or copyrights, or regulations relating to Trading with the Enemy, and, if so, on what basis.

IV. Ex-ENEMY ALIENS

To consider what common action, if any, should be taken by the Allied and Associated Governments to prohibit or regulate the carrying on either individually or through Companies, of certain businesses and occupations by ex-enemy aliens during the period immediately following the war.

V. ABROGATION OR REVIVAL OF ECONOMIC TREATIES

To consider what Treaties and Conventions of an economic character to which Enemy States were parties should be revived or abrogated respectively.

(Under this heading will be considered, among others, the Conventions relating to Industrial Property, Copyright, Posts and Telegraphs, etc.)

NOTE.

The Economic Commission, before formulating proposals as to any economic questions having a special aspect in regard to which other Commissions have been or may be set up by the Peace Conference, should consult the competent Commission; and on the other hand such other Commissions should, in the same circumstances consult the Economic Commission before formulating any proposal relating to one of the above classes of questions which fell within the scope of the Economic Commission.

CLEMENTEL
BARUCH
CRESPI

H. LLEWELLYN SMITH
FUKUI

Annexure "B"

MONSIEUR GEORGES CLEMENCEAU,

President of the Peace Conference.

DANISH LEGATION, PARIS, 6th February, 1919.

MR. PRESIDENT: The triumph of the principles proclaimed by the Allied and Associated Powers having been assured by the victory of their Armies, the Association of Danish Electors in Northern Schleswig, led by their former members in the German Legislative Assembly, proclaimed, on behalf of the Danish population of Northern Schleswig, their desire, unchanged since 1864, of rejoining Denmark, at a Meeting held at Aabenraa on the 17th November last."

'See vol. II, pp. 450 ff., and infra.

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