price under £13.10.0 in any circumstances without prior agreement of the British and American Groups. It was reported that a request had been made to the American Group for their figures for 1934 and 1936 by individual markets, the need for which figures was stated to be urgent. The American representative was asked to expedite his Group's returns of these figures. In regard to CANADA, it was reported that some of the Members of the British Group were complaining that the prices of hoop and strip imported into Canada were some £4 lower than the Cartel prices, which, it might be, were too high, and that if the American Group would furnish particulars of the prices which they were officially quoting in Canada the matter could be discussed and an arrangement come to. MERCHANT BARS It was agreed that the American Group should a. withdraw from the EUROPEAN MARKETS, and b. propose prices for the WESTERN HEMISPHERE (excluding ARGENTINE), and for CHINA, JAPAN, MANCHUKUO, and CHOREA, the other Groups to have the right to quote 7/6d. gold below these prices as the differential between open hearth material and Thomas quality, so long as the Americans are in excess. It was remarks that the merchant-bar figures of the Comptoir covered small sections, which items were, however, included in shapes in the American figures, but it was agreed that so long as the running figures were in line with the basis of the quota figures this point was not of significance. SEMIS In view of the large American excess, which already covers their quota for a long period ahead, it was agreed that the American Group should refrain from quoting except with the permission of the Comptoir. Mr. Todd was requested to arrange for reference to the Comptoir in all cases where it was considered necessary for the American Group to submit a quotation. The American Group indicated that it would be necessary for the Cartel to underquote the American price of $30 f. o. b. They suggested a differential of $2 per ton. It was pointed out that consideration would have to be paid to the relative rates of freight. SHAPES (JOISTS, CHANNELS AND BROAD FLANGED BEAMS) It was agreed that so long as the American Group are in excess the Cartel be allowed to underquote American prices by 7/6d. gold per ton for Thomas quality. WIRE RODS It was noted that while the American Group were substantially in deficit an almost equal tonnage had been secured by American outsiders. It was agreed to recommend to the Comptoir that the American Group be permitted to reduce their prices by 10/- sterling per ton below the Cartel prices while they are in deficit, in order that they may fight the non-Members' competition. TUBE STRIP In view of the large nonassociated Members' tonnage shown at the end of December, the American Group were asked to examine the position with a view to making recommendations to deal with this matter. SHEETS In regard to black sheets, it was agreed, in view of the excess in the American figures, that the Committee recommend to the American Group, in conjunction with the Comptoir, to arrange for an increase in price by the Americans or a reduction in price by the Comptoir, or alternatively for the Americans to keep out of certain markets, their decision to be reported back to this Committee. No recommendation was made in regard to galvanised sheets. NEXT MEETING It was agreed that the next meeting should be held at the Comptoir Siderurgique Offices at 3 rue Paul Cezanne, Paris, on Wednesday, 29th March, at 9:30 a. m., when it is hoped that the statistics to the end of February would be available, subject to a meeting being held next week if necessary to discuss any information which Mr. Todd had obtained by that time from America in regard to the points which he was submitting to his Group arising out of this meeting. The Chairman asked that any special points for consideration at the next meeting should be submitted to him as soon as possible beforehand for inclusion in the Agenda. EXHIBIT S-98 [Private and confidential-Second meeting] E. I. A./U. K./U. S. A. AGREEMENT-MINUTES OF THE MEETING OF THE LONDON COMMITTEE HELD AT THE COMPTOIR SIDÉRURGIQUE DE FRANCE, 3, RUE PAUL CÉZANNE, PARIS, ON WEDNESDAY, 29TH MARCH 1939 AT 9:30 A. M. Present: Mr. R. M. Peat (in the Chair) M. H. Dieudonné, Continental Group Mr. I. F. L. Elliot, British Group Mr. William B. Todd, American Group In attendance: Mr. H. Craig Mr. Victor Malcolm Mr. T. T. Rush Mr. J. A. Russell Mr. S. J. Summers Mr. W. G. Tubman British Group. Mr. E. Conrot, Continental Group Mr. R. V. Kennard, American Group Mr. J. R. Mackay, Peat, Marwick, Mitchell & Co. CONFIRMATION OF THE MINUTES OF THE MEETING HELD ON THE 14TH MARCH 1939 The Minutes of the previous meeting, held on the 14th March 1939, were formally confirmed and were signed by the Chairman. PLATES The Committee considered the American Group's suggestion in regard to the EUROPEAN MARKETS that instead of withdrawing as resolved at the last meeting, they would advise the Cartel at the price to be quoted to eliminate nonmembers and would protect that price. It was agreed that prices must be fixed by the Comptoir, the American Group to protect these prices while they are in excess. The Comptoir agreed to quote such prices as would meet outside competition and welcomed the advice of the American Group on all occasions as to the price level which would meet outside competition. During the discussion. it was emphasised that, while any Group might query the London Committee's decision because of further information available on which it was desired that the London Committee should reconsider the matter, the Committee's eventual decision must be final, otherwise the Committee was valueless. It was reported that the American Group wished NORTH CHINA, KOREA, MANCHUKUO AND JAPAN to be free from quota control, penalties, and bonuses. The American representative confirmed that his Group also wished prices to be free in these markets and stated that his Group had asked that their proposals be put before the Joint Coordinating Committee. It was agreed that the American suggestion was without the powers of the London Committee. The Committee reaffirmed (the American representative dissenting) the decision which they had made at the previous meeting, and the matter was referred to the Joint Coordinating Committee. It was reported that the American Group were unwilling to accept the Committee's recommendation in regard to SOUTH AFRICA (i. e. that Gazette prices should be quoted until further notice) while Proclamations Nos. 1335 and 218 continue in force. It was resolved that the Committee adhere to their previous Minute and that the Comptoir be asked to examine this matter further and report to this Committee. It was reported that the American group do not agree to the British Group's differential in CANADA being increased from 10 cents to 20 cents per 100 lbs. The British Group stated that they already had authority from the Comptoir, which had jurisdiction in this matter, and that they therefore proposed to act on that authority. It was resolved that the Minute of the previous meeting be confirmed and that the American Group be requested to adhere, in accordance with the agreement, to the prices agreed with the Comptoir. TUBE STRIP It was reported that as a special arrangement already exists between the Cartel and the American Group in regard to CANADA the Cartel desired that an arrangement should now be settled in regard to the OTHER MARKETS. On behalf of the British Group a request was made that full particulars of the existing arrangement in regard to Canada be furnished to this Committee. This was agreed and further consideration was deferred until the next meeting. OTHER HOOP AND STRIP (HOT ROLLED) The Committee noted the terms of the memorandum which had been received from the Cartel in regard to the acceptance of an order in EGYPT at £13.10.0 per ton as discussed at the previous meeting. In regard to the Cartel's request for full protection from the American Group in Egypt, the American representative reported that he had received a cable to the effect that his Group would adhere to the price of £13.10.0 per ton but could not protect it. A suggestion was reported from the Cartel that as the American Group's tonnage in Hoop and Strip refers almost exclusively to Canada, the arrangement with the Americans should be broken up into one agreement for CANADA and one agreement for the whole of the OTHER MARKETS. It was agreed that this matter was not within the competence of the London Committee and that it be referred to the Groups for consideration. MERCHANT BARS It was reported that in regard to the EUROPEAN MARKETS the American Group, instead of withdrawing, were prepared to protect the Cartel's quotations. On the understanding that this meant that the American Group were prepared to protect the official Cartel prices, it was resolved that this suggestion be agreed to on the same basis as had been decided for Plates, i. e., that the prices be fixed by the Comptoir and protected by the American Group while they are in excess and that the Comptoir quote such prices as would meet outside competition, the advice of the American Group being welcome on all occasions as to the price level which would meet outside competition. It was reported that the American Group wished NORTH CHINA, KOREA, MANCHUKUO AND JAPAN to be free from quota control, penalties and bonuses and free as regards prices. It was agreed that the American suggestion was without the powers of the London Committee. The Committee reaffirmed (the American representative dissenting) the decision which they had made at the previous meeting, and the matter was referred to the Joint Coordinating Committee. It was agreed that ALL MARKETS EXCEPT EUROPE should be covered by the decision at the previous meeting that the American Group should propose prices and that the other Groups should have the right to quote 7/6d, gold (12/6d, sterling) per ton below these prices as the differential between open hearth quality and Thomas quality so long as the American Group are in excess. It was agreed that the question of principle of the differential be left over for further discussion. SEMIS The American representative stated that his Group were prepared to advise the Cartel as to the price necessary to eliminate nonmembers in the EUROPEAN MARKETS, and he confirmed that his Group accepted for this market the Minute of the previous meeting, i. e. that the American Group would refrain from quoting except with the permission of the Comptoir. It was reported that the American Group wished NORTH CHINA, Korea, MANCHUKUO AND JAPAN to be free from quota control, penalties and bonuses and as regards prices. It was agreed that the American suggestion was without the powers of the London Committee. The Committee reaffirmed (the American representative dissenting) the decision which they had made at the previous meeting, and the matter was referred to the Joint Co-ordinating Committee. In regard to GREECE the E. I. A. representative urged that the American Group should not supply Semis to D. & A. Starianos of Piraeus and to Caravanos and Papoulias, but the American representative stated that his Group were unable to agree to this, for if they refused to quote, the business would go to outsiders. SHAPES (JOISTS, CHANNELS, AND BROAD FLANGED BEAMS) It was reported that the American Group wished NORTH CHINA, KOREA, MANCHUKUO AND JAPAN to be free from quota control, penalties and bonuses and as regards prices. It was agreed that the American suggestion was without the powers of the London Committee. The Committee reaffirmed (the American representative dissenting) the decision which they had made at the previous meeting, and the matter was referred to the Joint Co-ordinating Committee. It was agreed that ALL MARKETS EXCEPT EUROPE should be covered by the decision at the previous meeting that the American Group should propose prices and that the other Groups should have the right to quote 7/6d. gold (12/6d. sterling) per ton below these prices as the differential between open hearth quality and Thomas quality so long as the American Group are in excess. It was agreed that the question of principle of the differential be left over for further discussion. WIRE RODS The Committee considered certain points raised by the Comptoir arising out of the Minutes of the previous meeting: (a) American Group's right to underquote In regard to the suggestion of the Comptoir that the Committee's recommendation that the American Group be permitted to underquote 10/- sterling per ton while in deficit was too rigid, it was agreed that this was intended only to be a general recommendation. (b) Fighting prices It was agreed that the authorisations of fighting prices should be given to the American Group while they are in deficit. (c) Extra charge for quality The American representative stated that his Group were prepared to apply extra for quality only when they are in excess. (d) Responsibility for American outsiders The American representative stated that he was unable to agree the Comptoir's statement that the American outsiders had 66% of the total cross-Atlantic exports, and he was asked to look into the matter and enquire into the Department of Commerce figures on which the statement was based. In regard to GREECE the E. I. A. representative urged that the American Group should not supply Wire Rods to D. & A. Stavrianos of Piraeus and to Caravanos and papoulias, but the American representative stated that his Group were unable to agree to this, for if they refuse to quote, the business would go to outsiders. SHEETS (a) Statistics On behalf of the Comptoir it was stated that it had always been clearly understood between the parties to the agreement that the actual 1934 and 1936 tonnages should form the quota basis, but that the American representative now maintained that he had been of the view that the American maximum rights had been definitely fixed at 20% for Black and 15.4% for Galvanized. The Comptoir pointed out that the principle that the 1934 and 1936 figures would be the basis had been recorded in many instances, and in this connection reference was made to a letter from Mr. Elliot to Mr. Todd of the 18th October 1938 in which it was stated that the quota percentages were approximate only and would have to be established exactly in accordance with the principles applicable thereto. It was further stated on behalf of the Comptoir that it had now been ascertained that the American Department of Commerce statistics used in respect of the reference years in the absence of the American works figures, included home trade which was not in the current statistics; the reference figures would therefore have to be brought into line with the current statistics, thus reducing the American rights both for Black and Galvanized Sheets, or alternatively the current statistics would have to be brought into line with the reference figures by including the same home trade. A further discrepancy regarding which the Comptoir required an adjustment to a common basis was that, as confirmed by the American representative, the Department of Commerce statistics included all Sheets below 4" whereas the Comptoir figures included Sheets below ". It was remarked that this factor also accounted for an overstatement in the tonnages estimated as having been taken by American outsiders. The Committee noted the position and agreed that the matter be referred to the Joint Co-ordinating Committee. (b) Prices It was reported that the Comptoir's recommendations in regard to Black Sheet prices were that while the American Group were in excess 1. The American Groups retire from the EUROPEAN MARKETS or alternatively quote 25 cents per 100 lbs. higher in Europe. 2. The American Group increase their price to ALL OTHER COUNTRIES EXCEPT CENTRAL AMERICA to the extent necessary to make their prices 15 cents per 100 lbs. above the European c. i. f. prices. 3. As the American gauge differentials in the case of Heavy Sheets result in a greater reduction below the basis than the European differentials, the American gauge differentials be brought into line for all Sheets below 24 gauge. 4. The Comptoir meet all competition encountered at prices lower than those resulting from the application of the above principles and that they be authorised to quote what is necessary to meet this competition. The Committee noted and approved the Comptoir's suggestions in order to rectify the quota position and the American representative stated that he would pass on these recommendations to his Group for their consideration. NEXT MEETING It was agreed that the Committee's next meeting should be held the day before the next Joint Co-ordinating Committee Meeting. EXHIBIT S-99 [Private and confidential-third meeting] E. I. A./U. K./U. S. A. AGREEMENT, 20TH APRIL 1939 MINUTES OF THE MEETING OF THE LONDON COMMITTEE HELD AT STEEL HOUSE, TOTHILL STREET, WESTMINSTER, LONDON, S. W. I, ON MONDAY, 17TH APRIL 1939, AT 4 P. M. Present: Mr. R. M. Peat (In the Chair) M. H. Dieudonné, Continental Group Mr. I. F. L. Elliot, British Group |