INSTANCES OF OUTSIDER COMPETITION AND SPECIAL AUTHORISATIONS

The Committee considered the lists showing the authorised fighting prices which had been reported to the Committee since the last Meeting.

PLATES

Mr. Todd assured Mr. Maulick that the Central Bureau had particulars of all instances of special prices quoted by the American Group since the present arrangements came into force, and Mr. Maulick undertook that the Central Bureau would advise the Chairman of the London Committee daily of the special authorisations which they sanctioned for orders or enquiries. Particulars of special authorisations by the Central Bureau from 21st April to 9th June were handed to the Chairman by Mr. Maulick.

At the request of the Continental Group the American representative undertook to enquire of New York in regard to the order of 2,300 tons for Kockums in May which was originally stated to have been taken at $1.90 and was later reported as $1.872.

MERCHANT BARS

As the prices authorised for Merchant Bars appeared to be unnecessarily low in some instances, it was agreed that the Comptoir be asked to reconsider the question of the prices down to which authorisations were being given.

TUBE STRIP AND OTHER HOOP AND STRIP

It was agreed that the Comptoir be asked to show the authorisations for Tube Strip separately from those for Other Hoop and Strip, since they were the subject of separate Agreements.

ALL PRODUCTS

It was agreed that for the purpose of their returns of special prices, as submitted to the London Committee, the Comptoirs be asked to show in each instance the official price as well as the special price; or, alternatively, the official price and the amount of the reduction therefrom which had been authorised.

PLATES

In regard to the price of £9.5.0 per ton c. i. f. for South Africa which the American Group had been asked to observe, it was agreed that this matter be deferred until Mr. Todd had had an opportunity of discussing the position in South Africa with Mr. J. G. Finlay, Sales Manager of ISCOR, who had now arrived in this country.

HOOP AND STRIP

In regard to the sale by the American Group of 1,640 tons of Baling Hoops to Karachi at 15/- below the agreed price, it was reported that the Cartel had asked that the appropriate clause in the Agreement be applied to the American Group. It was agreed that the application of this clause was not a matter on which the London Committee had jurisdiction and that the Comptoir itself would therefore require to take the necessary steps.

The American representative reminded the Committee that his Group had undertaken to keep out of the Indian market only for thirty days, and that as they are now in deficit they would presumably quote the Continental price.

WIRE RODS

The American representative raised the question of his Group's participation in the Wire Rod business. It was agreed that the E. I. A. representative on the Committee should arrange with M. Brichant that the I. W. R. S. would make arrangements with Iweco for an opportunity being offered to the American Group to sell their quota to Iweco members on the understanding that the American Group would refrain from selling to parties who are not in Iweco.

ZONES OF INFLUENCE

The E. I. A. representative stated that his Group did not consider that the American Group should be entitled to fix the price in markets where they did not at present sell.

OPERATIONS OF THE LONDON COMMITTEE

Arising out of the previous matter the American representative stated that his Group took the view that they were interested in world markets and did not agree to being restricted in any country, and he also submitted the following resolution which he had received from New York in regard to the arrangements which had been made between the London Committee and the Presidents of the Comptoirs in Brussels on the 11th May 1939:

"The American Group take exception to the wording of the Minutes of the seventh Meeting between the London Committee and the Presidents of the Comptoirs, held at Brussels on May 22nd, so far as they relate to the method of operation in regard to the power to authorise special prices under each product. The London Agreement of April 18th provided that the sole power to authorise special prices was vested, for all Groups, in the London Committee. The wording of the minutes would indicate that for all practical purposes the power to authorise special prices is transferred back to the individual Comptoirs.

"As it is felt that this wording is not in accordance with the London Agreement, the American Group wish to record their understanding that the London Committee has the sole power to authorise special prices. In this respect the Comptoirs or the American Group are only authorised to make recommendations to the London Committee for their final approval. Likewise, so far as the American Group is concerned, the privilege of requesting special authorisations applies to all countries and is not limited to those countries in which the American Group are chiefly interested.

This resolution was considered by the Committee and the American representative was requested to explain to the S. E. A. that the arangements made by the London Committee in regard to special price authorisations do not involve any surrender of the control vested in the London Committee or any departure from the terms of the Agreement of 18th April. It had however been found necessary in practice to exercise through the Presidents of the Comptoirs the power to authorise special prices until further notice under clearly defined conditions which may be varied at any time by the London Committee. These conditions involve inter alia immediate notification of all special price authorisations to the London Committee as well as tend-day returns of all sales and deliveries covering markets, prices and tonnage, thus enabling the London Committee to exercise its powers of control.

DIFFERENTIAL FOR QUALITY

It was agreed that on account of their excess position the American Group should be asked to apply the extra for quality in the case of TANK PLATES and MERCHANT BARS.

EXTRAS AND CURRENCY

It was agreed to defer consideration of the question of extras which had been discussed between the Central Bureaux and the American representatives in Paris on 13th June, as the American representative was still awaiting a reply from his principals. The question of the currency in which quotations should be issued was also deferred since this matter was dependent upon the decision

as to extras.

NORTHEAST ASIA

There was submitted to the Committee particulars of the statistics which had been exchanged between the Groups for various products in respect of business taken in the free territory of Northeast Asia. In regard to a request from the Semis Comptoir that the prices given by the American Group should be given on the basis of c. i. f. Japanese ports in order to facilitate comparison with the other Groups prices, the American representative stated that his Group could not give these particulars as buyers made their own shipping arrangements.

NEXT MEETING

It was agreed that the next meeting should be held at Liége on Monday, 17th July, at 6 p. m.

N. B.-Les chiffres inscrits en marge correspondent à ceux de la pagination originale.

EXHIBIT S-106

[Private and confidential-tenth meeting]

E. I. A./U. K./U. S. A. AGREEMENT-MINUTES OF THE MEETING OF THE LONDON COMMITTEE HELD AT THE HOTEL DES BOULEVARDS, BOULEVARD DE LA SAUVENIÉRE, LIÉGE, ON MONDAY, 17TH JULY 1939, AT 6 P. M.

Present:

Mr. R. M. Peat (In the Chair).

Mr. H. Dieudonné, Continental Group.

Mr. I. F. L. Elliot, British Group.

Mr. Wm. B. Todd, American Group.

In attendance:

Mr. V. Malcolm

Mr. C. R. Wheeler,

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 27TH JUNE 1939

The Minutes of the previous meeting, held on the 27th June 1939, were confirmed and were signed by the Chairman.

OBJECTION BY THE S. E. A. TO THE MINUTES ON PAGES 51 AND 52

The American representative stated that his Group could not agree to the Minute of the previous meeting recorded on pages 51 and 52, in regard to the manner in which the London Committee was operating, as they still maintain that the London Committee had delegates its authority, which it had no power to do. The Committee regretted to note the American Group's views but still held the opinion that it had not delegated its authority, having in fact only put into operaion the most suitable machinery for carrying out its duties, and the American representative was asked to take this matter up with his Group again on his return to the United States.

REVISED QUOTA FIGURES FOR THE PERIOD FROM 21ST APRIL 1939

The Committee considered further the report of Messrs. Peat, Marwick, Mitchell & Co. submitted at the previous meeting in regard to the calculation of the revised quota figures. In regard to the points raised therein:

(a) the elimination of the shipments to the Kwantung Peninsula was approved;

(b) it was agreed that fabricated shapes did not come under the agree ment;

(c) the Committee agreed to the adoption of the basis used in regard to the ascertainment of the revised British figures for shapes and plates, the American representative's approval on this point being given subject to any comments which he might receive from New York after the report had been considered there.

EXCESS/DEFICIT POSITION ON PLATES

The American representative stated that he had submitted to his Group the Committee's request that they should apply the differential for quality in the case of tank plates in view of their excess position but his Group were not able to agree to this procedure in view of the nonmember competition and considered that the Comptoir should quote lower prices in order to meet that competition.

It was agreed that in order to achieve this end, the American Group should report all business which appeared likely to go to nonmembers, so as to assist the other Groups to take the business while the Americans were in excess.

It was agreed that the American Group should maintain the following prices while in excess, on the understanding that the other Groups would meet nonmember competition:

The American representative reported that the business of 1,100 tons for Lindholm, Sweden, which had been reported as being taken below the official price, had been taken by an American member company at the official price of $1.94 c. i. f.

INSTANCES OF NON MEMBER COMPETITION AND SPECIAL AUTHORISATIONS

The Chairman submitted the list of special authorisations reported since the date of the last meeting.

It was agreed that the Comptoirs should be reminded that the official prices should be shown on their returns.

It was reported in regard to the Committee's request that special authorisations for Tube Strip should be shown separately from those for other Hoop and Strip, that the Comptoir had replied that the special authorisations reported so far referred only to Other Hoop and Strip, and that as there is no tariff for Tube Strip the prices quoted therefor are fixed for each individual case.

SALES STATISTICS BY COUNTRIES

In regard to the sales statistics, by countries, to be exchanged through the Chairman of the Committee, it was reported that the American Group could not readily furnish their particulars more frequently than monthly, and it was agreed therefore that the sales, by countries, of the other Groups should also be reported monthly in future instead of for ten-day periods.

PLATES-PRICES IN SOUTH AFRICA

The American representative reported that he had discussed this matter with Mr. Finley of ISCOR, but had been unable to reach any agreement, as his Group still found it necessary to quote £8.18.6 for Government business to meet nonmember competition.

It was agreed that in view of the American excess position and the ISCOR prices, it was essential that the American Group should adhere to the price of £9.5.0 c. i. f. and that nonmember competition should be met by special authorisations.

HOOP AND STRIP

In regard to the sale of 1,640 tons to Karachi, it was submitted by the American Group that orders had previously been taken at cut prices by E. Loeffler for the German Group and by Suren for the Cartel and a reply from the Comptoir was read in which they refuted these statements and reported that they had no knowledge of Messrs. Loeffler.

The Committee noted the submissions made by the American Group, but did not consider that the explanation which they put forward was satisfactory. As it was necessary that this matter should be examined further, the American representative was asked to take it up with his Group on his return to the United States.

EXTRAS AND CURRENCY FOR QUOTATIONS

This matter was again deferred as the American representative stated that he was still awaiting a reply from New York.

WIRE RODS

Arising out of the previous Minutes on this matter (page 50) it was reported that no agreement had yet been reached between the Comptoir and the American representative. It was agreed that the Comptoir must:

(a) insist on their customers buying through the American Group up to their 1934 quota, and

(b) advise their customers that they may make further purchases from the American Group, if they so desire up to the 1936 quota ;

the American Group to undertake not to supply any other customers.

It was agreed that in order that this agreement could be carried out, it would be necessary for the Comptoir to furnish the American representative with a list of the IWECO members and the Comptoir's other customers.

The E. I. A. representative stated that he understood that the United States Steel Products had made a one-year contract with Flandria, one of the Dutch outsiders, and he asked for confirmation of this matter. The American representative undertook to enquire of his Group.

NORTH EAST ASIA

The Committee noted the statistics in regard to this territory exchanged since the last meeting.

EXHIBIT S-107

(Wm. B. Todd-Brettenham House, Lancaster Place, Strand, London, W. C. 2) AMERICAN REPLIES TO MINUTES OF LONDON COMMITTEE MEETING, MARCH 14TH, 1939 Plates:

European Market: We are willing to protect Cartel, but do not approve method suggested. We are willing Cartel advise price they will quote to eliminate non-members and we will protect.

North China, Korea, Manchuria, Japan (North East Asia): Must be excluded from Cartel arrangements as far as quota control, payment penalties, bonuses concerned.

South Africa: Unwilling to accept recommendations of the Committee until something final done to eliminate Proclamations No. 1335 and 218 which discriminate against U. S. A., our Members as well as non-members. As soon as we are put in position of other Cartel members will further discuss matter.

Canada: Will not agree to increase differential 10 cents (Making 204.) Merchant bars:

European Markets: We agree to quote ourselves out.

North East Asia: Same applies as on Plates.

Semis:

European Markets: We will advise price we think necessary to eliminate non-members.

North East Asia: Same applies as on Plates.

Shapes:

European Markets: We agree to quote ourselves out.

North East Asia: Same applies as on Plates.

Wire rods: All Markets: We accept.

II A 20.b Relations with American Producers. 20/3/1939.

EXHIBIT S-108

(Private and confidential)

MINUTES OF MEETING OF JOINT COORDINATING COMMITTEE OF BRITISH IRON AND STEEL FEDERATION AND ENTENTE INTERNATIONALE DE L'ACIER, HELD AT THE SAVOY HOTEL, LONDON, ON THURSDAY, JULY 2, 1936, at 9:30 A. M.

Present Sir Andrew R. Duncan in the chair.

For the British Iron and Steel Federation:

Mr. J. Craig

Mr. A. Dorman