In attendance: Mr. S. J. Summers Mr. J. H. Lascelles British Group M. 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 29TH MARCH 1939 The Minutes of the previous meeting, held on 29th March, were formally confirmed, and were signed by the Chairman, subject to the following amendments suggested by the British Group: PLATES The Minute in regard to CANADA (paragraphs 2 and 3 on page 8) was amended to read as follows: "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 had therefore terminated the arrangement under which British prices were agreed with the Americans for Central Canada. "It was resolved that the Minutes of the previous meeting be confirmed, and that the American Group be requested to maintain their prices 20 cents per 100 lbs. above the British price so long as the American Group were in excess." MERCHANT BARS Paragraph 2 on page 10 was amended to read as follows: "It was agreed that CENTRAL and SOUTH AMERICA (excluding the ARGENTINE), CHINA, KOREA, JAPAN and MANCHUKUO 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/d. 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. "FOR ALL OTHER MARKETS the American group would observe the prices fixed by the Comptoirs and protect these prices so long as the American Group are in excess." SHAPES (JOISTS, CHANNELS AND BROADFLANGED BEAMS) Paragraph 4 on page 11 was amended to read in the same way as the above Minute for Merchant Bars. ARRANGEMENTS WITH THE AMERICAN GROUP ALL PRODUCTS The Committee discussed the memorandum of proposals dated the 14th instant submitted by the American Group, together with the memorandum prepared by Mr. Elliot following his discussions with Mr. Todd in regard to these proposals. (a) The Committee agreed to recommend to the Joint Co-Ordinating Committee Mr. Elliot's suggestion that the excess/deficit figures at 28th February might be held in suspense for later consideration and that a fresh start in regard to statistics be made as at 1st March for the trial period of four months to 30th June 1939 proposed by the American Group. (b) In regard to the American proposal that the S. E. A. members should advise the London Committee of the schedule of minimum prices, by markets, considered necessary to prevent business being taken by outsiders and that members be authorised to meet any lower outsider prices which they encountered details to be reported to the London Committee immediately in each case the British and Continental representatives expressed the view that such procedure might be applied to markets selectively. The American representative agreed to discuss this point further with his principals. (c) In connection with the question of debits for orders taken at fighting prices, the Committee considered Mr. Elliot's suggestion that the penalties due by the American Group as at 28th February might be used as a common Fighting Fund for such orders during the four months trial period. The American representative expressed the view that it would be illegal for his Group to partici pate in a Fighting Fund and it was therefore suggested that this position might be overcome if the matter were dealt with by say, the Cartel remitting part of the American penalties, or by the scaling down of penalties or the fixing of special penalties on orders taken at fighting prices. As it was felt that if this procedure could be applied the question of debiting such orders against quota taken did not assume the same dimensions, the matter was left open for further discussion. (d) In regard to the American proposal that separate quotas and prices should be established for "BREAKDOWNS" (which at present come under the SHEET quota) and ALLOY STEELS (which are included with MERCHANT BARS) outside the existing quotas, the Continental representative stated that he was agreeable to this, although he felt that until these separate quotas were established this business must be debited against the existing quotas, but he added that he would not press this if the other points were settled. (e) The Committee left over for further discussion the suggestion that in regard to SHEETS the American Group might be given the right to go up, without penalty, to the quota figures in which the Philippine Islands business was included. TUBE STRIP The Committee considered the special agreement between the American and Continental Groups in regard to the Canadian market. No objection was raised to this agreement on the understanding that it does not upset the main quota. OTHER HOOP AND STRIP (HOT ROLLED) In regard to the query raised by the Comptoir as to the limit of the American Group's responsibility for tonnage taken by an outsider, the Committee confirmed that the American responsibility was limited to 15% of the S. E. A. members' shipments in the event of these shipments being below the members' rights. SEMIS The American representative stated that his Group were unable to agree to the Cartel's request that they should not quote to Ung. Staatliche Eisen-und Maschinenfabriken Budapest, on account of these works being in keen competition with the E. I. A. in finished products, as his Group felt that such a course would benefit the American outsiders. The matter was referred to the Joint Co-Ordinating Committee. WIRE RODS The Committee considered the report which had been received by the Comptoir in regard to the Committee's decisions at their previous meeting. (a) American Group's right to underquote It was noted that the Comptoir had not seen fit to accept the London Committee's decision that the American Group should be protected and the matter was therefore referred to the Joint Co-Ordinating Committee. (b) Fighting prices In regard to the point raised by the Comptoir that the American Group had not submitted to the Central Office any request for fighting prices, the American representative stated that it was impossible for his Group to submit individual enquiries. The Committee confirmed the previous Minute, i. e., that the authorisations of fighting prices should be given to the American Group while they are in deficit. (c) Extra charge for quality The Committee confirmed the attitude of the American Group that they could not charge extra for quality in zones of European influence unless they were in excess, and it was agreed that the Comptoir be informed that if and when they are in deficit the Committee will consider the matter further. (d) Responsibility for American outsiders The American representative stated that he was at present investigating the figures in regard to the proportion of business taken by the American outsiders and would report the matter in due course. SHEETS The American representative stated that he had not yet received the reply of his Group to the Comptoir's recommendations in regard to prices. EXHIBIT S-100 [Private & confidential-fourth meeting] E. I. A./U. K./U. S. A. AGREEMENT-MINUTES OF THE MEETING OF THE LONDON COMMITTEE HELD AT STEEL HOUSE, TOTHILL STREET, WESTMINSTER, LONDON, S. W. 1, ON TUESDAY, 18TH APRIL 1939 Present: Mr. R. M. Peat (in the Chair) M. H. Dieudonné, Continental Group Mr. G. B. Wolff Mr. A. C. Mundle Mr. S. M. Bash Mr. R. V. Kennard Mr. H. Craig Mr. V. N. Malcolm Mr. S. J. Summers British Group M. E. Conrot, Continental Group Mr. J. R. Mackay, Peat, Marwick, Mitchell & Co. This meeting of the London Committee was held following the meeting of the Joint Co-ordinating Committee held on the same day. ARRANGEMENTS WITH THE AMERICAN GROUP-ALL PRODUCTS The following formula as agreed by the Joint Co-ordinating Committee was noted as a supplement to the Agreements dated 26th February 1937 and 14th June 1938 between the S. E. A., E. I. A. and B. I. S. F.: 1. As at1 18th April 1939 the excess/deficit position on deliveries and orders shall be ascertained. This position shall be held in suspense for future consideration by the Joint Co-ordinating Committee. 2. For the period from 18th April 1939 up to and including 31st October 1939, the American and European Groups agree, for all sales to accept the control of the London Committee for the purpose of eliminating the competition of American outsiders, and ensuring the maintenance of quotas in accordance with the Main Agreement. It is understood that quotations may only be made and orders booked at such prices and under such conditions (other than standard prices and conditions fixed by the Comptoirs) as the London Committee may from time to time authorise. For this purpose the London Committee shall have complete authority under the Joint Co-ordinating Committee, and the Comptoirs shall be bound to take the necessary steps to ensure that the decisions and recommendations of the London Committee are effectively carried out. 3. Orders resulting from quotations outstanding at1 18th April 1939 shall be regarded as coming within the new period, i. e.1 18th April to 31st October 1939. 4. In the territory of NORTH EAST ASIA, Comprising JAPAN, COREA, MANCHUKUO and NORTH CHINA, all members are given full liberty both as regards price and tonnage on all products. In this respect every effort will be made to avoid members competing against each other, rather than against the American outsiders. It is agreed that all quotations or sales to that territory shall carry a clause stipulating that they are for consumption in that territory only. Consequently quotas based on 1934 and 1936 performances shall be reestablished with deliveries to the above mentioned markets omitted for all Groups. 5. From 18th April to 31st October 1939 inclusive the American Group shall no longer be debited with any deliveries by their outsiders. In regard to paragraph 2 of the above formula it was agreed that in order to establish a temporary modus operandi and until such time as experience shall indicate a better or more practical one, the American members will refer any 1Subsequent to this meeting the members of the London Committee have agreed that for the convenience of the parties, the excess/deficit figures which are to be held in Suspense shall be those at 20th April, since the figures as at that date will be ascertained by the parties in the ordinary way for statistical purposes. The period referred to in clauses 2, 3, and 5 above will therefore be from 21st April to 31st October 1939, inclusive. special price requests to the London Committee. In exceptional cases involving price cutting by an outsider, immediate action on which is considered by the American S. E. A. as necessary to avoid a loss to such outsider, authority is granted to meet such competition without reference to the London Committee. In this case the onus of proof as to the necessity for such action rests on the S. E. A. and a full report shall be made to the London Committee. EXHIBIT S-101 [Private and confidential-fifth meeting] E. I. A./U. K./U. S. A. AGREEMENT-MINUTES OF THE MEETING OF THE LONDON COMMITTEE HELD AT STEEL HOUSE, TOTHILL STREET, WESTMINSTER, LONDON, S. W. 1, ON WEDNESDAY, 3RD MAY 1939, at 4 P. M. CONFIRMATION OF THE MINUTES OF THE MEETINGS HELD ON 17TH AND 18TH APRIL The Minutes of the Third and Fourth Meetings of the Committee held on 17th and 18th April, were formally confirmed, with certain reservations which appear in these Minutes, and were signed by the Chairman. NORTH EAST ASIA It was agreed that in order to give effect to the arrangement (recorded in paragraph 4 on page 22 of the Minutes) that NORTH EAST ASIA should be a free territory: (a) As regards quotas, there should be excluded from the reference periods shipments to JAPAN, KOREA, AND MANCHUKUO. (b) As from 20th April 1939 there should be excluded all purchases made for shipment to JAPAN, KOREA, MANCHUKUO, FORMOSA AND FOR JAPANESE ACCOUNT IN NORTH CHINA, i. e., that part of China north of the Yangtse River. Under this definition of NORTH CHINA, SHANTUNG (on which the Hoop and Strip Comptoir had asked for a decision) is included in that territory. INSTANCES OF AMERICAN OUTSIDER COMPETITION There was formally reported an enquiry for 2,400 tons of shipbuilding material for Eriksberg taken by the American Group at a price of $1.90 c. i. f., as approved by the members of the Committee, to meet outside American competition through the firm of Hokar. SHIP-PLATES-PRICES IN EUROPEAN MARKETS The Committee agreed that the official price as fixed by the Comptoirs, for ship-plates to HOLLAND, NORWAY AND SWEDEN should not be lower than £9.5. 0 c. i. f. per ton and in the case of DENMARK should not be lower than £9.17. 6 c. i. f. per ton. In regard to FINLAND and GREECE it was agreed to refer back to the Central Bureau for confirmation of the official price. It was agreed that Mr. Craig be asked to furnish the American representative with full information in regard to the Comptoirs' official prices and to advise him immediately of all changes in these prices. DIFFERENTIAL FOR QUALITY In regard to the query raised by certain Comptoirs as to whether the American Group were required to maintain a differential of 7/6d. gold (12/6d. sterling) over the price for Thomas quality, reference was made to the Committee's Minute (c) on pages 19-20, which confirmed that the American Group are required to add the differential only when in excess. AUTHORISATIONS OF FIGHTING PRICES The question was raised as to whether the formula recorded in the Minutes of the 18th April correctly set out the intention of the parties, as it was felt by the E. I. A. representative that the Presidents of the Comptoirs should still have the right to fix fighting prices in all markets in special cases. It was stated that it was always the intention that the fixation of standard prices and conditions of sale remained with the Comptoirs, the London Commitee being required to deal with the meeting of outside competition, and it was agreed that, as part of the temporary modus operandi, in exceptional cases involving price cutting by an outsider where immediate action was necessary, authority be granted to the Presidents of the Comptoirs to meet such competition without prior reference o the London Committee, the onus of proof as to the necessity of such action resting with the President concerned, who must make a full report to the London Committee. NEXT MEETING The remaining items on the Agenda were deferred until the next meeting, which was fixed for Thursday, 11th May, at 10 a. m. at the Comptoir Sidérurgique Offices, 3 rue Paul Cézanne, Paris. EXHIBIT S-102 [Private and confidential-Sixth meeting] E. I. A./U. K./U. S. A. AGREEMENT-MINUTES OF THE MEETING OF THE LONDON COMMITTEE HELD AT THE COMPTOIR SIDERURGIQUE OFFICES, 3 RUE PAUL CÉZANNE, PARIS, ON THURSDAY, 11TH MAY 1939, at 10 A. M. MINUTES OF THE MEETING HELD ON THE 3RD MAY 1939 A draft of the minutes of the Fifth Meeting of the Committee, held on the 3rd May, was considered and the terms of these Minutes were settled. |