File No. 882.51/763
The Secretary of State to the French Ambassador
Washington , December 14, 1917 .
Excellency: On November 5 last, Mr. de Laboulaye of your Embassy called at the Department to say that you desired it made of record that the Government of the French Republic supported the position of the British Government as stated in the British Ambassador’s note of October 19, in regard to the administration of the sinking fund on the Liberian Five Per Cent Gold Loan of 1912.
The position of the British Government as stated in the British Ambassador’s note above mentioned was in effect that, in confining the purchase of bonds for the sinking fund to the private issue, the fiscal agents (The National City Bank of New York) had acted contrary to a provision of the loan agreement which, it was stated, required the bonds to be purchased in the open market as far as was practicable.
[Page 901]It being found that the Department of State was without any information as to the procedure of The National City Bank of New York in this matter, a copy of the British Ambassador’s note was communicated to the Bank, with a request that the Department be fully advised in the matter.
I have the honor to enclose herewith, for your information, a copy of the Bank’s reply,7 from which it would seem to appear that the Bank endeavored to act in fairness to all the bondholders.
Accept [etc.]
- Printed as inclosure to Department’s note No. 1927 to the British Ambassador of December 14, 1917.↩