File No. 851.51/51

The Secretary of the Treasury ( McAdoo ) to the Secretary of State

My Dear Mr. Secretary: I have the honor to acknowledge the receipt of your letter of May 4, inclosing translation of a note from the Ambassador of the French Republic concerning the desires of his Government to enter into a loan contract with the Government of the United States.1 I have been in touch with the French Ambassador and yesterday completed negotiations with him for a loan of $100,000,000, $50,000,000 of which was made available on May 8, 1917. Negotiations for the remaining $50,000,000 will be completed on a later date during the present month, at which time I will advise you.

In arranging this first loan to the French Government, I received from the French Ambassador a certificate of indebtedness of his Government in the sum of $100,000,000, signed by him under proper authority, and I in turn handed to the Ambassador a Treasury warrant for $50,000,000, it being stipulated in the certificate of indebtedness that a first payment should be made immediately of the latter sum, and of the remaining $50,000,000 at a date to be mutually agreed upon between the Ambassador and myself.

Sincerely yours,

W. G. McAdoo
  1. Letter of May 4 not printed; for translation of the note from the French Ambassador, a copy of which was enclosed, see ante, p. 525.