File No. 763.72/7721
The Delegate to the Inter-Allied Council ( Crosby) to the Secretary of State
[Received 10.20 a.m.]
3. For Secretary of the Treasury:
Roumanian Minister here explains the failure of his Government to give powers to any representative for signing obligations due to factional jealousies in Jassy. Difficulty at last overcome to this extent that the Minister at Paris is now expecting to go to America soon. I shall see him next week. Meanwhile Minister here states that nothing can be done until further developments in the Russian situation. Referring to future efforts of France and England to obtain credits in neutral countries, thus diminishing the demand for money to purchase sterling exchange in New York, I believe that their efforts will not be whole-hearted as long as the great difference in rate of interest obtainable from us as compared with that which would be paid to others exists. I think it very important that I should say that you are considering the advisability of raising the rate of interest, at least on that portion of the loans made to them which would be expended outside of the country directly or indirectly. This will not commit you but I am positive it would have good effect here. I think it so important that I would like to have from you some telegram referring to this point though not necessarily taking positive stand. I expect to be in Paris next week meeting Tardieu and proceeding then more rapidly to organization of Inter-Ally Council.