File No. 871.51/89
The Secretary of State to the Ambassador in Great Britain ( Page)
5995. Following urgent for Crosby from Secretary of the Treasury:
Treasury 21, your 13. Approve arrangement for a loan of $20,000,000 to Roumania of which one-third advanced by United States. Have just received following cable No. 181 dated December 5 from American Minister at Jassy:
Myself, the American military attaché, and all the Allied Ministers recommend that the United States, either by itself or in conjunction with the Allies, make a loan of $20,000,000 to Roumania commencing at once and continuing for three months and possibly longer, provided that the Roumanians will withdraw the Roumanian Army to Russia and will undertake not to make a peace and if possible will continue to fight. Roumania cannot buy provisions for the Army en route through Russia because it has no money. It is consequently necessary to open a credit with some bank at Odessa at once. The situation otherwise is lost. I request instructions if the Department wishes me to control this loan so as to carry out this plan. The Allied Ministers and myself have protested against an armistice [Page 735] with Germany being concluded by Roumania. The American military attaché says that he has just been advised by the British military attaché that authority has been given him to expend up to £1,000,000 provided Roumanian Premier will instruct that this plan be carried out by the Army.
On December 5 before receiving your cable United States had advanced $5,000,000 to Great Britain to be made immediately available to Roumania probably through Bank of England. In view of foregoing cable from Jassy conclude that Great Britain had advanced £1,000,000 for her own account immediately followed by $5,000,000 advanced by United States. In view of apparent urgency of situation believe these advances should stand and that the advance of $5,000,000 thus already made by United States should be taken as on account of advance of one-third of $20,000,000 arranged by you, balance of our one-third or $1,660,000 to be drawn in manner suggested by you. Please cable at once whether you are satisfied that arrangement reported by you sufficient to take care of immediate exigencies of situation in view of urgent cable above quoted from American Minister at Jassy. You are authorized by State Department to instruct American Minister at Jassy direct and he has been so advised.