File No. 855.48/651

The Secretary of State to the Ambassador in Great Britain ( Page)

[Telegram]

5669. Your 7493, October 22, From Treasury Department:

American Government has not loaned Belgian Government $75,000,000, but made a loan of $45,000,000 to be drawn at the rate of $7,500,000 a month during a period of six months,1 This amount it was understood would be expended for purposes of civil relief, and probably through the instrumentality of the Belgian Relief Commission, although that Commission can not be recognized by the Secretary of the Treasury directly in making loans under the authority of the acts of Congress which permit him to loan to governments engaged in war against Germany. At a later date, the Belgian Government requested advances to be made for the purchase of supplies for their Army in Belgium. These have been now made to an amount aggregating $13,400,000. It is inferred that the loan of $7,500,000 per month for civilian relief will be expected to be renewed since the six-months’ period has just ended, and doubtless there will be no difficulty in having such extension made.

As to expenditures within the United States, it is desired that to the largest possible amount all sums loaned to foreign governments shall be thus expended. In case of urgent necessity, exceptions may be made, but the reason for these exceptions should be first submitted to the Secretary of the Treasury.

Copy of this telegram will be shown to the Belgian Minister with the request that he make such representations to the Secretary of the Treasury as he desires to make.

Lansing
  1. For correspondence concerning loans to the Belgian Government see “Cooperation of the United States with the Allied Powers in the Provision and Administration of Finance and in the Purchase of Supplies,” Foreign Relations, 1917, Supplement 2, vol. I, pp. 516592.