File No. 855.48/686
The Ambassador in Great Britain ( Page) to the Secretary of State
[Received December 28, 2.30 a.m.]
8050. For Hoover. Comes from Poland:
57. Following telegram to Clemenceau displays financial situation which is absolutely desperate … I urge that you secure Administration to represent to Great Britain the feeling of people of United States in respect to relief and the necessity of England’s putting the financial arrangements in order.
Monsieur Clemenceau, President du Conseil des Ministres, Paris: On November 23 the French Minister of Finance after a conference with representatives of the Commission for Relief in Belgium and Northern France and the Belgian Minister of Finance, in accordance with the suggestion of the United States Government, agreed to finance the European requirements of the French relief amounting to £700,000 monthly and, conditionally upon similar action by British Government, agreed to provide a further £750,000, being one-half of the funds necessary for the European portion of the cost of Belgian relief. A telegram was thereupon dispatched to the Ambassador of France in London describing the attitude of the French Government and asking him to request the British Government to undertake their portion of the European cost of the Belgian relief. At the same time, on account of the impossibility of obtaining any guarantees of credits for meeting the expenditure in Holland of the relief work, the French Government authorized the director of the relief to negotiate a loan in Holland amounting as subsequently determined to 60,000,000 guilders and agreed to deposit French Treasury bonds to secure same, and invited Great Britain to join with the French Government and the Belgian Government in a similar authorization and undertaking. Although the desperate situation of the Relief has been presented to Foreign Office and Treasury in numerous documents and statements, and although action has been urged upon them by Crosby, representative of United States Treasury, no action whatever has been forthcoming, nor is there at the moment any indication of prompt action which is required on the part of British Government to save the relief from actual interruption because of lack of funds both in Holland and the United Kingdom. It has been shown to the British Government, and these facts are now being presented to you, that expenditures in Holland amount to from six to seven million florins monthly. These expenditures represent the payment of certain freights and insurances which cannot be paid elsewhere, the purchase of from five to ten thousand tons of most valuable native Dutch products, the cost of unloading supplies in Rotterdam and shipping same into Belgium and France. Funds available in Holland for these purposes estimated will last only until 1st January. Failing to obtain further foreign credits, relief will absolutely cease and no shipments of food can be made into the occupied territories after that date. In the [Page 470] United Kingdom since December 15 the Relief has been financed solely by virtue of what would be overdraft generously accorded by Bank Belge with the stipulation that account their own financial requirements same must be repaid in full not later than December 31. Overdraft now amounts to £500,000 and by end of month estimated will reach approximately 800,000. Owing to this critical situation and to failure of British Government to authorize loan negotiations, director cannot take steps which were recommended by French Government towards effecting a Holland loan. Growing out of failure of British Government to take action to preserve the Relief we have made definite demands on the British: (1) that they deposit to credit of Commission for Belief at once, to cover overdraft with Bank Beige and provide funds for month January, £2,500,000; (2) arrange a credit of 6,000,000 guilders to Belief Commission, Holland; (3) we again insistently urged action regarding permanent loan of guilders in Holland; (4) we urged official concurrence of British Government to request of French Government by cable of the 25th November. At meeting with representatives of Belief Commission you assured us of complete accord and support of French Government in our efforts to place financing shipping arrangements and food supply on a permanent basis. If these matters of finance are not arranged within the next few days, the actual existence of your people will be jeopardized. Under these circumstances we earnestly beg the most active intervention of the French Government with the British Government to insist on the necessary action being taken and we also request that the French Government, pending action of the British Government, place at our disposal at once as a temporary advance the sum of £1,000,000, Poland, Director Belief Commission.