Paris Peace Conf. 871.51/3: Telegram
The Acting Secretary of State to the Commission to Negotiate Peace
[Received January 6—8:10 a.m.]
103. For Secretary of State. Your 48 regarding loan to Roumania received through Navy.58
Only legal difficulties are: [1] Whether Roumania is as matter of fact at war at the present time so as to be regarded as belligerent within meaning of the act of Congress; (2) whether representative of Roumania here has authority from duly constituted government to sign obligations for advances; (3) whether the loan is to be used for the purpose contemplated by the act of Congress. We have no information on first point other than following: Telegram from Minister Vopicka, dated November 9th, delayed 6 weeks in transmission states King was prepared to demand surrender of Germans and thus re-enter the war.59 Cable from Ambassador Sharp, 6244, dated December 12, 5 p.m.,60 quotes Mr. Pichon as saying that he understands no declaration of war could be made by the present government as now constituted, but he looks upon Roumania as to all intent and purposes an ally although not formerly [formally?] so recognized. Department has heretofore held Roumania not at war since Bucharest treaties were signed. Department assumes you have information showing that Roumania is in fact now in a state of war with Germany. If this assumption is correct first legal difficulty would be satisfied. Roumania no doubt would make a declaration of war upon suggestion of American representative who can now be communicated with by telegraph.
As to second difficulty there is no representative here who has authority of any kind to sign obligations. When former advance was made Roumanian Minister here signed obligations, but he has now left. The Treasury says it has no information as to whether the advances formerly made by it have been used or for what purpose they have been. Department is not advised as to whether Roumanian [Page 701] Government as at present constituted can give valid constitutional authorization to representative here to sign obligations any more than Servian or Belgian Government could in the past.
As to third difficulty, act of Congress under which loans are made provides that they be made “For the purpose of more effectually providing for the national security and defense and prosecuting the war.” The Government has recently refused to make loans to Montenegro for purchase of agricultural machinery, cattle, relief of war desolation, army expense, care of disabled soldiers, and to San Marino for railways, hospitals and schools.
Treasury Department unable to make loan proposed by you unless this Department will say it is satisfied as to all points; viz., all three points mentioned (which as indicated above it is not in position to do) or unless the President will direct the Treasury to make the loan proposed.
It is suggested that if you have the facts showing that Roumania is at war and that loan is to be used for purposes within act of Congress, Roumanian Government should instruct its representative here in its name and on its behalf to negotiate a loan agreeing to sign obligations thereunder and to perform any other necessary acts in the premises. If the President will then, on account of the uncertainty as to legal authority of the present Roumanian Government to make foreign loans or delegate authority to its representatives here, approve the loan, as a matter of policy, the Treasury can act. This is the procedure followed in the doubtful cases of Servia and Belgium.