811.24/547: Telegram

The Ambassador in France (Wallace) to the Secretary of State

196. Referring Embassy’s 194, 19th.36 Following is digest of note received by Embassy from the President of the Ukrainian Mission in Paris dated January 16th:

Twelve million dollars worth of American Army stocks were ceded to the Government of the Ukrainian Republic by contract signed June 1919 through Liquidation Commission. Treasury notes of Ukrainian Government were accepted in payment. Transfer effected November 11th. Exact sum owned [owed?] by Ukrainian Government determined at $7,844,600.90. By letter dated January 16th Liquidation Commission declared contract annulled and demanded surrender of stocks in return for the Ukrainian notes received. No motive or reason given. Colonel Noble of Liquidation Commission in several interviews indicated that measure was based on assumption that de facto Ukrainian Government no longer existed and consequently [Page 790] could not fulfill its obligations. President Ukrainian peace delegation earnestly protests and declares that Ukrainian Government has never ceased to exist and is at this moment endeavoring [apparent omission] in close union with Polish and Roumanian Governments to liberate its country from foreign and enemy incursions. Petlura still President and Commander-in-Chief of national Ukrainian Army. Government transferred to Rovno and therefore its scope of activity from a territorial point of view vaster than trade in [that at] time of signing of contract when Government was at Kamenetz-Podolsk. States Ukrainian Government continues to consider itself responsible for obligations assumed and insists upon exact execution of contract.

I request instructions as to what reply if any should be made to foregoing note. This is the first correspondence Embassy has had on this subject with Ukrainian Mission.

  1. Not printed.