462.00 R 29/136: Telegram
The Ambassador in France (Wallace) to the Secretary of State
[Received 9:56 p.m.]
828. R–464. For Davis. Reference my 457.22
[1.] Representatives United States and Great Britain have informally agreed upon program substantially set forth in paragraph 2 this cable, subject to any objections on the part of United States or of British Treasury. Representatives these Governments, Austrian Section, will ask that section to request Reparation Commission to delegate powers and specifically instruct section as therein set forth. Anticipate no difficulty putting this program through with possible slight modifications.
2. A. Austrian Section of the Reparation [Commission] shall be delegated full powers and authority vested in Reparation Commission by Treaty Saint Germain with provision [for] review of decisions by commission.
B. Austrian Section is specifically instructed to proceed as follows:
- I.
- Pursuant to powers conferred upon Reparation Commission by article 197 of the Treaty Saint Germain, Austrian Government will be authorized to issue bearer bonds constituting first charge upon all assets and revenues of Austria and having priority over costs of reparation under the treaty or under armistice arrangements. (a) Portion of said bonds will be issued by Austrian Government to Governments of Allied and Associated Powers and neutral governments who have heretofore made advances or credits for purpose of relief to Austrian Government since November 3, 1918, equivalent at their face value to amount of such advances or credits provided that lending governments above referred to shall surrender any obligations or evidences of indebtedness together with any Austrian assets or other form of security thereof now held by them, (b) Another portion of bonds above referred to will be issued by the Austrian Government at their face value to the Government[s] of Allied and Associated Powers and neutral governments up to amount of [Page 274] relief advances or credits to the Austrian Government now contemplated if and when made, (c) Further portion of bonds above referred to may be issued at par by the Austrian Government with the consent of Reparation Commission from time to time in consideration of further or additional relief advances or credits if and when made, (d) Bonds above referred to shall be of the same series payable in currency of lending country with interest at 6 per cent January 1, 1921, but may all or none with the consent Austrian Section be renewed by obligor up to but not beyond January 1, 1925. (e) Austrian assets released as specified in sub-paragraph (a) supra will be turned over to Austrian Section and on demand all government monopolies, objects of art and all property of late royal and imperial house being or recently declared to be government property as well as any other liquid assets of Austrian Government to be held by Austrian Section and so far as available administ[ered] by it for purposes contemplated entirely in interests of reparation, at the same time assuring to Austria her main requirements of food, coal and raw materials as required by article 181 Treaty Saint Germain.
- II.
- Austrian Section shall require Austrian Government forthwith (a) to forbid sale, transfer or disposal of any publicly owned property without approval of Austrian Section and may require such Austrian Government to declare void any such sale made since armistice; (b) to pass such laws as may be proposed by Austrian Section affecting sale or other disposition without Austria of all privately owned property; (c) to refrain from entering into any agreement or arrangement permitting delivery or removal out of Austria of any records, documents, objects or material of character specified in section II of part VIII of Treaty Saint Germain without specific consent and prior approval [of] Austrian Section.
- III.
- Austrian Section to such extent, if any, as shall appear necessary or desirable shall supervise and control forthwith collection and expenditure of all taxes, customs and revenues of Austrian Government and shall make recommendations to Austrian Government having in view exercise of strictest economy in administration of its economic affairs.
- IV.
- Austrian Section shall commence study forthwith of economic and financial conditions of Austria and shall prepare comprehensive plans for her rehabilitation to end that reparation contemplated by Treaty Saint Germain may be forthcoming.
3. As it is necessary to go forward with this matter promptly any objections you may have should be communicated immediately as it is impossible to give by cable or letter correct phrasing of situation. Trust you may find it possible to make no objection to procedure indicated which I have reason to believe in its main outline will prove acceptable to Commission, as well as [to] Allied and neutral Governments’ participation in relief advances. Rathbone.