Papers Relating to the Foreign Relations of the United States, 1920, Volume I

840.48/2681a: Telegram

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

Washington, March 31, 1920.

645. For Rathbone from Davis. Treasury R-302.

Embassy’s 783, March 22, your R-447.²²

1. Have seen Logan’s Food 290 for Barnes and Barnes’ Fruit 582 for Logan in reply.²³

2. Bill providing for relief of populations in Europe and in countries contiguous thereto suffering for want of food passed by House and Senate and now before President for signature as follows. “That, for the participation of the Government of the United States in the furnishing of foodstuffs to populations in Europe and countries contiguous thereto suffering for the want of food, the United States Grain Corporation is hereby authorized, with the approval of the Secretary of the Treasury, to sell or dispose of flour now in its possession, not to exceed 5,000,000 barrels, for cash or on credit at such prices and on such terms or conditions as may be necessary to carry out the purposes of this Act and to relieve populations in the countries of Europe or countries contiguous thereto suffering for want of food; Provided, That an audited, itemized report of the receipts and expenditures of the United States Grain Corporation for the purposes authorized by this Act shall be submitted to Congress not later than the first Monday in December, 1920.”

3. Approve, so far as Treasury is concerned, that each country designate agent in America empowered formally to receipt in name of his Government for all Grain Corporation deliveries. Understand, however, that Grain Corporation is not required to render accounts to auditors under Treasury Department and, therefore, no question of Treasury Department final accounting.

4. Suggest that agreement, executed with countries to whom relief is to be furnished providing for delivery of evidences of indebtedness, should be made on behalf of Grain Corporation and not of Treasury which has no direct connection with matter. Believe also that for same reason obligations received pursuant thereto for purchase price of flour should be delivered to Grain Corporation rather than Treasury.

5. Shall be glad to receive from you suggestion as to form of obligations to be received.

6. Have referred Barnes to State Department for advice as to authority of representatives in this country of respective Governments to execute obligations on behalf of such Governments.

Colby

22. Not printed.
23. Neither found in Department files.