863.48/173: Telegram
The Secretary of State to the Ambassador in France (Wallace)
Washington, November
26, 1920—8 p.m.
1661. For Boyden. B–160.
Your B–318, November 14,39 and your B–323, November 18.
- 1.
- The Grain Corporation has liquidated its business and at present has neither authority nor funds for advancing relief supplies. The Treasury is not authorized to advance funds to former belligerent states, and for some time past has taken a position against further Treasury advances of any description to European states. Without Congressional action, therefore, this Government would not be in a position to take action toward furnishing aid to Austria.
- 2.
- Although we will consider, when Congress convenes, the advisability of putting the matter before it, it is probable that credits will only be available from private sources. There does not appear to be much incentive for business investment, but the Department would probably be willing to give such encouragement as it properly can to the extension of private relief to Austria.
- 3.
- Neither Austria nor the European powers should count on assistance from this Government in solving Austria’s difficulties.
- 4.
- The Department believes that insofar as possible the reduction of armaments and of economic barriers, both on the part of Austria and of her neighbors, will go farthest toward solving Austria’s problems. Any informal influence which you may bring to bear on your colleagues to secure these ends would receive the support of the Department.
Colby
- Not printed.↩