870.811/16: Telegram

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

866. Your urgent 715, March 16, 11 a.m. and 1027 April 20, 8 p.m.5

  • First: Please communicate to the proper parties that the President has nominated as arbitrator Mr. Walker D. Hines. He is just terminating his duties as Director-General of Railroads in the United States by reason of the return of the American railways to their private owners. We believe Mr. Hines exceptionally qualified for the satisfactory and expeditious conclusion of this work. He is both a lawyer and a transportation expert.
  • Second: It is suggested that you obtain such appropriate ratification or approval of this appointment from the powers concerned as you may consider necessary. In this connection it should be considered whether in the circumstances it is necessary or advisable to obtain the concurrence of the Enemy Powers.
  • Third: In bringing this matter to the attention of the powers interested please discuss informally the following points: Mr. Hines upon arrival at Paris will wish to discuss with interested parties the amount of time necessary for this work. He will be prepared to devote about ten months to it provided it develops in this discussion that important results can be accomplished within that time. We understand that the powers interested have expressed willingness to pay a salary at the rate of not less than $25,000 a year to the arbitrator appointed and in addition a lump sum for expenses and allowances of $5,000. We are inclined to believe that the arbitrator should be paid at same rate as Reparation Commissioner. Please discreetly suggest above views as to salary and report to us agreement reached. Please notify us also whether official traveling expenses in Europe will be paid in addition to allowance named. We believe lump sum stated for expenses would not be sufficient to cover official traveling expenses. Further notify us whether powers contemplate according arbitrator diplomatic status with freedom from local taxation.

Mr. Hines would contemplate sailing for Havre on June 9th on the Steamer France. Mr. Hines would endeavor to leave sooner provided his earlier personal presence would accomplish substantially greater expedition of the work. He anticipates that prior to his arrival he can arrange by cable for important preliminary work to be started. Suggest you consult Hudson6 also on this point.

Please repeat to Hudson, care Amembassy London.

Colby
  1. Latter not printed.
  2. Manley O. Hudson.