462.00 R 29/97: Telegram
The Ambassador in France (Wallace) to the Acting Secretary of State
Paris, March 2,
1920—8 p.m.
[Received March 3—9:32 p.m.]
[Received March 3—9:32 p.m.]
613. R–382. For Davis. Supplementing my R–371.63
- 1st.
- Following letter agreed upon at meeting of Reparation
Commission March 1:
- “[I.] The Reparation Commission reminds Germany
that under the terms of article 235 of the treaty,
she shall pay during 1919, 1920 and the first four
months of 1921 in such installments and in such a
manner as shall be fixed (whether in gold,
commodities, securities, ships or otherwise) the
equivalent of 20 milliards of gold marks to be
reckoned in the total of her debt. Out of this sum
the expenses of the armies of occupation shall first
be met and such supplies of food and raw material as
may be judged to be essential to enable Germany to
meet her obligations for reparation, may also be
paid for out of the above sum. In order to allow of
the execution of the provisions of this article
including the last named payment, the Commission is
of opinion that it is essential that use be made of
all securities except those covered by articles of
the treaty other than article 235, which are in the
possession of the German Government, of German
states and of German nationals, and which represent
interests in undertakings situated in neutral
countries. These securities form, indeed, those
resources [Page 367]
which will best enable Germany to procure such food
and raw materials as are essential to permit her to
meet her obligations. The Reparation Commission
therefore notifies Germany that it will not consent
to any payment, out of the 20 milliards of gold
marks, of [for] the supplies
of food and raw materials as approved [provided] in article 235,
except on condition that the German Government
immediately takes all measures necessary to acquire
all securities of the kind described above, and in
possession of its nationals, and applies them to the
purchase of such indispensable supplies of food and
raw materials. The Reparation Commission would not
consent to consider the question of whether it is
possible to apply other German resources to the
purchase of such supplies of food and raw materials
as are indispensable to enable Germany to meet her
obligations for reparation, unless it has been
proved to the Reparation Commission that such
measures have been effectively taken, and that this
method of providing for the purchase of
indispensable supplies of food and raw materials,
together with the measures provided for by the
armistice conventions, have proved to be
insufficient. The Reparation Commission therefore
calls upon the German Government immediately to take
all measures necessary to acquire all securities of
the kind described above and in possession of its
nationals, and especially to enact such legislation
as may be necessary to prevent any alienation of
these securities by their owners. The Commission
makes no objection to the German Government using
these securities for the purchase of essential
supplies of food and raw materials. The Commission
also calls upon the German Government:
- (1)
- To inform it as soon as possible (a) of the enactments of the above laws; (b) of the measures taken to render such laws effective and to ensure their strict application.
- (2)
- To transmit from time to time the lists of securities thus acquired by the German Government. The detailed lists containing a complete description of all securities which the German Government proposes to avail [itself] of, for the purpose of obtaining essential food and raw materials, must be filed with the Reparation Commission, and the securities therein set forth, must be intact until the German Government is notified by Reparation Commission that no claim is made in respect of such securities under article 238 [or] other clauses of the treaty of peace.
- (3)
- To inform it from time to time of the proceeds resulting from the sale of such securities.
- (4)
- To keep it informed of the particulars of the purchase of such supplies of food and raw materials acquired through the use of such resources.
- II. The Reparation Commission makes no objection to the disposition by the German Government of the securities described above and which are now owned by it or by the German states, and which are therefore covered by article 248 for the purchase of food and raw materials essential to enable Germany to meet her obligations for reparation. Further, there is no objection to the German Government continuing to apply to such purchases the foreign securities [Page 368] previously requisitioned by it under the terms of the armistice conventions.
- III. In general the conditions imposed by the Committee on Organization of the Reparation Commission upon the sale of the securities previously possessed or requisitioned by the German Government for the same object, remain in force. The Commission confirms the request already made to the German Government to transmit to it at regular intervals the information called for above under sub-paragraphs numbers 2, 3, and 4 of paragraph I in regard to securities treated in paragraph II. It is self evident that this letter leaves intact all obligations undertaken by Germany under other articles of the treaty including article[s] 260 and 297.”
- “[I.] The Reparation Commission reminds Germany
that under the terms of article 235 of the treaty,
she shall pay during 1919, 1920 and the first four
months of 1921 in such installments and in such a
manner as shall be fixed (whether in gold,
commodities, securities, ships or otherwise) the
equivalent of 20 milliards of gold marks to be
reckoned in the total of her debt. Out of this sum
the expenses of the armies of occupation shall first
be met and such supplies of food and raw material as
may be judged to be essential to enable Germany to
meet her obligations for reparation, may also be
paid for out of the above sum. In order to allow of
the execution of the provisions of this article
including the last named payment, the Commission is
of opinion that it is essential that use be made of
all securities except those covered by articles of
the treaty other than article 235, which are in the
possession of the German Government, of German
states and of German nationals, and which represent
interests in undertakings situated in neutral
countries. These securities form, indeed, those
resources [Page 367]
which will best enable Germany to procure such food
and raw materials as are essential to permit her to
meet her obligations. The Reparation Commission
therefore notifies Germany that it will not consent
to any payment, out of the 20 milliards of gold
marks, of [for] the supplies
of food and raw materials as approved [provided] in article 235,
except on condition that the German Government
immediately takes all measures necessary to acquire
all securities of the kind described above, and in
possession of its nationals, and applies them to the
purchase of such indispensable supplies of food and
raw materials. The Reparation Commission would not
consent to consider the question of whether it is
possible to apply other German resources to the
purchase of such supplies of food and raw materials
as are indispensable to enable Germany to meet her
obligations for reparation, unless it has been
proved to the Reparation Commission that such
measures have been effectively taken, and that this
method of providing for the purchase of
indispensable supplies of food and raw materials,
together with the measures provided for by the
armistice conventions, have proved to be
insufficient. The Reparation Commission therefore
calls upon the German Government immediately to take
all measures necessary to acquire all securities of
the kind described above and in possession of its
nationals, and especially to enact such legislation
as may be necessary to prevent any alienation of
these securities by their owners. The Commission
makes no objection to the German Government using
these securities for the purchase of essential
supplies of food and raw materials. The Commission
also calls upon the German Government:
- 2d.
- You will perceive that this letter is a substantial acceptance of American position regarding German owned neutral securities. Question of German owned securities representing interest in German enterprises and property and commodities in Germany remaining to be discussed and policy of Reparation Commission in regard thereto determined at some future time. Rathbone.
Wallace
- Not printed.↩