462.00 R 29/174: Telegram
The Ambassador in France (Wallace) to the Secretary of State
[Received April 17—10:50 a.m.]
1005. B–26 for Davis.
On receipt Department’s 652, your Treasury R–305,67 sent Commission our assent to letter to Germany asking list securities subject to article 260. Included in this notice of assent your statement United States position about realizing highest possible price, also about China. At meeting April 9, letter to Germany was sent. Nothing else done in connection with this subject except Bradbury suggested informally that Commission was partially committed to giving favorable consideration to proposition of allowing Powers to take what they wanted at valuation without auction. I stated that United States was not committed and must insist on statement which I had presented. Matter will rest here until we get list from Germany and statements from Governments of what, if anything, they want. We can discuss question better when we come to deal with specific properties or concessions. It may appear then that auction is not the best way of realizing highest value for some particular property or concession. Important point is to recognize our fiduciary relation not only to Germany but to all concerned which imposes upon the Commission the obligation to get the highest value. I think Commission will recognize this obligation and in fact has recognized it and there is of course a strong presumption in favor of auction as best method of carrying out the obligation. Boyden.