462.00 R 29/284: Telegram
The Acting Secretary of State to the Ambassador in France (Wallace)
Washington, September
1, 1920—4 p.m.
1440. B–107. For Boyden.
Your B–182, August 2.
- 1.
- Paragraph 5. Your position is correct and should be consistently maintained. There is danger that proposed scheme of accounting among Allies will not credit Germany with full value for deliveries under Article 235.
- 2.
- Paragraph 7. Since Armistice stipulated no order of priorities of charges against Germany while Treaty to which we are signatories does specify such priorities, our claims are in peculiar legal situation and may be considered as held in abeyance for the present through our non-ratification of Treaty. We distinctly have not renounced any rights we may have under Treaty and moral and equitable obligation is clear that Allies should recognize without question equality of our claims against Germany in view of our services as one of co-belligerents. It was action of all belligerents, including United States, which rendered possible benefits under Treaty, and Treaty clearly contemplates that United States shall share these benefits. Expressed or implied admission that we have no rights under Treaty should be studiously avoided, for situation might arise which would make it desirable to assert rights under Treaty, particularly in those stipulations which specifically mention United States as a beneficiary. However, the delicate and dangerous issues as to what our rights may be should not be raised without consultation with Department and until absolutely necessary. Meanwhile you should proceed as in past to act on assumption that we are in same position as Allies in regard to assets of Germany. The Department does not entirely subscribe to your views that we might be embarrassed in accepting priority payment of our army costs. Our position was so well understood that other governments can hardly at this late date begin to imply that such costs should not have priority or be paid in full out of funds contributed by Germany. As long as our troops are retained at Allies tacit request, this Government must maintain right to be reimbursed in full for their expenses. Idea should be discarded that balance due on ex-German ships and balances in hands of Alien [Page 431] Property Custodian will be available for army costs. All of this property is subject to control by Congress and no action can be taken until Congress provides legislation.
- 3.
- Values and properties delivered under Article 235 should be ample to pay costs of army, and position of Department is that such values must be applied to army costs. Will you send estimate of values already delivered by Germany under Article 235 and give your views as to what Germany is likely to pay towards twenty milliards by May 1, 1921.
Davis