462.00 R 29/337

The British Ambassador (Geddes) to the Secretary of State

My Dear Mr. Secretary: In accordance with the promise which I gave you yesterday, I send you, herewith, a short memorandum [Page 436] summarizing the position which has arisen with regard to the proposed conference at Geneva on September 24th.

Believe me [etc.]

A. C. Geddes
[Enclosure]

The British Embassy to the Department of State

Memorandum

The proposal that a Conference should be held at Geneva on September 24th with a view more particularly to arriving at a settlement of the question of the financial advances to be made to Germany by the Allies under the terms of the Spa Gold [Coal?] Agreement, was made by His Majesty’s Government in accordance with the decision of the Spa Conference to refer the Reparation question to a Special Commission at Geneva which should consist of “two delegates from each Delegation”.

While this proposal has been accepted by the Italian, Belgian and German Governments, the French Government, although prepared to be represented at this Conference on the same footing as His Majesty’s Government, have declined to accept the proposed date on the ground that it is the same as that chosen for the Financial Conference at Brussels, which many of their delegates for Geneva would be obliged to attend.

In reply to representations, the French Government have amplified the grounds for their refusal as follows:

(1)
Not only have they found it necessary, on technical grounds to select the same delegates for the Brussels and Geneva Conferences but, having regard to the nature of the agenda for both Conferences and the necessity for avoiding the slightest difference of policy or interpretation between the French Representatives, they consider it out of the question for the French Government to be represented otherwise than by the same delegates at the two meetings.
(2)
They regard it as improbable that, in the present disposition of the German Government and in view of their evident desire to seek all possible opportunities of evading the obligations imposed by the Treaty of Versailles, any favourable result could be expected from discussion with their delegates at Geneva.
(3)
They allege that the proposed Conference at Geneva is not regarded favourably by the United States Government or by the Belgian Government. They claim that the United States delegate on the Reparation Commission has already lodged a formal protest against the Allied Agreement arrived at at Spa on the ground that it is incompatible with the Versailles Treaty, while the Belgian Government are said to wish to act through the Reparation Commission [Page 437] at Paris directly without the convocation of a Special Conference at a place so distant as Geneva. In addition to the above reasons the French Government deprecate the suggestion that any further action is necessary with regard to gold advances to Germany or that any undertaking on the subject has been given by the Reparation Commission to the German Government. Under existing arrangements the Germans receive advances in exchange for gold [coal?] and deposit bills in return, leaving the Reparation Commission only the details of execution to arrange.

His Majesty’s Government desire to point out that the policy which the French are now proposing appears to run entirely contrary to that which the Allies have attempted to carry out since the date of the San Remo Conference, the essential point in which has been that German cooperation in the execution of the Treaty should be obtained so far as possible through direct communication between the German Government and the Allies. With this policy His Majesty’s Government had always believed the United States Government to be in sympathy and they accordingly ask that some enquiry be made as to the reasons for the action of the American delegates on the Reparation Commission.