Papers Relating to the Foreign Relations of the United States, 1920, Volume II
462.00 R 29/337
The Secretary of State to the British Ambassador (Geddes)
My Dear Mr. Ambassador: In reply to your note of September 13, 1920, and the memorandum enclosed therewith, in regard to the Geneva Conference, I hasten to outline the position of this Government on the questions you were good enough to raise.
Very sincerely yours,
The Department of State to the British Embassy
Memorandum
The Government of the United States has been under the impression that the proposed Conference at Geneva was for the purpose of fixing a specified capital sum which the Allied and Associated Powers would accept in liquidation of Germany’s total financial obligation for reparations; to discuss further the question of financial [Page 438] advances to be made to Germany by the Allies in connection with the coal delivered from Germany; and also to consider other questions relating to reparations.
The Government of the United States is in entire harmony with fixing Germany’s entire liability at a definite reasonable sum, which can no doubt be facilitated by direct contact and discussion with the Germans. While this Government is primarily convinced that the prestige and authority of the Reparations Commission should be scrupulously respected and maintained, it realizes that there may be certain political factors involved in reaching a constructive settlement of the reparations problem, which cannot be dealt with by the Reparations Commission.
It is fully recognized that under the terms of the Treaty the Reparation Commission is not authorized to fix a capital sum for reparation below the amount of the German liability as defined in the Treaty, though it would, no doubt, be wise to utilize the expert knowledge of the Commission in determining such a sum.
Apparently a misunderstanding in respect to the views of the Government of the United States has been created by the alleged formal protest of the unofficial American representative on the Reparations Commission, relative to the Allied Agreement concluded at Spa.
The Government of the United States holds the view that in so far as possible German cooperation in the execution of the Treaty should be obtained, and that this can no doubt be better accomplished through direct contact with the German Government.
When the impression became current that the Allied Premiers were to send to Geneva a commission of which the members of the Reparation Commission were not to be members, and that this commission at Geneva was expected to consider questions of the most fundamental importance in the reparation policy of the Allied and Associated Powers, this Government felt that the prestige of the Reparation Commission was in serious jeopardy.
The fear just outlined was explained to the American representatives in Paris and the importance of maintaining the dignity of the Reparation Commission was pointed out to them. The Department of State is not aware that any objection to the Geneva Conference has been made by these representatives. On the contrary they were informed that this Government was not only willing but hoped the Allied Premiers could arrive at an understanding for a fixation of Germany’s total reparation obligations.
It does not appear that doubt as to the expediency of the methods of organizing the Geneva Conference can properly be construed [Page 439] as opposition to cooperation between the German and Allied Governments in the execution of the Treaty. The minutes of the Reparation Commission show that from time to time German representatives are called into consultation with that body. The Council of Ambassadors has also recently made provision for personal relations with the German peace delegation in regard to questions arising under the Treaty. To this procedure the Government of the United States has not interposed the slightest objection.
If the purpose of the Geneva Conference is to discuss financial questions relating to advances to Germany under the Spa Coal Agreement, this Government, since it is not a party to that agreement, cannot express an opinion.
The unofficial American representative informally handed to his colleagues certain reservations which he proposed to make on the part of this Government in order that he might have the benefit of their comments before these representations should be entered formally on the records of the Commission. He proposed to present reservations in regard to those portions of the Allied Agreement concluded at Spa which seemed clearly to violate the terms of the Treaty and to invade the prerogatives that are specifically delegated to the Commission.
That His Majesty’s Government recognized the pertinence of the proposed statements and the necessity for certain interpretative reservations in connection with the Allied Agreement as concluded at Spa, is evidenced by the fact that the British delegate embodied the substance of the American unofficial representative’s comments in a resolution which he presented to the Reparation Commission and which, this Government is informed, was unanimously accepted by the Commission. The resolution reads approximately as follows:
“The Reparation Commission takes note of the agreement between Belgium, France, Great Britain, Italy, Japan and Portugal which was concluded at Spa on July 16, 1920, with regard to the distribution of receipts from Germany under the reparation clauses of the Treaty of Versailles, with regard to the methods of valuation for preparing the accounts as between those Governments, with regard to the procedure in the settlement of such accounts, and lastly with regard to indemnity claims and steps to be taken to give effect thereto, due regard being paid to the rights and interests of other powers signatory to the Treaty of Versailles, but which are not parties to the above-mentioned agreement.”
In view of this action at the instance of the British delegate, of course the proposed reservations were not presented by the unofficial American representative.