462.00 R 29/317: Telegram
The Secretary of State to the Ambassador in France (Wallace)
1541. For Boyden from Davis. B–134.
Transmit your B–23986 and following despatch to London Embassy for verbal information of British Foreign Office.
With reference to your B–239 and letter of September 17,87 I concur in your view that before attempting to make any further progress on settlement of reparation it is first necessary to agree upon the basic principles for settlement, namely, the substitution of a definite figure for the long accounting contemplated by Treaty and the fixing of a definite figure on economic capacity rather than on the amount of the damages. I also favor the strategy advocated by you, provided the British will concur. The British Ambassador first discussed the matter with me when the French Government attempted to use your protest regarding the Spa meeting as a pretext for preventing the Geneva meeting. The British evidently feel that if the French are not forced to carry out the Spa agreement it will take many months to regain the ground thus lost. The British Ambassador has suggested, therefore, that the Premiers should meet at Geneva as contemplated and, after dealing with the Spa agreement they might agree to refer the entire reparation question to the Reparation Commission with authority and instructions to deal with it on the principles indicated by you. In substance, the only difference in Geddes’ plan and yours is for the Premiers to go through the formality of the meeting at Geneva and thus expedite the reference of the matter to the Reparation Commission, even recommending the principles on which the Commission should work, which would ultimately give more force to the action of the Commission. I am inclined to favor the suggestion of Geddes but am in favor of whichever plan will expedite solution of this matter and suggest that you use your judgment accordingly.