Office of the Historian

611.626/163: Telegram

The Ambassador in France (Wallace) to the Secretary of State

Paris, March 29, 1920—11 p.m.
[Received March 30—10:45 p.m.]

851. R–471. For War Trade Board and Davis. Department’s 594 March 24, 10 a.m.

1.
Perret will arrive too late. Immediate action necessary in America enable placing orders and arranging payment for 1,200 tons.
2.
Department is mistaken in assuming that United States has permanent right 1,200 tons from 5,200 tons agreement. It was definitely decided by dyestuff sub-commission that all amounts not ordered before March 31 would go back into pool, this was agreed to by Jacoby.
3.
Fifty two hundred ton agreement protocol, November 3, gives right to all Allies to take a certain weight of dyestuffs, but only if these dyestuffs are specifically chosen. The only way United States can actually secure possession 1,200 tons still due, or have it reserved, is to place definite orders for definite dyestuffs and pay for same.
4.
France and Italy because of their need for dyestuffs executing [executed?] last fall their allocation under 5,200 ton agreement and since early January have been pressing for distribution balance impounded stocks.
5.
Allies would object indefinite postponement United States picking 1,200 tons because this impounds indefinitely, tonnage due them from division balance stocks dyestuffs, A, B or C. You insist we have reserved 1,200 tons of alphabet, definite letters to be picked later, which demand would leave whole indemnity for their amounts A, B, or C, and prevent them securing dyestuffs from division balance stocks which they need as explained paragraph 4.
6.
A demand that balance of United States allotment be held intact until United States is ready to take same, would, in my judgment, meet with refusal and balance in pool would be immediately allocated to others, therefore we are making request, through Service Restitution in kind, for extension date placing orders under 5,200 ton agreement from March 31 to April 15. This request is to be made in such manner that the position you take in your cable will not be more difficult to defend than at present. If, when [Page 495] Perret arrives, he desires to make demand you mention, he can take responsibility of doing so.
7.
In our judgment, you should arrange immediately for underwriting these orders. Patterson has offered, in interests American consumers, underwrite dyestuffs to extent $100,000 representing current rate exchange, approving your 400 tons, price to be fixed and all profit to go to public objects selected by Secretary of State. This original offer has gone forward by Embassy pouch. Department should immediately telephone Textile Alliance and all necessary parties arrange underwriting balance as suggested Chapin’s cable to Textile Alliance March 30. At current rate exchange, total value 1,200 tons approximately $300,000, estimated sale value United States $5,000,000 although estimate difficult because considerable quantities dyestuffs would be denied entry United States by provisions Longworth bill, but dyes free to enter United States worth several million dollars can be selected and would meet bona fide needs consumers.
8.
Harold and Chapin have prepared this cable. While relying on them, I believe from what they report, the facts stated are correct and course recommended is wise. Will cable whether postponement to April 15 asked for is granted. Rathbone.
Wallace