411.57 N 83/111: Telegram

The Minister in Norway ( Schmedeman ) to the Secretary of State

70. Referring to my cable number 59, October 4, 2 p.m.10 Norwegian Minister for Foreign Affairs informs me that you have suggested arbitration of the so-called Hannevig claims and requests me to say that Norway approves so strongly of that method in general [Page 577] that it could not refuse a definite proposal; however a prompter solution is much desired and the offer by the United States of a definite sum would be greatly appreciated.

Some of the present holders of the contracts are on the verge of bankruptcy due to inability to repay loans from banks and the present remarkably high exchange value of the dollar would appear to furnish an opportunity to settle these claims now. The present contract holders have almost all paid for their contracts in kroner and the United States could pay enough kroner to repay their outlays with interest without greatly exceeding the payments in dollars made in America according to the original contracts.

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