860h.51/159: Telegram

The Chargé in the Kingdom of the Serbs, Croats and Slovenes ( Boal ) to the Secretary of State

[Paraphrase]

12. Your telegram no. 11, May 1, 4 p.m., and ours of April 21 with respect to claim of Standard Oil Co.1a I was told today by the Acting Minister of Finance that although he was unable to give official Government assurance, lacking full discussion in the Council of Ministers, he was certain that all interest in arrears on American loans as well as the amounts due to American citizens would be paid as soon as the foreign loan was procured, and that this indebtedness would take precedence over all other uses to which the $30,000,000 advance loan could be put; the Yugoslav Government would, moreover, consolidate the principal of these loans for payment as soon as this action became possible. The Government proposes to buy dinars on exchange with as much as may be required of the $30,000,000 and then turn them over to the National Bank to be annulled or to be lent against collateral when currency is needed. The Acting Minister also stated that he believes Blair & Co., J. P. Morgan, and Kuhn, Loeb & Co. negotiations for a loan are completed but that signature has been delayed awaiting the opinion of the Minister of Finance and pronouncement from Genoa Conference.

Boal
  1. Not printed.