860h.51/181: Telegram
The Secretary of State to the Minister in the Kingdom of the Serbs, Croats and Slovenes ( Dodge )
[Paraphrase]
Washington
,
May 24,
1922—4 p.m.
18. Your telegram no. 16 of May 16, 7 p.m., your no. 19 of May 23, 10 p.m.,8 and no. 20 of May 23, 4 p.m.
The Department understands that you have received formal official assurances as follows:
- (a)
- Total loan, $100,000,000;
- (b)
- $25,000,000 in the one instance and $30,000,000 in the other to be issued immediately;
- (c)
- Of the first installment, $10,000,000 to be used for railroad
construction, the balance to go
- (1)
- To pay debt to the Standard Oil Co.;
- (2)
- All interest due on the indebtedness to the Government of the United States;
- (3)
- The redemption of dinar currency; and
- (4)
- The construction of Government buildings;
- (d)
- That the Yugoslav Government has expressly undertaken not to use the proceeds of the loan for the repayment of debts to foreign governments other than the Government of the United States; and
- (e)
- That instructions have been cabled the Yugoslav Minister at Washington to present proposals to the World War Foreign Debt Commission immediately for the refunding and settlement of Yugoslav indebtedness to the United States.
If the above understanding is correct, the Department will notify the interested American bankers that it has no objection to the proposed loan. Please cable confirmation immediately.
Hughes
- No. 19 not printed.↩