860h.51/192: Telegram

The Secretary of State to the Minister in the Kingdom of the Serbs, Croats and Slovenes ( Dodge )

23. Your 27, June 5, 8 p.m. and 28, June 6 received.

Department desires it clearly understood by Yugo-Slav Government that $100,000,000 loan is not now under discussion, but rather a $25,000,000 loan to be expended as stated in your 28, and understands that “additional statement”, quoted in your 28, is in the form of a written communication addressed to you by the Finance Minister, and that this additional statement is to be substituted for statement in your 27, June 5, 8 p.m., in so far as divergencies may exist. Department realizes difficulty of furnishing exact figures regarding usages of loan but desires in writing as definite information as possible in round numbers, as follows:
What amount, in addition to $10,000,000 par value for construction of Adriatic railway and port, would be devoted to (a) “rehabilitation of existing railways and their equipment” and (b) “railway and bridge construction”?
What amount would be devoted to construction of government buildings?
Where would raw materials be purchased; what kinds, for what purposes and what value?
Department desires to know specifically what amount would be devoted to repaying National Bank and for dinar redemption. Figures in enclosure to your despatch 1288, March 16,12 do not bear out statement of Finance Minister that currency circulation is limited by law of February, 1920, and that circulation has not lately increased.
What amount would be devoted to exchange stabilization?
Are any interests other than American connected with companies mentioned last paragraph your 27? If so, give names and state nature and proportion of their participation. See Legation’s 10, of April 28, 5 p.m.,12 relative participation French interests.
In view of repeated assurances, express Department’s surprise and regret that Yugoslav Government should have signed loan contract in advance of statement that Department offers no objection. See your 20, May 23, 4 p.m., paragraph 4.
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