462.00 R 294/196: Telegram

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


172. For Wadsworth. W–30.

You are authorized to state that this Government will accept the Allied proposals on priority if you are satisfied they cannot be bettered.

It is not deemed equitable that the United States should yield further in view of the foregoing concession which clearly indicates willingness of this Government to take into consideration the difficulties faced by the other Governments concerned and to be most generous in making concessions with a view to reaching an agreement. You should, for reasons already stated, inform your colleagues that paragraph 2, article 6, is not acceptable to this Government, but if it appears that insistence on elimination of this paragraph would definitely disrupt negotiations you may state that this Government would accept the following substitute: The paragraph be followed up to and including the words “up to the amount of the annual installments due” and from there reading as follows:

“due to the United States during that year, the Government of the United States will discuss the effect of such measures or payments with the other parties for the purpose of reaching an agreement which will preserve in the light of such measures or payments the equities of the parties to this agreement.”

. . . . . . . . . . . . . .

The French Ambassador under instructions from his Government has just seen me and stated that it was understood you would recommend the acceptance of the priority as now proposed but would merely submit without recommendation paragraph 2, article 6. He informed me that the Belgians and the British were very insistent on this latter provision. I explained the extent of our concessions at length and stated that we could not agree to restrict our liberty of action, indicating to him the proposal set forth in the 2d paragraph of his telegram as a final concession.