Office of the Historian

462.00 R 294/291a: Telegram

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

[Extract—Paraphrase]
Washington, December 13, 1923—3 p.m.

461. L–23. The Department has given careful consideration to the question of possible American participation in the reparation payments made by Bulgaria and views the situation as follows:

(1)
An examination of the notes of the conference on army costs indicates that the intent of the parties to the agreement was that, subject to its terms, the United States should share in the cash payments made by Germany or in those made for her account by such neutrals as Denmark or Luxemburg or by Allies receiving excess deliveries in kind, and that no reference was made directly to the question of participation by the United States in Bulgarian reparations as such; Wadsworth confirms this view.
(2)
The wording of paragraph 3 of article 2 of the army costs agreement appears to the Department to be conclusive that the United States is entitled to share in payments made by Germany or for her account or by or for the account of another country from whom similar payment may be exacted, should the Bulgarian payments in fact be credited to Germany; but it is not certain that the Government of the United States could contend that as a matter of legal right such payments must necessarily be credited to Germany’s reparation account.
(3)
The Department has noted the statement in your letter of October 532 that the liability of Germany’s allies is included in Germany’s liability of 132 billion gold marks. The Department is not aware of treaty provisions or of agreements which expressly cover this point and it would be glad to have you express your views, particularly with Bulgaria in mind. You will note that the Trianon Treaty and the Treaty of St. Germain are, in their reparation provisions, quite distinct from the provisions of the Treaty of Neuilly; for example, according to article 179 of the Treaty of St. Germain, reference is made to the effect of reparation payments by Germany whereas under article 121 of the Treaty of Neuilly provision is made for direct payment by Bulgaria of a definite sum for the benefit of the interested Powers.
(4)
Please telegraph comment on the foregoing.

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Hughes
  1. Not printed.↩