464.00 R 29/34: Telegram

The Chargé in France ( Whitehouse ) to the Secretary of State

351. L–4. Under article 196, Treaty of Trianon, commission1 has required surrender by Hungary of Bulgarian treasury bills nominal value 240,000,000 francs. Hungary has delivered bills but calls attention commission to fact that under provisions of the treaty bills are deliverable to Allied and Associated Powers of which United States is one, although not officially represented on commission; also that in treaty with Hungary August 29, 1921, United States reserves rights enjoyed by other Allied and Associated Powers under the Treaty of Trianon. Hungary, therefore, requests commission to assure it that delivery of bills to commission shall not prejudice interests Hungary in case United States eventually protests delivery in compliance with commission’s demand. Finance Service proposes commission grant assurance requested by Hungary and advise Hungarian and the United States Governments that it assumes any responsibility that may arise vis-à-vis United States from the fact that bills have been transferred to commission. Since status United States rights under the treaties with Central Powers seems involved, have arranged suspension action giving time to receive possible instructions from the Department. Is Finance Service proposal satisfactory? Logan.

  1. The Reparation Commission.