711.672/149: Telegram
The Secretary of State to the Special Mission at Lausanne
273. The idea of an ultimatum, suggested in Mission’s 573 of July 30, is not favored by the Department. If our terms should be rejected, as seems probable, we should then have created a situation in which neither side could recede from its position without sacrifice of dignity. Moreover, should negotiations be broken off through presentation and rejection of an ultimatum, the spirit of our relations would be changed and an incitement would be furnished to Turkey to take measures injurious or at least vexatious to American interests, while we should have no present remedy. We might be put in a position of disadvantage as compared with the European powers, and in consequence might get into difficulties both foreign and domestic. The settlement of our claims will not be promoted by such a condition of affairs; on the contrary, it might be delayed, and without compensating advantages. If, however, we sign the treaty and keep up amicable relations with Turkey, we would be in a more favorable position to get our claims satisfied. Although the situation is not satisfactory, yet it is not the desire of the Department that by presenting an ultimatum you should break off negotiations.
The Department is at a loss to understand why the formula contained in its 269, July 27, has been rejected by the Turks. By that formula means are provided for working out solutions of questions relating to claims, and Turkish responsibility does not go beyond an obligation to give just and conscientious consideration to our claims. By the second paragraph of the Turkish formula, however (see Mission’s 573), it could perhaps be argued that the Turks have no obligation further than to enter into negotiations with us for the purpose of classifying the claims, and that should these negotiations not come to an entirely satisfactory conclusion we could not ask anything more under the treaty.
The Department has taken note of Ismet Pasha’s statement to you that Turkey is ready to agree now to begin a discussion of American claims with the best will and intention of devising some means of settlement, but does not wish to prejudice its position as regards liability. This intention might be more explicitly affirmed by modifications in the language of the proposed formula.
The Department desires you to propose that in the new formula the second paragraph shall provide that: After taking note of claims which may be brought in, and within a period of not more than six months after the claims are filed, the high contracting parties will [Page 1134] enter upon negotiations to determine without delay the classes of claims which may be entitled to further consideration. The high contracting parties agree thereafter to devise without delay a suitable procedure for the due examination and proper settlement of claims which have been selected as meriting further consideration.
If the Turks expect to deal sincerely with the claims question, they should have no objection whatever to the change proposed above, which is an express statement of obligation to examine and settle the claims. Special reference is made to claims which may be entitled to further consideration, in order to anticipate any attempt hereafter to reject arbitrarily some classes of claims.
The Department authorizes you to accept a clause as suggested above, or one in which at least the same ideas are embodied. We have now carried the negotiations so far toward a complete agreement that we would not be warranted in breaking them off or even adjourning them. The Department confides the matter to your discretion and authorizes you to accept as a last resort the formula suggested in Mission’s 573 of July 30.