462.00 R 294/353: Telegram
The Acting Secretary of State to the Ambassador in Great Britain (Kellogg)
Washington, July 15,
1924—7 p.m.
213. For Logan. L–104. Your L–197.59
- 1.
- Department’s L–10060 suggested deposits to the credit of Federal Reserve Bank, New York, which would hold as third person until agreement effective or until withdrawn prior thereto in accord with Commission or governments, but from cables received it is apparent deposits have been made to the credit of Treasury of the United States. Treasury can hold this as special deposit account but should have the authority to invest and convert into dollars which Department’s L–100 suggested for Federal Reserve Bank.
- 2.
- Department’s L–100 suggested credit on army cost account at dollar value of various currencies when credited abroad to Federal Reserve Bank. Your quotation from reply of Belgian Assistant Delegate mentions value at time of conversion into dollars which would necessarily be later. The latter more favorable to the United States if fully understood by all parties.
- 3.
- Department does not understand from your third paragraph L–197 to what extent you informed Belgians of statements contained paragraph 2 Department’s L–100, particularly since Belgian reply states “that the United States is agreed that Belgium will be credited with the amount that she will transfer the value to be taken at the time of its receipt by Belgium.” As stated paragraph 2 Department’s L–100 question of amounts to be debited to Belgium does not directly concern the United States. Subsequent statement that “Belgium could presumably be credited with sums set aside at their value when received by Belgium” was not intended and should [Page 150] not be taken to modify previous proposition that this does not directly concern the United States. Please make clear to Belgians our position. We are not concerned with amounts to be credited to Belgium, but with actual amount to be paid into blocked account for which Treasury will be accountable. Our complete proposition which you should make clear to Belgians is this: The Treasury will accept special blocked account to be held until Army cost agreement effective or until withdrawn prior thereto for the United States in accord with Commission or governments. If funds go to the United States, Treasury will credit to army cost account funds so deposited to its credit in New York and in national banks of various countries at the present dollar value of the currencies at the date of such deposits to its credit; Treasury to have the right to convert foreign currencies into dollars at its option and to invest funds abroad or here; interest earned to follow final disposition of funds. If funds do not go to United States, Treasury would be relieved by payment of funds in currencies originally credited to it or by payment of dollars for all or part of the funds which may have been converted into dollars plus interest earned, if any.
- 4.
- Please telegraph full text of all letters exchanged or that may be exchanged with Belgium on this subject except those already telegraphed.
Grew