362.115 St 21/354: Telegram
The Chargé in France (Whitehouse) to the Secretary of State
[Paraphrase]
Paris, October 8,
1924—11 a.m.
[Received 5:15 p.m.]
[Received 5:15 p.m.]
432. L–230, from Logan.
- 1.
- Assistant general counsel of Standard Oil Company, Mr. Guy Wellman, called and made following request upon which I recommend Department’s favorable action. He expects to be in London next week.
- 2.
- Following out the suggestion in my L–221 of September 17 that there be exercised some sort of pressure in London where the key of the solution of the tanker compromise lies, Wellman suggests that Ambassador Kellogg be advised of his coming and be requested to make a démarche at the appropriate Ministry or at the Foreign Office in the endeavor to get the British Government to instruct Bradbury to vote in the Reparation Commission for the proposed compromise. If he would do so it is almost certain that the compromise would be accepted. I have several times expressed grave doubts lest the Standard Oil receive nothing, if the compromise is not accepted. At least two features should appeal to the British Government from the practical and diplomatic point of view: First, this dispute has been dragging for almost five years and it is not desirable to continue it further, particularly since it is said that the value of the vessels is continually deteriorating. Second, whatever may be the strict law of the case the fact is that American capital was invested in the German corporation and that every ton of the tankers was built directly with funds which Standard Oil Company contributed and for which it [received] bonds of the German corporation. Therefore from the point of view of the business world the [Page 167] tankers represented [American] money whether or not they flew the German flag. It seems highly inequitable that to pay German reparations an ally should seize what really represents American capital.
- 3.
- If the Department concurs with suggestion of asking Kellogg to intervene I recommend that he await arrival of Wellman for an explanation of the equities of the case. Logan.
Whitehouse