462.00 R 296/381: Telegram
The Secretary of State to the Ambassador in Great Britain (Kellogg)
179. Your no. 224, June 24, 9 p.m. Following for your information and guidance:
The Department notes that with view to giving effect to the experts’ report, thought is being given to signing by the Allied Governments of some sort of formal instrument, probably in the form of a protocol, which would avoid appearance of a treaty explicitly modifying Treaty of Versailles. While obviously highly desirable that appropriate arrangements be made to give speedy effect to the experts’ recommendations, you will appreciate that this Government is not in a position to join in an undertaking to execute recommendations of Dawes report. In particular this Government is not a party to economic and military sanctions. It has long since withdrawn its forces of occupation from Germany. It appears, moreover, that the instrument proposed to be drawn up is of such a nature that for this Government to adhere to it, the advice and consent of the Senate would be required, involving, at best, delay which it is important to avoid. Apart from other considerations, [Page 33] it would be inadvisable, therefore, from a practical standpoint, to consider making an agreement to which this Government would be a signatory and which would require approval by the Senate before it could be put into effect. To call such an agreement a protocol would not help the matter.
The United States has a definite interest and concern, nevertheless, in the situation. Although the United States is not a party to the Treaty of Versailles, in its separate treaty with Germany this Government is accorded certain rights and benefits stipulated for it in the Treaty of Versailles. Under these circumstances Germany, which has entered into certain obligations toward the United States, might consider that this Government should properly be heard in connection with arrangements which look toward Germany’s assumption of new obligations of such importance as those proposed. In particular the Government of the United States is concerned with negotiating at the appropriate time an arrangement by which it may be enabled, in accord with the other Governments which are concerned, to participate in payments pursuant to experts’ plan so that its Army costs, the claims of the Government, and private claims now being adjudicated by the Mixed Claims Commission may suitably be paid. The Department has fully instructed Mr. Logan on this point, and will instruct him to inform you of Department’s position. Apart from this direct interest of the United States in arrangements referred to, the Government of the United States is of course greatly concerned that prompt and efficacious measures looking toward economic recuperation in Europe be taken.
It is important that representatives of the United States should do nothing by which it would be made to appear that this Government is participating in imposition on Germany of unduly onerous conditions. In the view of this Government the objective of the forthcoming conference is the promotion of economic recuperation and recovery of just claims against Germany in such a manner as will render unnecessary imposition of sanctions as have been imposed in the past. It is important that no misconception of the position of this Government should obtain currency.
It should also be kept in mind that the success with which the experts’ plan has met comes from the fact that the Governments as governments were not dealing with the questions involved and that the experts, although not disregardful of political conditions and the attitude of the several Governments, undertook to give appropriate weight to economic conditions. It is important, therefore, that this approach to the question be continued, and that plans should not be jeoparded by introduction of political controversies.
[Page 34]With these considerations in mind, I may summarize following points:
- (1)
- The Government of the United States does not wish to become a party to any protocol or other instrument which would involve participation by this Government in execution of experts’ recommendations, nor does this Government wish to sign any general instrument necessitating submission to the Senate for advice and consent to ratification. What has just been said is not to be taken, however, to preclude possibility that some separate instrument, appropriate to regulation of payment of American claims or growing out of treaty between United States and Germany, might not be deemed advisable. Latter possibility will be dealt with as situation develops.
- (2)
- As this Government is not a party to the economic and military sanctions, no question of its participation in an instrument relating to sanctions need be raised. In regard to arrangement of sanctions appropriate to execution of plan, all that United States can do is use its moral influence with view to prompt carrying out of experts’ recommendations without introduction of elements of political controversy which might tend to prevent satisfactory settlement. Your attendance at forthcoming conference will be in large measure to manifest earnest desire of this Government for a prompt settlement, and you will without doubt find that there will be occasions on which you may helpfully indicate sentiment of American Government and people in regard to these matters. You will, of course, in so acting bear in mind that purpose of conference is to give effect to experts’ plan, and to create situation in which plan can operate freely as looked to in experts’ report. It will be desirable, therefore, that your influence be so exerted that measures of compulsion which may not flow from plan and from its spirit may be avoided.
- (3)
- Should the Governments arrange for certain sanctions as is suggested in points 4 and 5 of British memorandum, the Government of the United States will not, of course, associate itself with such arrangements. If, however, question of the selection of an “impartial and independent authority” should be presented, and if your opinion is asked, you may indicate that the Permanent Court of International Justice might be available for purpose desired.
- (4)
- In regard to suggestion in the British memorandum touching flotation of proposed loan, and desire of Allied Governments to give weight to the possible views and feelings of the public of the United States, you will bear fact in mind that the Government of the United States is not in position to guarantee this financing or to assume any responsibility in regard to it. As was indicated in the President’s address on April 22, this Government hopes that basis may be found on which American capital will participate. You will realize that you could not appropriately take the responsibility of indicating the exact views and feelings of American investment public. You may, nevertheless, at times find yourself in a position helpfully to indicate views of American bankers and investors without involving this Government in any responsibility. If, for example, the French representatives should propose retention of measures which would amount to economic interference in the occupied territory, you might then say that while you could not speak for the Government of the [Page 35] United States in the matter, you felt justified in stating informally on basis of your knowledge of views of American investment public, that under those conditions the loan could not be floated in the United States.
You are instructed to present the following note to the Foreign Office:29
“The American Ambassador presents his compliments to the Secretary of State for Foreign Affairs and has the honor to acknowledge the receipt of His Excellency’s note of June 24 which he did not fail promptly to communicate to his Government, regarding the forthcoming conference in London to consider the experts’ plan.
Mr. Kellogg is now instructed to state that the Government of the United States has observed with deep interest and gratification that steps are being taken with a view to putting into effect the experts’ plan as speedily as possible, and cordially appreciates the courteous invitation conveyed to the Government of the United States by His Majesty’s Government. As His Majesty’s Government will readily understand, the Government of the United States is not a party to the economic and military sanctions to which Germany is now subject and is not in a position to enter into an undertaking to execute the recommendations of the experts. Nevertheless, the Government of the United States, believing as it does that the first and essential step to economic recovery in Europe, in which the American Government and people are deeply interested, is the speedy adoption of the experts’ plan, does not desire to stand aloof from the proposed conference. Therefore, with the authorization of the President the American Ambassador has been instructed to attend the conference, in view of the foregoing considerations and for the purpose of dealing with such matters as affect the interests of the United States and otherwise for purposes of information.”
On appropriate occasion you may in your discretion orally inform Mr. MacDonald of this Government’s views on other points mentioned in the British memorandum to which first part of present telegram is addressed, except that I do not desire you to refer in any way whatever to the subject of American claims until you receive specific instructions in the matter.
Repeat to Embassies in Belgium, Italy and France, and request the latter to give copy to Logan.
- Quoted note not paraphrased.↩