800.51 W 89 Hungary/40: Telegram
The Ambassador in France (Herrick) to the Secretary of State
[Received 11:30 p.m.]
280. L–170. Hungarian Legation Paris has supplied me with certified copies of letters from the Ministries of Foreign Affairs of France, Switzerland and Holland addressed to the Hungarian Government consenting to the subordination of the prior liens enjoyed by their relief bonds to the Hungarian reconstruction loan. Have also been supplied with copies uncertified of similar letters from Foreign Offices of Great Britain, Norway, Sweden and Denmark. Advised that certified copies of letter will be forwarded promptly. This comprises all countries holding relief bonds except United States.
- 2.
- Action of all countries except France is expressly conditioned upon similar action of other countries. Norway, Sweden and Denmark further condition their agreement upon the understanding that Hungary will after loan is floated resume payment of interest on relief bonds commencing with January 1, 1923. All countries except France and Great Britain state that the suspension of the privilege is for 20 years, that being the duration of the loan. Great Britain and France merely waive priority in favor of the loan.
- 3.
- In view of desire immediate action hope Secretary of the Treasury can accept foregoing as evidence of action of other powers. As safeguard however the formal waiver by the Secretary of the Treasury might follow formula adopted by most other powers, namely, providing all the other governments holding relief bonds agree to a similar waiver of their prior charge in favor of Hungarian reconstruction loan. Such action by the United States would close the whole matter if as appears to be the fact this condition is satisfied.
Mailed to Budapest. Logan.