Papers Relating to the Foreign Relations of the United States, 1924, Volume II

462.11 W 892/318: Telegram

The Ambassador in Great Britain (Kellogg) to the Secretary of State

[Paraphrase]

London, July 13, 1924—noon.
[Received 12:05 p.m.]

249. L–195, from Logan.

(1) Your L–81, June 14, 2 p.m., in regard to amount of awards of Mixed Claims Commission as probably about $300,000,000, and the fact that this amount could be defrayed in about 24 years. Has the Department taken into consideration fact that the awards of the Mixed Claims Commission carry interest at rate of 5 percent from date of damage done until date of payment? In other words, there is an interest charge of $15,000,000 a year, and the sum suggested by Department as annual payment would not be adequate to meet even this interest charge.

(2) My purpose in bringing up the foregoing is not to suggest that we put forward claim to interest on our claims, for of course if everyone enters this sort of claim, however equitable it may be, ultimate payment in full becomes practically hopeless; but I wish to draw Department’s attention to the fact that interest runs on the judgments for both parties. This fact may have been overlooked in making calculations stated in your L–81. [Logan.]

Kellogg