462.00 R 296/724: Telegram
The Ambassador in Great Britain (Kellogg) to the Secretary of State
484. Yesterday afternoon I set forth fully to Mr. Chamberlain and Sir Eyre Crowe both legal and equitable grounds for position of the Government of the United States on its claims for Army costs and reparations. Mr. Chamberlain stated in reply that the question was one on which by its nature he must consult his colleague the Chancellor of the Exchequer, but that he would like to make a few general remarks.
First, Mr. Chamberlain said that there was no question in dispute between the British and the American Governments over justice of American claims for Army costs, but that advancement of reparations claims had come to him as great surprise. He then read extract from your New Haven address, November, 1922,76 to effect that the American Government had a claim for Army costs but did not ask reparations payments from Germany. I replied that I believed you had in mind general reparations and not compensation for damages to the persons and property of American citizens.
Second, he referred to my assertion that the members of the Dawes committee intentionally inserted phrase “Allied and Associated Powers” in order that the Government of the United States should be protected in both categories in all claims. He stated as fact that no matter what was intention of the American members of the committee, the British members had no knowledge that the so-called reparations claims of American Government were envisaged by that clause. Had they been aware of that construction, the British experts would certainly have stated to the committee that question of the claims was ultra vires, and that it was a matter to be referred to British Government.
I said that at beginning of the London Conference I had fully informed British, Belgian, French, and Italian Governments of our position, and had placed it on record in the conference both in writing and orally; and that the conference had adopted the protocol with full knowledge of our claims.
Third, Mr. Chamberlain said that while he did not agree with our contentions put forward on a legal basis, he thought they would receive favorable consideration on an equitable basis and that matter was one for adjustment; that he was prepared to appeal to Chancellor [Page 80] of the Exchequer on that basis; he would like to be able to say to Mr. Churchill, however, that if claims of the American Government were to be allowed, we would pool in Reparation Commission with Allied Governments the fruits of the common victory; that if the American Government was to receive reparations it should give credit for alien property seized, especially ships, as the Allies had done. I asked Mr. Chamberlain what the Allies had done. Neither he nor Sir Eyre Crowe were able to tell me definitely. But Mr. Chamberlain promised to furnish me with memorandum in reply to memorandum I left with him going into matter in detail; he said he thought that Germany had indemnified German nationals for property taken by Great Britain, and that Great Britain had indemnified British nationals for property taken by Germany. Sums had been offset and balance settled between the two Governments. Crowe said that shipping had been pooled among the Allies and that all tonnage above certain percentage of losses was to be paid for to Reparation Commission by each Government. He was indefinite about details, and of course I declined to make any commitment and said I should report to you what he had said. I pointed out that Germany may have indemnified and paid her nationals for property taken by Great Britain, but that she had not done this with us. He said that there would be no objection to doing this, unless it would require shipment of gold out of Germany, and I suggested that it would. I also pointed out that United States had not put forward class of claims which Allied Governments had presented but Crowe asserted that they did not expect to receive anything on those general claims, beyond compensation for damages to persons and property.
I should like to be informed in detail of your attitude and position in regard to ships and alien property.
I am to see Chamberlain again this afternoon and shall cable you further tonight. Copy of telegram sent Logan.
- Telegram in two sections.↩
- Foreign Relations, 1922, vol. ii, p. 199.↩