462.00 R 296/724: Telegram
The Secretary of State to the Ambassador in Great Britain (Kellogg)
433. Your 484, November 20, noon. As you said, I had reference in my New Haven speech to general reparations.
The Department’s attitude on ships and alien property was set forth at length in its instructions to Logan L–91, paragraph 8, June 28, and L–99, July 7.89 Instructions are being sent to Logan to furnish you copies of these instructions. Briefly they are that each of the Allied Governments was, under the Treaty of Versailles, given option of retaining or releasing enemy property. Some of the Allies if not all have released a part at least while retaining the balance. The Government of the United States must be fully as free to exercise its option to release or to retain as any of the others. If the German property seized in the United States or the proceeds are finally retained, due credit will be given of course against our claims against Germany.
It appears probable from every indication including statements made in reports of Congressional committees on alien property that Congress would not be disposed to approve final retention of such property. This Government ought to have complete liberty to retain or to release this property in view of the elimination of categories for pensions, allowances, etc., and of our willingness to extend payments from the proceeds of the Dawes Plan over a long series of years with consequent relatively small annual participation.
- Latter not printed.↩