463.00 R 29/169: Telegram

The Secretary of State to the Ambassador in France (Herrick)

99. Your 126, February 17, 4 P.M. regarding liberation bonds, You may inform the Conference of Ambassadors that the Government of the United States is of the opinion that it is entitled to be consulted as to the disposition of the bonds to be issued by the Governments of Poland, Rumania, the Serb, Croat and Slovene State and Czechoslovakia under the provisions of the agreement of September 10, 1919, as modified by the declaration of December 8, 1919, and that in the exercise of such right it declares that it offers no objection to the delivery of these bonds when issued to the Reparation Commission. You should add that in view of the claims which the United States has against the Governments of Austria and Hungary and which are the subject of a tri-partite claims agreement signed in [Page 195] Washington, November 26, 1924,12 the Government of the United States cannot concur in an instruction to the Reparation Commission to hold these bonds as trustee for the British, French and Italian Governments alone. It suggests therefore that the Commission be instructed to hold the bonds as trustee for the American, British, French, and Italian Governments with the understanding that any final disposition or distribution of the bonds or their proceeds shall be made only in agreement with the United States.

Please give copy of this telegram to Logan as Department’s L–220.

Hughes