Papers Relating to the Foreign Relations of the United States, 1925, Volume I

462.00 R 296/941

The Unofficial Representative on the Reparation Commission (Logan) to the Secretary of State

Paris, 17 February, 1925.
[Received February 25.]

My Dear Mr. Secretary: With reference to my L–353 of February 17th²⁴ and Department’s L–213 of February 7th and preceding interchange of cables on the subject of Article Four of the Agreement of January 14th, 1925, under which Belgium receives certain moneys from Germany, by reason of the debt of Belgium to the United States of America, and the methods by which these sums are to be paid over to the United States by Belgium when and as received.

I enclose herewith the original of Mr. Gutt’s letter No. AP: 3/15 A/80920 addressed to me under date of February 17th, together with copies of my letters to Mr. Gutt of February 16th, 1925 and February 18th, 1925.^24a (Latter letter dated February 18th though actually delivered February 17th)

It will be noted that the enclosures are drafted in the terms desired by the Treasury Department.

I venture the suggestion that this letter and its enclosures be referred to the Treasury Department for appropriate collection of the sums due from Belgium. In this connection, I invite attention that “pending the final settlement of the accounts” or in other words, pending any correction of the percentages as between France, Great Britain and Belgium “by reason of her debt to us” and as from February 1, 1925 to August 31st, 1925, Belgium is entitled to receive on this account from the Dawes Annuities, 610,000 gold marks per month.

I will promptly notify the Department when and if it is decided that Belgium is to receive any increased percentage “by reason of her debt to us”. This office will also inform the Department of any changes in the monthly rate as starting from September 1, 1925, or the date of the commencement of the second Dawes Annuity year. In the meantime, the 610,000 gold mark figure stands for each of the seven months contemplated by the inclusive dates hereinbefore given.

In accordance with my understanding, the question of collection is now transferred to the Treasury Department for the 610,000 gold marks per month during the period in question, and that the only further intervention of this office will be a possible notification of the change in the amount after final settlement is reached and the periodical notification of the sums accruing in the second and subsequent Dawes Annuity years.

Faithfully yours,

James A. Logan, Jr.

[Enclosure]

The Belgian Assistant Representative on the Reparation Commission (Gutt) to the American Unofficial Representative on the Reparation Commission (Logan)

Paris, 17 February, 1925.

No. AP: 3/15 A/80920

My Dear Mr. Logan: I desire to confirm our understanding that the sums to be received by Belgium under Article Four of the Agreement of January 14, 1925, by reason of the debt of Belgium to the United States of America, shall be paid over to the United States by Belgium when and as received. My Government is prepared to take appropriate steps to that end and, having in mind your desire that payments be made in currencies freely convertible into dollars, I take pleasure to assure you that my Government, unless and until the Transfer Committee authorizes the transfer into foreign currencies of the marks received, will use the funds to be received under this head in marks for the payment on account of the deliveries in kind to be received by Belgium from Germany and will pay to the United States Government the equivalent amount in Belgian Francs or in currencies freely convertible into dollars.

I shall be glad if you will let me know whether the foregoing is agreeable to your Government and advise me as to any details with respect to the procedure to be followed in making these sums promptly available to the Government of the United States.

Faithfully yours,

Gutt

24. Not printed.
25. Letters to Mr. Gutt not printed.