800.51 W 89France/121a: Telegram

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

[Paraphrase]

203. Inquiries from newspaper correspondents made necessary a statement Saturday by the Department regarding debt-funding negotiations, and for information of the correspondents, but not for quotation, the Secretary said:

“The correspondents are aware that debt-funding arrangements have been completed with Great Britain, Finland, Hungary, Lithuania, and Poland by the World War Foreign Debt Commission.37 Among the countries with which debt-funding arrangements have not been completed are Belgium, Czechoslovakia,38 France, Italy, and Rumania.39 In pursuance of authority given by Congress, it is function of the Debt Commission to keep subject before these Governments with whom arrangements have to be made, and the duties of the Secretary of State are to carry out, in communication with foreign Governments or with our Ambassadors and Ministers, the orders of the Debt Commission. The correspondents will readily understand that the Secretary of State cannot publish the various communications to our Ambassadors and Ministers or conversations between them and the representatives of foreign governments. The Secretary could only say that these matters had been brought to the attention of these governments, and that he is very hopeful that they are taking steps to open subject of settlement of the debt with the World War Foreign Debt Commission. We earnestly desire and hope that negotiations will be entered upon promptly and brought to satisfactory conclusion at earliest moment possible.

“France is only one of countries which have been urged to reach settlement with the Debt Commission, and it would be a matter of great satisfaction, of course, if French Government should take steps promptly to send a commission to negotiate and conclude with our World War Foreign Debt Commission, a suitable arrangement for payment or funding of debt of France to the United States, and that he had received impression from press reports that the French Government has in mind such action in near future.”

The foregoing statement is the sole basis for newspaper stories about a circular note to debtor governments. Department has not sent any such note and none is thought of.

At press conference of May 18 one correspondent inquired if there was any authority for reports that nine countries had been approached. Secretary said he did not make that statement and that he could not say nine countries had been approached. Another [Page 156] correspondent said that a newspaper article had indicated that there had been a circular note. Secretary replied that there had not been any, and that whatever had been done through conversations with Ministers and Ambassadors had been done separately, not all at same time.

Repeat the foregoing to American Embassies Belgium and Italy, and Legations Czechoslovakia, Greece, Latvia, Rumania, and Yugoslavia.

Kellogg
  1. See Combined Annual Reports of the World War Foreign Debt Commission, pp. 106, 120, 132, 144, and 156.
  2. See pp. 107 ff. and 122 ff.
  3. See pp. 162 ff. and 165 ff.