462.00 R 296/846: Telegram
The Ambassador in France (Herrick) to
the Secretary of State
Paris,
January 13,
1925—11 a.m.[Received January 13—10
a.m.
18]
35. L–312 [from Herrick, Kellogg and Logan]. Following is text that part
of Conference report entitled “Share of the United States of America in
Dawes annuities”:
[Page 141]
- “A. Out of the amounts received from Germany on account of
the Dawes annuities there shall be paid to the United States
of America the following sums in reimbursement of the costs
of the United States Army of Occupation and for the purpose
of satisfying the awards of the Mixed Claims Commission
established in pursuance of the agreement between the United
States and Germany of August 10, 1922,19
the latter in an amount not exceeding $350,000,000:
- (1)
- 55,000,000 gold marks per annum, beginning
September 1st 1926, and continuing until the
principal sums outstanding on account of the costs
of the United States Army of Occupation as already
reported to the Reparation Commission shall be
extinguished. These annual payments constitute a
first charge on cash made available for transfer by
the Transfer Committee out of the Dawes annuities
after the provision of the sums necessary for the
service of the 800,000,000 gold marks German
external loan, 1924, and for the cost of the
Reparation Commission, the organizations established
pursuant to the Dawes Plan, the Interallied
Rhineland High Commission, the Military Control
Commissions and the payment to the Danube Commission
provided for in article 9 below, and for any other
prior charges which may hereafter with the assent of
the United States be admitted. If in any year the
total sum of 55,000,000 gold marks be not
transferred to the United States, the arrears shall
be carried forward to the next succeeding annual
installment payable to the United States which shall
be pro tanto increased.
Arrears shall be chargeable [sic] and shall bear simple interest at four
and a half from the end of the year in which said
arrears accumulated until they are satisfied.
- (2)
- Two and one-quarter percent (two and one-fourth
percent) of all receipts from Germany on account of
the Dawes annuities available for distribution as
reparations, provided that the annuity resulting
from this percentage shall not in any year exceed
the sum of 45,000,000 gold marks.
- B. Subject to the provisions of paragraph one [A] above the United States of America
agree:
- (1)
- To waive any claim under the Army Cost Agreement
of May 25, 1923, on the cash receipts obtained from
Germany since 1st January, 1923, beyond the sum of
[$]14,725,154.40 now deposited by Belgium to the
Treasury of the United States in a blocked account
in the Federal Reserve Bank of New York, which sum
shall forthwith be released to the United States
Treasury.
- (2)
- That the agreement of May 25, 1923, does not apply
to payments on account of reparations by any
ex-enemy power other than Germany,
- (3)
- That the Agreement of May 25, 1923, is deemed to
be superseded by the present agreement.
- C. The provisions of this agreement relating to the
admission against the Dawes annuities of charges other than
reparations, and the allotments provided for such charges,
shall not be modified by the Allied Governments, so as to
reduce the sums to be distributed as reparations save in
agreement with the United States of America.
- D. The United States of America is recognized as having an
interest, proportionate to its two and one-fourth percent
interest in the part of the annuities available for
reparation, in any distribution of
[Page 142]
railway bonds, industrial debentures,
or other bonds issued under the Dawes Plan, or in the
proceeds of any sale of undistributed bonds or debentures,
and as having the right also to share in any distribution or
in the proceeds of any sale of such bonds or debentures for
any arrears that may be due to it in respect of the
repayment of its Army costs as provided in the present
agreement. The United States of America is also recognized
as having an interest in any other disposition that may be
made of the bonds if not sold or distributed.”
The foregoing will undoubtedly be approved by Conference. We consider
this text meets Department’s desires as communicated to us in cabled
instructions and that therefore further approval of Department
unnecessary. Herrick, Kellogg, Logan.
