462.11 W 892/672

Memorandum by the Assistant Secretary of State (Olds)

The German Ambassador came in again this afternoon at my request and I informed him that after consideration we had concluded not to enter into a conditional agreement on the subject of claims. In other words, we were not disposed to make an agreement contingent upon the action of Congress authorizing the return of the German property in the hands of the Alien Property Custodian. The Ambassador expressed disappointment and stated that our position created a deadlock. He said he understood that the Mellon plan20 could not be presented and acted upon so long as the claims against Germany remained unadjusted. I endeavored to explain again to the Ambassador that in our view all of the claims under consideration were proper to be presented under the treaty, and that the so-called late claims could not be regarded as barred by the exchange of notes made when the Mixed Claims Commission was set up under the treaty. The only way eventually to bar claims is by amendment to the treaty and that has not been done. The German Government, according to the Ambassador, frankly declines to accept this view.

R[obert] E. O[lds]
  1. i. e., the Mills Bill.