462.00 R 294/525: Telegram

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

229. H–113 [from Hill]. Department’s H–52, May 25.

1.
At meeting held late yesterday afternoon consideration of the question of army costs postponed as British and French proposals had only been circulated just before meeting without sufficient time for their information.
2.
From these proposals it appears that French at present are standing on old figures.
3.
British propose “an allocation of 25,000,000 gold marks from the Dawes annuities in full discharge of their Army costs if the French and Belgian Governments are prepared to waive all claims for future additional army costs as to advance allocations of 85,000,000 gold marks and 10,000,000 gold marks respectively, in full discharge of their annual costs of occupation as long as their effectives remain at about the prescribed strengths. The new allocation should date back to 1st April, 1926, and should be subject to revision in 1930 or in the event of any substantial reduction of the armies of occupation before 1930 but not otherwise”.

[Paraphrase]

4.
Department will observe that the British have in mind an agreement extending over more than the third annuity. As the proposals were not discussed I took no position on this point. Should there be substantial reduction in priority for army costs, would the Department raise serious objection to agreement extending over more than third annuity provided that there is also stipulation that in event of substantial reduction in armies that question would be reconsidered?
5.
All delegations save Italian, who asked for further time, indicated their agreement to fix Rhineland Commission costs at 3,300,000 gold marks.
6.
Military control costs have not yet been discussed but letter to conference of Ambassadors from General Walsh, President of Military Control Commission, estimates expenses for the next year at 2,892,000 gold marks. It is not improbable that the Committee will settle upon a figure of approximately that amount.
7.
As it is intended to fix the above costs first, the other questions specifically mentioned in British note to Department and also referred to in similar note Embassy here has received from the French, have not yet been discussed.
[Page 161]

British assistant delegate and I are both leaving Paris next week; the date of the next meeting has been postponed until after our return. Hill.

Herrick