863.51/859

The Minister in Austria (Washburn) to the Secretary of State

No. 1585

Sir: I have the honor to acknowledge receipt of the Department’s telegram No. 20 of October 28th, 11 a.m., in response to my telegram No. 54 of September 20th, 10 a.m. and despatch No. 1532 of the [Page 455] 20th ultimo, advising me in substance that in the opinion of the Attorney General the Secretary of the Treasury has no power to act further under the Joint Resolution approved April 6th, 1922 and that a new enabling act of Congress will therefore be necessary to enable him to take the action desired by the Austrian Government. I am today advising Chancellor Seipel in the sense of the foregoing. Especially in view of the formal request contained in my despatch No. 1573 of the 17th instant, it is superfluous to emphasize the desire of the Austrian Government for a new congressional enabling act and I am taking it for granted that the Department will at the proper time take appropriate action.

The decision set forth in the Department’s telegram under reference makes it certain that the new loan will be on a 30-year basis, though Minister of Finance Kienböck told me only yesterday that if the Secretary of the Treasury were free to act under the Resolution of 1922 and cared to exercise his discretion, a shorter term would be most seriously considered. The Austrian Government had not definitely committed itself, though the discussions in London and Paris had proceeded on the 30-year theory. Dr. Kienböck intimated that he expects shortly favorable action from the Reparation Commission and that the negotiations with the Relief Credit Committee, acting for the Relief Credit states, of which the Englishman, Leith Ross is chairman, vice Niemeyer, are proceeding satisfactorily. I will of course keep the Department informed of developments.

In this connection I am enclosing herewith translations of two articles from the “Wiener Boersen-Kurier” of the 17th and 24th instant dealing with the loan flotation.21

I have [etc.]

Albert H. Washburn
  1. Not printed.