863.51 Relief Credits/4
The Austrian Minister (Prochnik) to the Secretary of State
Excellency: Further advice received from my Government on the progress of negotiations conducted in London with a view of deferring the liens held against Austria by various nations for relief credits in order to pave the way for a new Government loan, necessitates some modification of the proposal submitted to Your Excellency with my note ddo. December 6th, 1927, No. 2423/70.
In said note (par. 5) I stated that my Government came to the conclusion that a settlement of the relief credits would be preferable to a further extension of the lien.
In the meantime, however, the other creditor nations have with the consent of the relief committee deferred their liens for relief credits for a period of 30 years beginning from the date of issue of the loan.
This deferment of lien does in no way alter the resolution of the Austrian Federal Government to settle the relief credits in conformity with a plan outlined in my previous note. The pertaining negotiations are progressing favorably although final settlement may experience some delay.
In view of the aforementioned facts I have the honor to solicit Your Excellency’s kind intermediary in causing an appropriate legislation to be recommended to Congress authorizing the Government [Page 473] of the United States in terms similar to those adopted in the so-called Lodge-Resolution to likewise defer for a period of 30 years beginning from the date of issue of the loan the lien for relief credits extended to Austria.
On the same occasion I would appreciate an early notification as to whether or not the Government of the United States is willing to enter into negotiations for a settlement of Austria’s relief debts along the lines indicated in my previous note.
In connection therewith I am in a position to state that my Government, although not being able—for reasons mentioned before—to enter into an agreement stipulating for payments to be made prior to 1943, could and will reserve a right to commence payments on January 1st, 1929.
In fact my Government is contemplating to start the first payments on the relief debts on the last mentioned date.
Accept [etc.]