Papers relating to the foreign relations of the United States, 1928, Volume I

863.51 Relief Credits/42: Telegram

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

Washington, March 5, 1928—6 p.m.

16. Department’s 15, February 21, 6 p.m.

(1) Department had understood that Governments holding relief bonds were making no conditions other than those set forth in Relief Bonds Committee’s letter of December 12 to the Austrian Minister at London.²² Department, however, is now confidentially informed that European Governments holding relief bonds are conditioning subordination of lien in favor of new loan upon Austria agreeing to definite settlement of relief credits. Basis on which settlement is said to be desired is not known but may be that of Relief Bonds Committee counter-proposal to the Austrian Government (see your despatch 1664, December 28;²³ also Austrian note to the Secretary of State, January 28,²⁴ transmitted with Department’s instruction 644, February 9²⁵).

(2) Please at once inquire of the Austrian Government whether the foregoing report is correct and also inquire concerning status of relief debt negotiations. You should state that obviously the Government of the United States expects the Austrian Government to treat it on an equal footing with all other Governments in these matters and also that you wish to be kept closely informed of all pertinent developments.

Telegraph reply as soon as possible.

Kellogg

22. Foreign Relations, 1927, vol. i, p. 470.
23. Ibid., p. 465.
24. Ante, p. 864.
25. Not printed.