863.51 Relief Credits/44: Telegram
The Secretary of State to the Ambassador in Great Britain (Houghton)
56. Referring to previous communications regarding the proposed Austrian loan:
The Department is informed confidentially that the European Governments which hold relief bonds are making the subordination [Page 883] of lien in favor of the new loan conditional upon agreement by Austria to settle definitely the relief credits. The Department’s understanding was that these Governments were in principle agreeable to subordination of lien if all Governments similarly situated took like action and if the Reparation Commission allowed suitable release. Mr. Leith Ross, of the British Treasury, on December 12, 1927, so informed the Austrian Minister in London (see the Reparation Commission’s Annex 3271–J).26
The Department would welcome any discreetly available information as to the report above as well as with regard to the status of negotiations on the relief debt.
Please cable your reply and repeat it to the Legation in Austria.