863.51 Relief Credits/41

The Austrian Minister ( Prochnik ) to the Secretary of State

My Dear Mr. Secretary of State: I have the honor to enclose herewith a Memorandum concerning the present status of deferment of a lien held against Austria by European countries.

Accept [etc.]

Edgar Prochnik
[Enclosure]

The Austrian Legation to the Department of State

Memorandum

The Austrian Minister upon being told by the Economic Adviser, Mr. Young, that an information had reached the Department of State to the effect that the European countries holding a lien against [Page 885] Austria for relief credits had decided to make their consent for further deferment of said lien dependent on a funding of their credits, immediately cabled to the Federal Chancery, Department of Foreign Affairs, for advice and instructions, as aforereferred to information was quite in contradiction to the answers given by the Relief Committee, the Governments concerned and the Reparations Commission to the request made by the Austrian Federal Government for an extension of the period of deferment in connection with the intended loan.

The Minister of Austria was informed by his Government that it does not know of any change in the status of the case and that the information received by the Department of State must obviously be based on some misapprehension, as all the creditor countries (the United States excepted) already deferred their lien with the consent of the Reparations Commission, while negotiations for a settlement of the relief debts still are pending. There was originally an intention on the part of the Creditor States to make deferment of lien dependent on funding of relief debts, but this plan was abandoned at the request of the Austrian Government.