863.51 Relief Credits/48: Telegram

The Ambassador in Great Britain ( Houghton ) to the Secretary of State

[46.] Your 56, March 5, 7 p.m. Discreet inquiries tend to show that the point of view expressed in the Department’s telegram is correct, namely, that European Governments holding relief bonds are conditioning the subordination of their lien in favor of the new loan upon Austria agreeing to a definite settlement of relief credits. This viewpoint was known in influential circles here about a fortnight ago and as far as can be found out still prevails. I understand that the Austrians have agreed in principle to the settlement of [apparent omission] has not yet been agreed upon.

I learn informally from the Italian Embassy that there is to be a meeting of representatives of the interested Governments in the near future.

Repeated Vienna.

Houghton