863.51 Relief Credits/53: Telegram
The Secretary of State to the Ambassador in Great Britain (Houghton)
Washington, March 10,
1928—8 p.m.
58. Your 46, March 9, 4 p.m.
- (1)
- Department has been informed that a meeting of Control Committee will be held March 15 at which new proposals from Austria in regard to expenditure of proceeds of proposed loan and possibly other matters will be considered.
- (2)
- The Treasury has publicly announced that it is proposed to recommend to Congress that authority be granted to subordinate the lien of the United States on Austria’s assets and revenues to permit flotation of proposed loan, subject of course to similar action by other governments concerned and Separation Commission. If legislation is not introduced at the earliest possible moment, there is little chance of obtaining it at the present session of Congress. The actual introduction of legislation has, however, been delayed by the lack of definite data as to the status of proposed arrangements for settling Austria’s relief obligations. These are held by the United States and eight other governments, and contain pari passu clause. In order properly to explain to Congress request for legislative authority, the Department of State and the Treasury must have definite picture of situation. Otherwise representatives appearing before the congressional committees might be subject to embarrassment from lack of information.
- (3)
- In the circumstances I think you should have a frank talk with the Foreign Office, explaining the above situation and inquiring whether such meeting is to be held, and if so, where. If it is to take place, you should say that you would be interested to receive specific information as to matters to be considered and also the views of the British Government as to the prospect of agreement with Austria in the near future as to basis for settlement of relief debts. You should also inquire whether in fact definite action in authorizing proposed loan is to be conditioned on settlement of relief indebtedness, or if not actually conditioned or connected whether both propositions are to be settled simultaneously.
- (4)
- Telegraph reply as soon as possible. Repeat these instructions to Embassy Paris for information and to Legation Vienna for telegraphic comment. Similarly repeat your reply. See for your further information Department’s 66, March 9, 7 p.m. to Paris. Embassies [at] London and Paris and Legation Vienna should keep each other mutually informed.
Kellogg