863.51 Relief Credits/60: Telegram
The Ambassador in Great Britain (Houghton) to the Secretary of State
London, March 13,
1928—1 p.m.
[Received March 13—1 p.m.]
[Received March 13—1 p.m.]
48. Department’s 58, March 10, 8 p.m.
- 1.
- Control Committee will meet March 15 at which time Austrian Government will state they did not desire to use 1923 loan for electrification purposes but to divert money for another adequate scheme. This meeting is of course in no way concerned with relief bonds since Control Committee represents guaranteeing governments.
- 2.
- As regards European relief debts, creditor governments have already subordinated their liens to permit flotation of proposed new [Page 891] loan. This is the only step formally necessary to permit flotation (United States agreeing), but in order to facilitate placing of loan Austrian Government are negotiating for settlement of relief debts to European creditors providing for reduced payments spread over a term of years. It has always been understood on both sides that identical offer will be made by Austrian Government to the United States Treasury. On March 30th a meeting of representatives of European relief creditors is to be held in London at which it is hoped that terms for settlement of the European relief debts will be reached. (If discussed figures have not already been presented to you by Austrian Legation, I can telegraph data which is also being forwarded by pouch today.) Result of meeting will be confidentially communicated to me at once. The settlement will provide that priority of relief debts over reparations is maintained, and accordingly approval of Reparation Commission will be required before settlement becomes final. It may be hoped that final settlement be reached during April.
Above information has been obtained direct from British Treasury.
This telegram has been repeated to Paris and Vienna.
Houghton