Papers relating to the foreign relations of the United States, 1928, Volume I

863.51 Relief Credits/91

The Secretary of State to the Austrian Minister (Prochnik)

Washington, April 7, 1928.

Sir: I have the honor to acknowledge the receipt of your note No. 63/R of March 22, 1928, regarding the Austrian relief debt, and of your previous notes which, while discussed with you upon receipt and having the prompt and careful attention of the Government, were not severally acknowledged.

In confirmation of informal conversations, I have pleasure in enclosing copies of the President’s message to Congress of March 20,⁴⁸ together with copies of the Joint Resolution introduced in the Senate and House of Representatives on March 21 (calendar day),⁴⁹

I have observed with gratification the expression, in your note of March 22, of the appreciation of the Austrian Nation and its Government for the attitude of the United States as shown both on previous occasions and in the President’s recommendation to the Congress of appropriate legislation authorizing subordination of the lien and eventual settlement of the Austrian relief debt. While the action of this Government in these latter matters must depend on the will of the Congress exercised in view of all the considerations which it may consider pertinent, the Department of State will be happy to continue its collaboration with the Treasury Department in connection with the consideration of the proposed legislation.

In connection with this general subject, I beg to refer to the mention in your note of February 7, 1928, of the request of this Department for further information desired from the Austrian Government, and to point out that these inquiries were not an examination into the merits of the loan as an investment that may eventually be offered in the American market, inasmuch as the United States Government does not pass upon proposed financing from that point of view. The inquiries rather were made in contemplation of the governmental interest involved and with particular reference to the preparation of the information and analyses which the competent departments of the Government felt should be at hand before a recommendation could be submitted to the examination of Congress.

Accept [etc.]

For the Secretary of State:

W. R. Castle, Jr.

48. Ante, p. 897.
49. For S. J. Res. 118 introduced by Senator Smoot of Utah, see Congressional Record, vol. 69, pt. 5, p. 5092; for H. J. Res. 247 introduced by Representative Burton of Ohio, see ibid., p. 5139.