863.51 Relief Credits/113: Telegram
The Ambassador in France (Herrick) to the Secretary of State
Paris, May 21,
1928—5 p.m.
[Received May 21—3 p.m.]
[Received May 21—3 p.m.]
128. Reparation 89.
- 1.
- Reference proposed new Austrian loan (see Reparation conference decision number 3670 of January 14, 1928).52 Austrian Government has now made application to Commission requesting that certain Austrian revenues (customs gross receipts of tobacco monopoly and such other revenues as may be required to make good any deficiencies in receipts from foregoing) be excepted in favor of the contemplated loan from the first charge under article 197 of the Treaty of St. Germain.
- 2.
- British delegation has prepared a draft decision along lines requested by Austrian Government which will be considered by the Austrian Section of the Commission on May 23 before being brought before the Commission at its meeting on the 26th. The preamble of this draft refers to the understanding that: “The states holding the relief bonds issued by Austria represented on the International Relief Bonds Committee have consented in principle to the release from the prior charge in favor of the relief bonds for the period of the new loan not exceeding thirty years of such securities as might be necessary for the said loan”. [Paraphrase.] The position of the United States as a power which holds relief bonds is not referred to. Is it the Department’s wish that a reference should be made in the understanding’s preamble as to legislation having been introduced in the United States Congress for subordination of the lien of the United States respecting the relief bond to a lien favoring the contemplated new [Page 907] loan? There appears to me to be nothing to be gained by such a move, and, in my opinion, the draft is satisfactory in its present form. In any case I can make a brief statement, when the question comes before the Commission, of the position of the United States, should this appear at the time to be desirable. The Austrian Section will meet Wednesday morning, May 23, and I respectfully request instructions. [End paraphrase.]
Herrick