863.51 Relief Credits/120: Telegram

The Minister in Austria (Washburn) to the Secretary of State

24. Department’s telegram 27, May 29, 10 p.m. Keen disappointment and some despondency in official quarters. Press temperate in comment, though opposition papers seeking to capitalize incident politically. Chancellor feeling his position somewhat weakened is making statement in Parliament this afternoon and has just supplied me with advance copy of his remarks. He takes occasion to emphasize his thanks to the President and Secretaries Kellogg and Mellon for their efforts to secure passage of resolution and makes also complimentary allusion to me. He seeks to create the impression that the loan is only postponed and that with strict economy the economic consequences of the delay will not be disastrous to the State.

Washburn