683.51 Relief Credits/134
The Secretary of State to the Minister in Austria (Washburn)
Sir: The Department transmits herewith for your confidential information the substance of a conversation which took place on June 1, 1928, between the Italian Ambassador at this capital and an Assistant Secretary of State.57
[Page 912]The Italian Ambassador stated officially, on instructions from his Government, that the latter does not consider satisfactory the proposed present arrangement for a further reconstruction loan to Austria. He added that Italy is not disposed to make any further sacrifices because experience has demonstrated the fact that Austria will not bear her share.
Notwithstanding this attitude of the Italian Government, this Government desires to avoid, if possible, sharing with Italy the responsibility of blocking the proposed loan. For this reason and unless unforeseen developments should meanwhile occur necessitating a different course of action, the attempt to secure from the Congress the necessary legislative authority for the subordination of lien and funding of relief indebtedness will be continued at the opening of the next session in December.
You are hence requested to continue to report any developments in the situation which may be of interest to this Government or may have a bearing upon its proposed course of action.
Similar instructions are being addressed to the Missions at Rome, Paris and London.
I am [etc.]