462.00R296/2774: Telegram
The Chargé in France ( Armour ) to the Secretary of State
[Received 1:20 p.m.]
139. From Kellogg.
Department’s No. 103, April 9. I never saw Young’s statement of March 28 and its accompanying memorandum on annuities until [Page 1041] this morning. On this subject I had no understanding whatever with Young and Morgan. The conditions under which our Government raised no objections to their appointment were stated in my telegram No. 368, October 31, 1928, to Embassy in Paris.25 I do not think that the President discussed this subject at all, but I was not present at their interviews either with him or with Mr. Mellon.
I have seen your No. 102, April 8, and offer following comment on your summary:
- 1.
- I agree with your view; I do not understand, however, that it is an essential element of plan that an American should serve as director of the International Bank. Presumably this provision was inserted to give the United States opportunity for representation if the Government desired it; it would be for you to decide that question later when it arises.
- 2.
- I agree with your view that it would be unfortunate were the payments to be so divided that one category would correspond exactly to debt payment made by Allies to the United States. I cannot say whether such arrangement should be made, is in fact contemplated, or whether it would so appear in final report.
- 3.
- I agree wholly that on mixed claims account there should be no reduction in our share, and I understand that Young has indeed recommended no change.
I have arranged to see Young and Morgan this afternoon.