462.00R296/2909: Telegram
The Secretary of State to the Chargé in France (Armour)
[Paraphrase]
Washington, May 21, 1929—6
p.m.
167. Reparation No. 75. Your No. 225, May 20, 5 p.m., Reparation No. 247.
- 1.
- President will recommend to Congress that the United States waive 10 percent of total amount of Army costs, which is $292,663,000. Converted into marks at 23.82 cents to the mark the total amount of Army costs comes to 1,228,000,000 marks. Deducting 10 percent leaves net amount of 691,000,000 marks due as of September 1, 1929. Annuity of 31,231,000 gold marks for term of 37 years will pay this amount with interest at 5½ percent on all deferred payments, Under [Page 1078] the present plan we are receiving 55,000,000 marks a year, which would retire debt of 691,000,000 marks in about twelve and one-half years. Interest would continue on difference between 55,000,000 marks and 31,231,000 gold marks beginning with the first year.
- 2.
- You are correct in your interpretation of my message as giving you authority to accept 2¼ percent of amount available for reparations over period of 37 years, and thereafter flat rate sufficient to discharge balance of claim in 15 years; this Government would prefer, however, the flat annuity on mixed claims.
- 3.
- Not under any circumstances can we agree to a settlement which does not provide for discharge in full of obligations on account of mixed claims as established in the Settlement of War Claims Act of 1928, which an annuity of 40,800,000 marks over period of 37 years only will not do. If Germany is not willing to extend payments beyond the 37th year, the annuity on the mixed claims account for term of 37 years must be 50,000,000 marks a year.
Stimson