462.00R296/4697
The French Ambassador (Claudel) to the Acting Secretary of State
Mr. Under Secretary: By instructions of my Government, I have the honor to bring to the knowledge of the Department of State the following information on the exchange of views which have just taken place at Paris between His Britannic Majesty’s Government and that of the French Republic on the subject of the approaching meeting at London of a committee of experts and a conference of the Powers interested in carrying out President Hoover’s proposal.
The dates proposed by the British Government were, respectively, Monday, July 13, for the committee of experts, and Monday, July 20, for the conference.
In reply to the proposals in question, my Government, in the evening of July 7, advised Lord William Tyrrell52 that it was prepared, in principle, to accept the English suggestion in the thought that it was essentially a question of adapting the Hoover proposal to the Young Plan, but that it considered that the dates indicated [Page 166] were too near in view of the contemplated exchange of visits between the German and French Ministers, and too close together as the pourparlers between experts would probably require more than a week.
It was added, that because of the French national holiday of the 14th of July, it would be desirable to set Friday the 17th of July for the meeting of the experts. As to the possible conference of the Ministers, the development of the work of the committee of experts would permit of determining whether such a conference should be called and for what date.53
Furthermore, before giving its definitive assent, the French Government desired to know what countries were expected to participate and what would be the precise program of the conference. In its opinion, the committee of experts should be composed only of English, Belgian, French, Italian, Japanese, German, and, if possible, American representatives. This committee should appoint two sub-committees, one of which would have to settle the questions interesting the creditor Powers only, and the other, the questions concerning those Powers as well as Germany.
In reply to the suggestions mentioned above, the British Government stated, on July 8:
- 1.
- That it consented to the postponement to the 17th of the meeting of experts, provided that the French Government consented to notify the Bank for International Settlements that provisionally, and pending the outcome of the conference, no payment would be required from the German Government on July 15th;
- 2.
- That it consented to the postponement of the conference of Ministers to a date which would be set later;
- 3.
- That it accepted the participation in the conference of French, English, Belgian, Italian, Japanese, German, and, if possible, American delegates;
- 4.
- That the purpose of the conference should be to institute the measures necessary for carrying out the Hoover proposal and to recommend the adoption thereof;
- 5.
- That it accepted the French suggestion that the committee of experts should appoint two sub-committees in accordance with the formula suggested by the French Government.
The British Government proposed, in closing, to issue immediately the invitations for the conference of experts.
In reply to the British communication, Mr. Briand informed Lord William Tyrrell, on the same day, that the French Government agreed with the British Government on the points enumerated above. Nevertheless, [Page 167] as regards point No. 1, the Minister of Foreign Affairs of the Republic feels impelled to point out that the mechanism contemplated in the Franco-American agreement of July 6 for the unconditional annuity should also become effective on July 15. The French Government, therefore, proposes to inform the Bank for International Settlements that the Reich will not have to pay the conditional annuity on July 15 and that the unconditional annuity is to be placed at the disposal of the Reichsbank immediately. The latter is to give a provisional receipt which will subsequently be exchanged for the bonds contemplated in the Franco-American agreement as soon as the details of such bonds shall have been settled. The French Government does not think that this procedure can arouse objections on the part of Great Britain. Moreover, the procedure appears to be in conformity with the suggestion which was made on July [June] 26th to the Financial Attaché at this Embassy by the Under Secretary of the Treasury.
Mr. Briand indicated to Lord William Tyrrell, however, that the notification which the French Government proposes to give to the Bank for International Settlements and, consequently, the suspension of the payments of July 15, remained subject to a previous decision of the Bank agreeing without reserve to the French request relative to the guarantee fund referred to in Article 4, paragraph B of the Franco-American agreement.
The Minister for Foreign Affairs of the Republic indicated in closing that, subject to the reservations mentioned above, the French Government agreed with the British Government with respect to the meeting of the experts on July 17th under the conditions contemplated.
Please accept [etc.]