462.00R296/4230: Telegram

The Ambassador in Italy (Garrett) to the Acting Secretary of State

116. My 109, June 25, 3 p.m.21 Following communiqué published this morning:

“In expectation of an early definite agreement as a result of present negotiations among all the interested governments, the Italian Government as a consequence of its attitude of full and cordial adherence to President Hoover’s proposal, has taken preliminary measures to put the American Plan into effect. For this purpose the Minister for Foreign Affairs in accord with the Minister of Finance has informed the Governments of its debtor States that the Italian Government does not intend to claim the payments falling due to it on July 1 under the Young Plan and the Hague Agreements.

It has simultaneously informed the Governments of creditor States that the Royal Government is holding in reserve pending a decision the payments which Italy is due to pay on the same date”.

Minister for Foreign Affairs informs me that payments due to the creditor States will be deposited in a suspense account with the Bank of International Settlements.

Garrett
  1. Not printed.