462.00R296/5237: Telegram

The Secretary of State to the Chargé in Latvia (Cole)

38. Reference is made to the President’s public statement of June 20, of which the Legation probably has text, proposing, subject to confirmation by Congress, to postpone all payments upon the debts of foreign governments to the United States Government payable during the year beginning July 1, 1931, conditional on a like postponement for 1 year by other creditor powers.

It is understood that the Latvian and Estonian Governments are not creditors in respect of intergovernmental debts, reparations and relief debts. This Government, therefore, believes that these Governments, so far as they are concerned, will have no difficulty in accepting unconditionally the President’s Proposal as set forth in his statement of June 20.

You are requested to obtain at an early date a statement of the attitude of the Latvian and Estonian Governments with regard to the acceptance of the President’s Proposal.

Telegraph substance of statements.