The Yugoslav Minister (Pitamic) to the Secretary of State
Sir: The Protocol of the London Conference of experts for the execution of the proposal of the President of the United States, does not contain any solution of the difficulties which Yugoslavia would encounter if the resolutions of the Conference should be put into operation.
The Protocol, while acknowledging the weight of the arguments of the Royal Government, declares that the Conference is of opinion that the demand for this solution exceeds the limits which were fixed for the Conference. The Yugoslav Government could not adhere to this Protocol and will be forced to take further steps in order to safeguard its contractual rights, in view of the fact that the Yugoslav Treasury, should the resolutions of the experts be carried out, would be placed in a situation such as would give rise to the most serious economic and financial consequences.
In view of the seriousness of these steps the Royal Government, in spite of its difficult situation, has so far abstained from any action until an attempt has once more been made to find a solution such as would enable Yugoslavia to adhere to the London Protocol. The Royal Government, itself desirous to contribute to the realization of such an important international action, takes into consideration only what it absolutely needs to avoid the unsurmountable difficulties of the Treasury. Leaving aside the deliveries in kind, for which it can be seen later if any arrangement whatsoever is possible, the Yugoslav Government is willing to agree, according to the London Protocol, to a delay in the payments due to it by Germany, provided either that it receives (escompte) the difference between the sums to which it is entitled and the annuities of the debts which it owes the United States, Great Britain and France, or that it be allowed a corresponding money credit for the time of the suspension of these payments.[Page 239]
By order of my Government I have the honor to submit what is stated above to the Government of the United States as a formal offer of the Yugoslav Government.
Please accept [etc.]