462.00R296/4137
Memorandum of Trans-Atlantic Telephone Conversation 57
Boal: Mr. Edge, this is Boal. The Secretary wants me to get from you a dictation of the message which the Cabinet framed this morning for our Government on reparations.
Edge: I have not got the text of that message here. It is at the Chancery. But I was present when it was put on the wire this afternoon at 2:00 o’clock, French time, to go to Claudel, who is supposed to deliver it at once. You should have it in about an hour. The message I have at the Chancery is in French.
Boal: That is all right. You can read it to me in French and I can take it in French.
Edge: All right. I will put in a call for you at the State Department. You should, however, receive the message from M. Claudel at 3:30 this afternoon. While you know the reply, nevertheless it is considerably more conciliatory in tone than the project under discussion.
Boal: It is more conciliatory intone?
Edge: There is also another element which has been introduced into it from Germany, that we have wired you fully about and which will be interesting. They have asked the German Prime Minister to come to Paris and talk to them and then confidentially Mr. Mellon is coming over tomorrow, not of course, for the purpose of negotiation or anything of that nature, but his presence here will be useful.
Boal: When will the Germans be in Paris?
Edge: There has been no definite engagement made, of course. The Council this morning asked Bruening to come over as soon as possible. That request was in answer to Bruening’s broadcast which you must have in the United States. Do you know about that?
Secretary: Mr. Edge, this is Mr. Stimson on the wire.
Edge: That may be just one of their excuses. That is about all I can say now. There is nothing else I can tell you.
Secretary: In what respect was the message more conciliatory?
Edge: Well, for example, it did not say that they would not consider a compromise, but hoped that you would understand that the only reason for not agreeing in toto with the President’s proposal was what they termed the legal obstacle to the unconditional payments which would mean a deviation from the agreements and accordingly from the Young Plan. They, of course, are in the position of having Party opposition and of having the proposal, which they present in their note, passed unanimously in the Council, with all practically [Page 61] supporting their present position, and they point out in their note the angle that they are in; that is, in the same position that we are but reversed, or that we are with Congress supporting the President’s proposal. Their Parliament still has to pass on it and is inclined to oppose it.
There isn’t anything in the note that removes the demand for the unconditional reparations to go to B. I. S. for distribution.
Secretary: Does it leave a possible ground for negotiations?
Edge: Yes.
Edge: That’s all.
Secretary: The only avenue of escape that I see at the present moment would be to have those unconditional annuities deposited with the B. I. S. as security.
Edge: That is about what their proposal amounts to.
Secretary: No—their proposal—is that they should be deposited with the B. I. S. for use for relief of other European nations. That means the Little Entente.
Edge: That is right but the directors of the Bank would decide.
Secretary: No, the only thing that we see that would be possible would be…
Edge: This could probably be helped. I am sure of that fact, Mr. Secretary, as the final conclusion of my own reaction. I had half an hour this afternoon following the Council meeting with Laval.
Secretary: You have been talking with Laval?
Edge: I was with Laval an hour ago. He gave me a copy of the note and we talked it over again. He is extremely anxious that there should be no withdrawal and his statement to that effect is in the telegram which is now on the wire. They hope there will not be any opposition at all to this agreement. I gave him practically the full text of the President’s statement in the telegram we received this morning.58 And we had it translated in French and it was delivered and read to the Council of Ministers. That is all, Mr. Secretary, unless there is something you want to ask me.
Secretary: Only, I was cut off while you were telling me of the talk with Laval. Did that indicate that he was desirous of keeping the door open for negotiations?
Edge: He read your telegram this morning. He was very fearful of a withdrawal and hopes you will understand their political situation. They are just as nervous as cats at the moment and the only thing to do is to wait for the Parliament action on Friday.
Secretary: They are very likely to get a withdrawal if they are not careful.
[Page 62]Edge: Don’t think for a moment that I haven’t told them that a withdrawal was likely.
Secretary: But we are trying to save their face.
Edge: Nevertheless this German thing is interesting and I think a respite for 24 or 48 hours would perhaps be the best thing as near as I can see if there is anything in getting the Germans over here after all is said and done.
Secretary: Just hold on a minute. Can you tell me from memory what the note said in regard to the repayment by the B. I. S. of the money deposited with them. When was that to be done? I am anxious to know what their reply says in regard to the time when the money which they asked to have deposited with the B. I. S. is to be paid out again by that bank—one year, two years, three years, or what?
Edge: They haven’t as yet informed me of that. It is all in French, but as I recall it (we read it simply without writing a translation and I can’t be accurate) but as I recall it it did not have any very definite plan. That money might be used for the purpose of relief. They should be willing to compromise on the distribution of the money. But I do not consider that that was specified in the note.
Secretary: Get the note and telephone it to Boal.
Edge: It is his opinion that they are…
Secretary: They would do what about the distribution?
Edge: They would compromise on the distribution of unconditional payments.
Secretary: Well, you get the note and telephone it. Goodbye.