462.00R206/4138

Memorandum of Trans-Atlantic Telephone Conversation67

Mr. Boal speaking: Hello!

We sent you a telegram yesterday for Mr. Mellon.68 You got it I suppose. You have it, well it’s cancelled. We are sending another one now for him. Has he arrived yet?

Mr. Marriner: Yes, he is reading the telegram now which arrived this morning.

Mr. Boal: All the action outlined in the one he has is cancelled.

Mr. Marriner: All right.

Mr. Boal: Is there anything new in the situation now?

Mr. Marriner: We sent a telegram asking for some information this morning about the time element. It is very important to have accurately the time of this thing. We have asked the Minister of Finance and Minister of Foreign Affairs about this.

Mr. Boal: You haven’t got any answer?

Mr. Marriner: Not yet.

[Page 72]

Mr. Boal: It makes a great difference in whatever can be worked out.

Mr. Marriner: The Prime Minister himself is taking charge of the whole thing in Parliament tomorrow.

Mr. Boal: For your information the Belgians also have been asking questions. They seem to be very worried about what they are going to do.69

Mr. Marriner: And another thing. Have you got all of our telegrams now?

Mr. Boal: I don’t know. I have all that came in this morning.

Mr. Marriner: That includes the one of the conversation with Laval of yesterday afternoon.70

Mr. Boal: Yesterday afternoon? No, I haven’t seen that.

Mr. Marriner: A conversation yesterday afternoon—the one in which Laval asked us all to invite Mellon over?

Mr. Marriner: When is the Secretary sailing?

Mr. Boal: We don’t know.

Mr. Marriner: Mr. Mellon wanted to know.

Mr. Boal: If he should sail on Saturday, his schedule will remain the same, but it is very dubious whether he will sail Saturday. It all depends on this situation.

Mr. Boal: When is Mr. Mellon going to see anyone over there?

Mr. Marriner: Tomorrow noon.

Mr. Boal: I want to be sure of the time.

Mr. Marriner: He is lunching with the Prime Minister tomorrow noon, but is seeing no one tonight.

Mr. Boal: They may want to get something more to him and I just want to be sure of the time. He’s not going to see them before then.

Now, there’s a rumor here that the French have not yet asked the Germans to come.

Mr. Marriner: The rumor is here that they haven’t and they aren’t going to until after Friday.

Mr. Boal: The Germans are not coming on Friday and you don’t know yet whether they’ve been asked?

Mr. Marriner: It’s not decided yet.

Mr. Boal: You think they will. Mr. Mills wants to talk to Mr. Mellon. Right here. Hold the ’phone.

Mr. Mills: Is that you Mr. Mellon? I suppose you got that message in London this morning. We want to withdraw those two plans—A and B—we suggested in that message. We gave you two plans in that message. We want to withdraw both those plans—A and B.

Mr. Mellon: You want to withdraw those?

Mr. Mills: And we are sending you another cable here now with [Page 73] our new suggestions and if you discuss anything with those people tonight do it entirely on the basis of our original proposal and then after discussion with them, advise us as to how you look at the situation.

Mr. Mellon: Discuss it on the basis of the original proposal?

Mr. Mills: Yes.

Mr. Mellon: And without any approval or acquiescence in the idea of the B. I. S.?

Mr. Mills: Without your making any suggestions at this time.

Mr. Mellon: Without making any further suggestions and then—

Mr. Mills: And then we would like to have your advice in the morning on the basis of the discussions with them.

Mr. Mellon: I am not going to get very far if I can’t fall back on any alternative.

Mr. Mills: But you will see them again tomorrow.

Mr. Mellon: Yes.

Mr. Mills: I think it is all right to discuss alternatives but we would not like to make any commitment until we know what you want to do. Another cable which we are sending you now—I am elaborating that plan which I worked with Gilbert71 and which referred to a deposit as an evidence of good faith and I personally think that that is the most hopeful solution and Gilbert thinks so too, and I am sending you in a cable a complete memorandum covering that and I think if you could discuss the whole situation with them tonight, insisting as strongly as you can on the original purpose [proposal?] and advise us in the morning. I think that is the best you can do right now. The telegram will begin coming in two hours from now.

Mr. Mellon: I have all that. I have just been in Paris a very short time, but am familiar with what has gone back and forth. I was going to say that I am pretty well content that nothing can be accomplished without some definite offer from us, but I will discuss the broad plan of the President’s proposal. What does he propose to do about A or B?

Mr. Mills: Plan A is very bad. A is very bad because the President insists on tying it up to all our debt agreements. So I think you better forget A. I think B is very good. I think A is so complicated that we better drop that for good, if it is tied up to our debt agreement. I think B has considerable promise, but I think that Gilbert’s deposit plan is the best of all.

Mr. Mellon: I will find that out from Lacourgaillet [Lacour-Gayet].

Mr. Mills: Well, that is the one I discussed with Lacourgaillet more. You will get more details in this cable.

[Page 74]

Mr. Mellon: Well, but I talked pretty fully with Lacourgaillet. I don’t recall what that is.

Mr. Mills: I am afraid he did not understand it. In any event I am giving you that plan in detail in this cable. Now you understand the President’s position is that what he would like would be to get a full discussion by you of his original proposal and any suggestions that they would care to make. Then he would like your advice without making any commitments until he has the benefit of your advice.

This for your further information. We got a telegram from Borah this morning saying if the French plan was accepted he must withdraw his support so that I think that puts plan “A” right out even if there were no objections.

Now I think we are all clear aren’t we? And I am available at any time if you want me.

Mr. Mellon: I am doubtful that it is within the range of possibility to come to any conclusion without something like A or B or some modification in that message.

Mr. Mills: I agree with you, but I think that B or the new plan is the one that is better. I think A is too complicated if we tie our debts to it.

Mr. Mellon: It would seem that they could grasp it better.

Mr. Mills: I think B might be acceptable and I think the plan I am cabling you now would be acceptable, but the President doesn’t want you to make any suggestions until you have heard everything they have to say and then advise us.

Mr. Mellon: We must remember that they are in a difficult position in view of the questioning in Parliament on Friday and may not want to make any definite statement.

Mr. Mills: It seems to me that they could say that you are in Paris and they are continuing discussions with you and that will permit them to get by.

Mr. Mellon: I think I have a pretty full grasp of it all.

Mr. Mills: That’s all.

  1. Between Mr. Mills and Mr. Boal in Washington and Mr. Mellon and Mr. Marriner in Paris.
  2. See footnote 60, p. 65.
  3. See pp. 175 ff.
  4. See telegram No. 351, June 24, 5 p.m., p. 58.
  5. S. Parker Gilbert, Agent General for Reparation Payments, 1924–30.