800.51W89 France/785: Telegram

The Secretary of State to the Ambassador in France (Edge)

455. Your 745, December 23, 8 p.m. I approve of the position which you took in your conversation with Boncour. I have taken a similar position here with Claudel. Claudel seemed to be under the impression that Mr. Roosevelt in his correspondence with Mr. Hoover had taken the view that debts might be discussed immediately with any nation. I told Claudel that it did not seem to me [Page 752] that Mr. Roosevelt had been as explicit on this subject as Claudel seemed to think. I pointed out that at any rate it was the position of the Administration and evidently of Congress that immediate discussions would only be had with nations who had met their obligations.

As to whether there is any new fact which can be used in a new presentation to the Chamber by Boncour, I can only refer to the events which have already transpired since the French Chamber voted on December 14th. But it would appear that since that date the situation has been very much advanced and the attitude of this and the incoming administration made much more definite by the events which have since occurred.

First, on December 16th, I received an informal letter from Claudel, which read as follows:

“As I had an opportunity to inform you this morning, Mr. Herriot, although he has no longer the responsibility of current affairs and although he has refused the task of forming a new cabinet, is quite ready to give as much personal help as possible for the solution of present difficulties.

“I think that a frank and friendly explanation of your views about the difference which exists between the American and French positions on the War debts should be a very valuable contribution to the cause of good understanding between our two nations which is as dear to your heart as it is to mine.

“All France considers you as an old and proven friend of our country. We have not forgotten that from the first moment you fought in the ranks of our soldiers.

“We have received proof of your understanding of our problems during your service as Secretary of State.

“I am sure that any statement from you would be received by our people with the greatest consideration.”

To this I replied informally under date of December 17th as follows:

“I have been impressed by the friendly assurances which you have brought me from M. Herriot and by his inquiry in the same spirit as to whether anything can be done to resolve the unfortunate situation which has arisen. As an old friend of France I, like M. Herriot, am deeply concerned over any situation which may cause misunderstanding between our two nations and am actuated by a sincere desire that it may be resolved as speedily as possible. I answer M. Herriot’s inquiry in that spirit.

“In the first place, I note with satisfaction that the principle of payment of the December 15 installment does not seem to be in question and that the difficulties which arose in the Chamber concerned chiefly the conditions which the Chamber desired to attach to such payment. I was obliged to point out to the British Government, in [Page 753] my note of December 11, to which the Chamber called attention in its resolution, that the Secretary of the Treasury, who is the agent of the United States for the receipt of debt payments, has no authority to accept payment from any government upon conditions, or in any way except as provided under the terms of the Funding agreement, all changes in that Agreement being subject to the decision of Congress.

“But if at the time of the Chamber’s action there existed in France any lack of clarity as to the willingness of the President to discuss with France the subject of the French debt, I think it should be sufficient to call to the attention of your governmental authorities his statement of November 23, that ‘it is unthinkable that within the comity of nations and the maintenance of international goodwill our people should refuse to consider the request of a friendly people to discuss an important question in which they and we both have a vital interest, irrespective of what conclusions might arise from such a discussion’.90

“In this spirit, and with the position of my Government made clear, as in our correspondence I have tried to make it, I still hope that a solution may be found by your Government, and, if so, I am confident it will be greatly to the interests of both the French and American people and to the welfare of the world.”

A draft of my letter of December 17th was promptly sent to the French Government. These letters were exchanged on the suggestion of Herriot that some such step toward conciliation similar to the one you suggest might move the Chamber to reconsider its vote.

Second, the President sent his message to Congress on December 19 announcing the purpose and disposition of this Administration to discuss debts with any of our debtors who have sought to maintain their obligations to us.

Third, the correspondence between the President and Roosevelt,91 while it indicates that the President and the President-elect are not in accord as to the method or machinery of discussion, nevertheless clearly indicates that both are ready to have discussions begin.

The present administration stands ready to receive any views or facts which any of the debtor nations not in default desire to submit. Since it is obviously impossible to accomplish any definitive settlement during this administration any discussions between now and March 4th, would naturally be of an exploratory nature and the information or data resulting would be made available for the incoming administration. Under these circumstances any further steps seem to depend upon whether the debtor nations, not in default, [Page 754] desire to initiate discussions at the present juncture or wait until after March 4th.

I told Claudel this morning that I had already informed the British Ambassador to the above effect. Claudel seemed to be under the impression that as a result of the correspondence between the President and Roosevelt matters were in a deadlock and there was nothing that could usefully be done. I said that I did not entirely share this view and that particularly in the case of France it seemed most desirable that the December 15th installment should be paid as soon as possible. I reminded him of the fact that Congress had so far been restrained in its expressions on the foreign debt situation and pointed out that it would be very helpful if France could pay before Congress proceeded to take any further action or indulged in an inflammatory debate.

In view of the fact that the whole subject seems to have subsided for the time-being in Congress, I think it would not be advisable to attempt to procure a declaration from the Senate committees as suggested in your cable under reference, particularly as it is very doubtful whether any such declaration could be obtained.

Stimson
  1. See Department of State, Press Releases, November 26, 1932, p. 338.
  2. Ibid., December 24, 1932, pp. 453–459.