800.51W89 Latvia/130
The Latvian Consul General at New York (Lule) to the Acting Secretary of State
Sir: Under instructions from my Government, I have the honor to refer to the viewpoint of the Government of Latvia, concerning the [Page 895] indebtedness of Latvia to the United States of America, as expressed in the note of the Minister of Foreign Affairs of Latvia to the American Minister to Latvia, dated December 15, 1932,16 and in my note of the same date to the Secretary of State of the United States,17 to which a reply, dated December 22, 1932,18 was received from the then Secretary of State, indicating the willingness of the President of the United States to survey the entire debt situation. Further I have the honor to call your attention to the Aide-Mémoire handed me by the Honorable Henry L. Stimson, on January 26, 1933, concerning a discussion of the debt question, and containing a statement to the effect that an appropriate date for such discussion would be suggested by the United States Government. The willingness of the Latvian Government to send a delegate or delegates to participate in these discussions was expressed by the note of the Minister of Foreign Affairs of Latvia to the American Minister to Latvia, dated February 9th, as well as by my note of the same date to the Secretary of State of the United States.19 However, up to the present time, no notice proposing a date for the said discussions has been received by the Government of Latvia. My Government state with regret that no opportunity for a survey of the debt situation has been given them, to the present date, June 15th, when a new interest payment has become due under the Debt-Funding Agreement of September 24, 1925.
I am directed, Sir, to inform you that the Government of Latvia still adhere to the motivation and viewpoint as contained in their note of December 15, 1932. Inasmuch as the international situation has become even more complicated and involved since that date, due to exchange and transfer difficulties, and inasmuch as the foreign trade of Latvia has suffered a further, considerable decline, and the budget problem presents increasing difficulties, the Government of Latvia is faced with the necessity, which they sincerely regret, of refraining from payment of interest due on June 15, 1933, until the proposed negotiations concerning a revision of the Debt-Funding Agreement, have been brought to a conclusion.
However, I have the honor to advise you, Sir, that my Government has not the slightest intention of interfering with or barring the negotiations which they anticipate with the Government of the United States, regarding Latvia’s indebtedness, by an unilateral decision or action. It is to avoid such an impression that the Government of Latvia has this day transferred to the United States Treasury, the amount of $6,000 (six thousand dollars), constituting approximately 5% (five per cent) of the interest payment due June 15, 1933, with [Page 896] the same reservation, however, as was made in connection with the last payment, that of December 15, 1932, to the effect that the Government of Latvia do not consider this transfer as resumption of payments under the Agreement of September 24, 1925.
May I request, Sir, that the Department of the Treasury of the United States, be advised accordingly.
Please accept [etc.]
- Foreign Relations, 1932, vol. i, p. 788.↩
- Not printed.↩
- Foreign Relations, 1932, vol. i, p. 789.↩
- Neither printed.↩