800.51W89 Latvia/137
The Latvian Minister for Foreign Affairs (Salnais) to the American Chargé in Latvia (Cole)20
Monsieur le Chargé d’affaires: With reference to the correspondence exchanged between our Governments concerning the indebtedness of Latvia to the United States, I have the honour to inform you that my Government have followed with the closest attention the negotiations between the American and the British Governments on the question of war debts, which were temporarily suspended on November 6th, last. From the Notes exchanged on this occasion between the United States Secretary of State and the Ambassador of Great Britain it results that “the present unsettled economic and financial situations” have “made an adjournment advisable”.
In this connection I should like to point out that, so far, the Latvian Government have had no opportunity for discussing with the United [Page 897] States Government the revision of the Debt Funding Agreement of September 24th, 1925, which was proposed in the correspondence between our Governments and confirmed in the Aide-Mémoire of January 26th, 1933, in which the United States Secretary of State announced that “the President would be glad to receive separately at Washington a representative or representatives of the Latvian Government for discussions having a similar scope and purpose (as those conducted with the British Government) after the proposed discussions with the British Government had been completed.”
These latter negotiations having now been suspended in the circumstances described above, my Government are of the opinion that the negotiations between Latvia and the United States must of necessity be postponed, since they were made dependent on the completion of the discussions between the United States and Great Britain.
In view of the foregoing, I am authorized by my Government to propose to the American Government to accept on December 15th, next, a “token payment” of $8500.—, constituting approximately 5% of the payment due on that date, in acknowledgment of the debt pending the revision of the existing Agreement, in which respect my Government maintain the point of view exposed in the previous correspondence on this subject.
Please accept [etc.]
- Transmitted to the Department by the Chargé in Latvia as enclosure to his despatch No. 1725, November 24; received December 5.↩