800.51W89 Lithuania/114

Memorandum by the Acting Secretary of State

The Lithuanian Minister called this afternoon and referred to the “blunder” which he had made in advising his Government that part payment on the debt would not be accepted; he said he had made this recommendation following a conversation last January with Mr. Mills of the Treasury, who indicated that the Executive had no authority to do anything “except to accept full payment.” When he had discovered that the British, Italians and others were making payments in acknowledgment of their debt, he realized that he had put his Government in a false position; the Minister asked me whether I could withhold our note in acknowledgment of his note announcing inability to pay21 until he had communicated with his Government; he would be glad, he said, to know from me whether a payment within a day or two would so alter the situation that there would be no default on the part of his Government.

[Page 899]

I referred, in reply, to the case of Rumania, that Rumania had addressed a note to the Department which had been cancelled and substituted by another note accompanying a cash payment. The Minister said he understood and would communicate at once with his Government.

William Phillips
  1. Dated June 15, 1933; not printed.