800.51W89 Rumania/164

Memorandum by the Acting Secretary of State

The Rumanian Minister reminded me that he had spoken to the Secretary on various occasions in regard to the debt situation; that he had continually asked for advice as to how he should proceed; June 15th was drawing near and he would like to be able to send some sort of telegram to his Government. He went on to explain the impoverished condition of Rumanian finances and that it would probably not [Page 911] be possible for Rumania to make its June 15th payment. I pointed out that all such matters were in the hands of the President and that he alone could speak authoritatively. Inasmuch as Rumania had not defaulted on its December payment, I assumed that Rumania and Great Britain were in the same category. I told him that the British had been informed that, while we had no communication to make with them on the subject in connection with the June 15th payment, we would be glad to receive from them any proposition which they would care to make. I explained that the French and the other defaulting nations were in a different category and that we had already informed them that we could not even receive from them a communication regarding June 15th until they had paid their December installments. The Minister said he would send a telegram to his Government along these lines.

William Phillips