371.115 St 2/129
The Minister in Rumania (Owsley) to the Acting Secretary of State
[Received January 8, 1934.]
Sir: I have the honor to refer to the Department’s instruction No. 18 of November 10, 1933, and to inform the Department that on the several [Page 685] dates hereinafter mentioned the Legation has received communications from Mr. J. P. Hughes, General Manager of the Româno Americanǎ, which is an American institution and, the Legation is informed, controlled by the Standard Oil Company of New Jersey, asking the cooperation of the Legation in protesting on behalf of this Company against the suspension of payment of coupons on the war damage bonds held by the American company under a settlement between the Rumanian Government dated August 21, 1928, in consideration of damages inflicted to the Româno Americanǎ properties by order of the Rumanian Government in 1916.
I have the honor to enclose a copy of the communication dated Bucharest, December 6, 1928 , addressed to Mr. Titulescu, Minister for Foreign Affairs, presenting the Legation’s point of view in this matter. I would particularly ask the attention of the Department to the wording of my communication to the Foreign Ministry in that it does not undertake to declare the war indemnity bonds held by the Româno Americanǎ to have preference over any other outstanding obligations of the Rumanian Government. It is my intention to direct the attention of the Rumanian authorities to their failure to pay to the Româno Americanǎ the amount of money now apparently due under the provisions of certain obligations held by the Româno Americanǎ and executed by the Rumanian Government, and the question of priority of outstanding obligations does not enter into it.
Certainly the late Minister of Finance, Mr. Madgearu, or some properly accredited official of the Finance Ministry should have consulted with a representative of the Româno Americanǎ, as the owner and holder of Rumanian obligations, before an arbitrary decision of the Rumanian Government was published in the official Monitorul Oficial (No. 278) as was done under the date of November 30, 1933.
The position of the Româno Americanǎ as presented to the Legation clearly appears in a letter dated November 28, 1933, addressed to me, which has attached to it and made a part of the letter a communication under date of November 15, 1933 to the Minister for Foreign Affairs, Mr. Titulescu, over the signature of one H. E. Medlicott. As I understand, Mr. Medlicott is the attorney and the personal representative of the Româno Americanǎ out of the London office. Copies are herewith enclosed for the further information of the Department;39 also a second letter addressed to me under date of December 4, 1933, and its enclosure.39
Bearing in mind the instructions of the Department hereinbefore referred to, I have assured Mr. Hughes, the representative of the Româno [Page 686] Americanǎ here in Bucharest, that I will use my best energies to assist in the proper presentation of the position of his company in this case, which presents several delicate sidelights.