800.51 Johnson Act/2
Memorandum by the Secretary of State
During the call of the British Ambassador,2 he made earnest protest and complaint against the proposed passage of Senator Hiram Johnson’s Bill which would prohibit debtor governments in default to the United States government from floating loans in the United States. He stated that his government had undertaken to cooperate to work out an adjustment of their debt due our government in an amicable way and to avoid what would be considered a default. He then added that should his government fall under the ban of the Johnson Bill just as France which had deliberately defaulted, it would be bitterly resented by his government. I told the Ambassador that of course the American people had been very much aroused by statesmen, politicians and demagogues with respect to the payment of war debts due the United States government from other governments; that Congress was a coordinate and independent branch of the Federal Government and had an equal right to express its attitude on the debts, and that in all probability it would be very difficult for the Executive branch of our government to influence the Congress contrary to this disposition. I stated finally that I would be glad to make known his views and those of his Government, as he expressed them, to the President and to some of our legislative colleagues in Congress. I naturally made no commitments in the circumstances. I did add that the fact the Johnson Bill had been pending for many weeks and had once passed the Senate and was then reconsidered and held on the Calendar for two weeks without any complaint whatever from any representative of the debtor governments abroad, naturally had led Congress to the conclusion that those governments were not seriously concerned about the passage of the proposed Johnson measure.
- Sir Ronald Lindsay.↩