467.11/900: Telegram

The Secretary of State to the Consul at Istanbul (Elting)

For Nielsen. Your September 20, 9 a.m., and September 21, 6 p.m.

(1) The present value of the Turkish offer of $1,200,000 payable in 12 annual installments is $995,400, calculated at 3 percent interest. Department considers that an amount should be obtained which would give a present value of $1,200,000. This might be done by increasing the amount to approximately $1,500,000, or by adding interest, which would bring total payments up to approximately this figure. For your information, 2½ percent is lowest present interest rate on short term borrowings of our government.

If a little delay can be safely had for that purpose, endeavor obtain settlement along these lines.

(2) If offer must be accepted or rejected immediately, you are authorized to accept.

(3) To the extent that may be possible, the agreement should show categories or specific cases that were eliminated from consideration in arriving at lump sum, since otherwise all original claimants will seek to participate in distribution.