548.D1/202

The Under Secretary of State (Phillips) to the American Representative on the Committee for Refugees From Germany (Chamberlain)

My Dear Mr. Chamberlain: I am writing you regarding the matter of an American Government contribution to the funds of the High Commission for German Refugees because as our representative on the Governing Body I know you are closely interested and further because it occurs to me you will wish to bring the following in such manner as you think appropriate to the attention of Mr. McDonald who is now somewhere in Europe, I believe.

As you know, Mr. McDonald talked over the question of a financial contribution from this Government with the President on a recent trip to Washington. Through the fault of no one, I am sure, and perhaps due to the shortness of the discussion, the President gained the impression that the High Commission had already received financial contributions, or pledges, from all the interested governments and that the absence of a contribution from the United States was in effect a failure on the part of this Government, as a member of the Governing Body, to bear its fair share of the expenses which the High Commission is incurring in its excellent work. Because of his understanding the President was naturally inclined to see what could be done to remedy what appeared to be almost a neglect on the part of the American Government.

It of course fell to the State Department to prepare the way for an appropriation to this end. In connection with this ground work we had occasion to obtain from Mr. McDonald by letter certain details regarding the finances of the High Commission and information regarding contributions from other governments. In leisurely going over the admirably clear statement of the situation which Mr. McDonald was kind enough to give us by mail, it became apparent to the President that his first impression did not correspond with the detailed facts. He has consequently reached the conclusion that since it is not fundamentally a question of our assuming our fair burden along with all of the other governments the justification for seeking an appropriation from Congress does not as yet exist.

It is my thought that you will probably wish to bring the above to the attention of Mr. McDonald at the earliest possible moment so that he may avoid the embarrassment of taking any action upon the expectancy of the Executive asking Congress for a government contribution unless the other governments take similar action.

Sincerely yours,

William Phillips