462.00R296/5911: Telegram
The Secretary of State to the Ambassador in Germany (Dodd)
31. Please call at the Foreign Office and make oral statement and leave Aide Mémoire on following lines:
The Government of the United States has seen with regret the announcement that the coupons of the Dawes Loan83 which fell due for payment on April 15 and which do not fall under the provisions of special agreements or clearing arrangements whereby the holders may receive full payment in their respective currencies, will be served only by an offer of payment in registered marks. In effect, this means that holders other than American holders will receive full payment and that American holders will be tendered payment in reichsmarks utilizable only for restricted purposes and convertible into dollars only at a considerable discount from the face value of the coupon. The amount necessary to assure full service of this direct obligation of the German Government bearing specific guarantees of priority of transfer into foreign currencies and of non-discriminatory treatment is slightly in excess of $2,000,000. The Loan was floated under unusual auspices of international cooperation and the American subscriptions were an essential contribution to the re-establishment of German currency and finances in 1924. The solemn faith and credit of Germany were voluntarily pledged by the German Government that payments on the bonds would be met and met without discrimination for or against any holder.
- For the Dawes Plan, see British Cmd. 2105 (1924): Reports of the Expert Committees Appointed by the Reparation Commission.↩