800.51W89 France/1073
Memorandum by the Chief of the Division of Western European Affairs (Dunn) for the Acting Secretary of State
The French Ambassador came in this morning to inform you with regard to a conversation which he had just had with the President at the Executive Office. The Ambassador asked the President whether he thought anything might be accomplished now with regard to a reconsideration of the arrangement for the payment of the French debt to the United States. The President told the Ambassador that the Vice President and his political advisers in the Senate and House were strongly opposed to having the matter come up in this session, as they did not think it was an opportune time for consideration being given to it in this session of Congress.
The President said that he recognized and agreed with this position and suggested that no steps be taken immediately on the subject. The President said that he felt, however, that it might be possible later on, in perhaps two or three months, for conversations to be undertaken in a more helpful atmosphere. The President said, however, that he felt that any discussion of the subject should be undertaken through diplomatic channels, and furthermore it was his opinion that it would not be advisable for the French Government to appoint an Ambassador to come over on a special mission for the purpose, as the public discussion in the press which would result would greatly hamper the smooth progress of the discussions.
The Ambassador mentioned the possibility of Monsieur Bonnet, former Minister of Finance of France, who has been spoken of as coming on a limited mission of six months for the purpose of arranging a new debt settlement,42 and the President said that while there appeared to be no objection to Bonnet personally, the fact that he did not speak English and the fact that he had been mentioned as coming here for the purpose of discussing the debt settlement would not be helpful in the circumstances.
The President also said that there was a certain feeling in this country that the French had in mind making an arrangement by which they would make very small payments to this country, and in exchange would place themselves in a position which would permit of their floating or obtaining large loans here. He said that there was a very strong feeling in the country that such an arrangement should not be permitted.
[Page 590]The President further said that he was extremely anxious to obtain discretionary authority in connection with the proposed legislation for the maintenance of a neutral attitude on the part of this country in the event of future war in Europe, and that he was desirous also of obtaining in connection therewith discretion as to the obtaining of loans or credits in this country by foreign governments in war times. He said that it would be best to permit the discussion on the neutrality question to run its course before the question of settlement of foreign debts were injected into the picture. The Ambassador said that the President at the end of his conversation again referred to his feeling that any conversations on the subject of debts should be undertaken through diplomatic channels, in order that they might be kept entirely confidential until they had progressed to a point where there might be some possibility of arriving at an agreement.
The Ambassador asked me particularly to express to you his thanks for having arranged the interview with the President at this time, as he considers it extremely important that his Government be informed now as to the President’s attitude toward this subject.
- Georges Bonnet became French Ambassador in the United States on January 16, 1937.↩