863.51 Relief Credits/391: Telegram
The Secretary of State to the Ambassador in Germany (Wilson)
69. J. P. Morgan and Company have informed the Department that a meeting of the Committee of Control of the Guarantor States to be held at Geneva on May 17, will discuss the Austrian loan situation. Morgan states that the ranking of loans on the pledged revenues of Austria is as follows (and this judgment seems to the Department correct):—
- First charge: Czechoslovakian conversion loan II of which the equivalent of less than $2,200,000 was outstanding on June 30, 1937; and the dollar tranche of the 1923 loan, so far as bonds of that loan have not been presented for redemption from funds in trustees’ hands, pending settlement of gold clause dispute.
- Second charge: 1930 loan.
- Third charge: relief bonds.
- Fourth charge: the guaranteed loan of 1933–1953, guaranteed loan of 1934–1959, pari passu.
Please point out to the German Government before Committee meeting of May 17 the prior standing of the unguaranteed loans and [Page 486] emphasize that this priority should be observed in payment, and without discrimination between the payments made to nationals of different countries. Please take the matter up in this sense to insure that German authorities understand the priority situation of loans not represented on Guarantor Committee.