741.8411/12–944: Telegram

The Minister in Ethiopia (Caldwell) to the Secretary of State

257. ReLegs 255, December 7. Unless some objection made by London, where draft resulting from negotiations has been referred, or difficulty arises regarding details of railway transfer, agreement should be signed next week. Ethiopians refused offer of development trust, even after suggestion of de la Warr that some Americans be included on control board, as they consider that amount is too small and since they surrender control of reserved areas and Ogaden for 2-year life of agreement without guarantee or compensation they should receive loan also without guarantee and without interest.

Ethiopians feel that they have been compelled through fear of hostile British action in absence of any agreement to yield to superior strength and give British practically all they wanted with too little [Page 82] benefit to Ethiopia, and negotiations have not decreased their suspicion and dislike or [of] British. Although no one has so stated, I suspect that Ethiopians feel some disappointment at response, so far as known to them, to inquiry of Emperor transmitted in my telegram 214, October 24, although I have been most careful to avoid giving any encouragement to expectation or hope of support which might not be forthcoming; Spencer has assured me he has followed same course, but he probably hoped for more support than was given, so far as is known here.