The Acting Secretary of State to the Legation in Rumania
623. Urdesp 1730 Sep 3, 19471 and related despatches. Dept desires to press with all available diplomatic and legal means complete restoration and continued maintenance in maximum possible force this and other interests constituting US economic outposts in Rumania. In principle Dept therefore will not entertain any thought of compensation in lieu of specific performance, or await fruition damage claims, until all other channels are foreclosed. With view deriving full benefit treaty provisions and early recourse forums provided in treaty, Dept is prepared assert that any action effected, instigated, condoned or tolerated by responsible Rumanian Govt officials constituting substantial diminution full rights, interests and property enjoyed by companies Sep 1, 1939 tantamount in present circumstances to failure observe treaty obligations in good faith as well as otherwise indefensible. Apart from general international violation Dept’s view is such action constitutes immediate treaty violation, particularly Art 24. Furthermore, to extent same or any similar action has purpose or effect of placing American interests at disadvantage relative to Soviet or other comparable interests it is discrimination in sense Art 31. Dept’s interpretation treaty is that restoration of American legal rights, interests and property implies obligation do so in good faith and not merely formally or illusorily or with calculation or intent to evade, destroy, impair or render nugatory by devices or stratagems. In this connection six month period provided in Art 24, Par 2, if otherwise relevant is inapplicable arid treaty violation deemed immediate where clear that compliance at end six months already rendered impossible or frustrated by action of foregoing character and clear that intention exists not to comply in good faith.
Action under Art 32 preferable to Art 38 this and similar cases since latter provides additional opportunity delay in requirement presentation to three heads of mission, but steps under Art 38 should also be taken concurrently in due course where indicated.
Where at all feasible, you should currently collect evidence usable in negotiations Rumanian Govt or subsequent international tribunal showing governmental intention since Armistice to evade obligation to restore American rights, interests and property, in good faith or to discriminate against them (such as admission responsible Govt official that Govt is behind communist trade union attacks on American Company [Page 495] personnel, etc.). Such evidence needed to strengthen allegation treaty violation as distinct from violations general international law outside scope treaty and therefore not cognizable by tribunals provided by treaty. Keep Dept informed such information.
Pending further instructions you are authorized assert Rumanian authorities Dept’s view regarding treaty violation in premises on appropriate occasions.
Officials Romano-Americana here now preparing full documented statement of facts regarding rights Sep 1, 1939, and current frustration thereof as well as discrimination. When case completed Dept desires expeditious presentation along foregoing lines to Rumanian Govt and if rejected or not acted upon favorably in minimum reasonable period, then presentation as dispute under Treaty Art 32 with view press Rumanian Govt appoint conciliation commissioner.2