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DEPARTMENT OF STATE,
Washington, March 10, 1930. The PRESIDENT:
I have the honor to bring to your attention the request made by the Norwegian Government for the payment of interest on certain sums advanced by it for this Government in connection with its representation of American interests in Moscow.
The facts of the case may be briefly stated as follows: In September, 1918, the Government of the United States requested the Norwegian Government to take charge of the protection of American interests in Moscow, stating that it would reimburse the Norwegian Government for the expenses incurred in carrying out this request.
The Norwegian Government accordingly authorized its vice consul at Moscow to assume protection of American interests at that place. Various expenses were incurred by the vice consul in connection with his protection of American interests, and the Norwegian Government, by December 8, 1920, had paid him the sum of 65,162.97 kroner, representing the amount of the expenses incurred by him. with interest to the date of payment. The Norwegian Government thereupon requested reimbursement by this Government of the sum of 65,162.97 kroner with interest to the date of such reimbursement.
Due, in part, to the difficulty experienced by this Government in obtaining proper documentary evidence of the expenditures incurred by the vice consul, reimbursement was not made until July 13, 1925, when the Comptroller General of the United States allowed the Norwegian Government the sum of 65,162.97 kroner, the amount paid by it to the vice consul, but disallowed the claim for nterest.
The Norwegian Government, in acknowledging the receipt of the sum allowed by the Comptroller General, requested that interest also be paid.
Because of the fact that reimbursement was not made until nearly five years after the funds had been advanced by the Norwegian Government it is the view of this department that this Government should pursue a generous course in recognizing the assistance rendered it by a friendly foreign g vernment in a time of emergency.
The interest claimed amounts to approximately $5,000, and I have the honor to recommend that the Congress be requested to authorize the approp:iation of this sum in payment of the Norwegian Government's claim, as an act of grace, and without reference to the quxstion of the legal liability of the United States.
A summary of the essential facts regarding the case being embodied in this communication it is deemed unnecessary to accompany it with copies of the correspondence in the case. All, or any part, of that correspondence will, of course, be furnished should you or the Congress so desire.
It should be added that this claim was brought to the attention of the Sixtyninth Congress in a message from the President dated April 23, 1926, printed in House_Document No. 343, Sixty-ninth Congress, first session, and that House Joint Resolution No. 246, Sixty-ninth Congress, for the payment of this claim wa in rodu red n May 25, 1926, and was referred to the Committee on Foreign Affairs. N action was taken by the committee on this resolution. House Joint Resolution No. 154, providing for the payment of this claim, was passed by the Hous on Ap il 4, 19 8, and was refurred on that date to the Committee on Foreign Relations of the Snate. However, it failed of passage in that body. The matter has again been brought to the attention of the department by the Norwegian minister at this Capital, who stated that he would be very much obliged to be able to inform his Government that the claim would again be taken up at the present session of Congress. Re pectfully submitted.
WILBUR J. CARR, Acting Secretary of State.
DEPARTMENT OF STATE,
Washington, April 28, 1930. Hon. STEPHEN G. PORTER, Chairman Committee on Foreign Affairs,
House of Representatives. MY DEAR MR. PORTER: When I appeared before the Committee on Foreign Affairs recently in connection with House Joint Resolution 271, authorizing payment of the claim of the Norwegian Government for interest upon money advanced by it in connection with the protection of American interests in Russia, the committee requested me to submit (1) a statement showing the method of computing the interest claimed by the Norwegian Government, (2) the amount of interest on unpaid interest which had accrued since the date of the payment of the principal to the Norwegian Government, and (3) an amendment to the resolution setting forth the essential facts concerning the payment of interest.
In regard to the first point, the rate of interest claimed is 672 per cent and not 6 per cent as stated in the pending resolution. The amount advanced by the Norwegian Government upon which interest is claimed was 65,162.97 kroner, which had a value of $11,507.78 in United States gold at the time of the payment by the United States of the principal on July 13, 1925. At the rate of 632 per cent the interest amounts of 22,460.37 kroner from February 24, 1920, to July 13, 1925, the date of the payment of the principal. This sum in United States currency at the rate of exchange prevailing July 13, 1925 (1 kroner equals 0.1766) was equal to $3,966.50, or, at the mint rate of exchange, which is only 0.0013 above the current rate as of to-day (1 kroner equals 0.268), would equal $6,019.37.
As to the second point, the interest upon the foregoing sum, 22,460.37 kroner (interest from July 13, 1925, to July 13, 1930), at 614 per cent is 7,299.75 kroner which, at the rate of exchange prevailing on July 13, 1925 (1 kroner equals 0.1766), is equal to $1,289.13, or, at the mint rate of exchange (1 kroner equals 0.268), would equal $1,956.33.
The total amount of interest, therefore, amounts to 29,760.12 kroner, which is equal to $5,255.63 is computed at the rate of exchange prevailing July 13, 1925, when the principal was paid to Norway, or $7,975.70 if computed at the mint : rate of exchange. In either case, therefore, the amount of $5,000 stated in the report of the department, contained in House Document No. 317, is incorrect, and should be $5,255.63 or $7,975.70, according to the rate of exchange employed. It would seem that inasmuch as the interest claimed is upon an amount in kroner and in order to purchase at present the number of kroner necessary to pay to the Norwegian Government in kroner the amount of the interest, the sum required would be $7,975.70. Therefore, the appropriation should apparently not be for $5,000, as erroneously stated in the report of the Department of State, but should be for the sum of $7,975.70, or, in order to allow for interest beyond July 13, 1930, if an appropriation should be delayed beyond that time, approximately $8,500.
As to the third point, I am inclosing a redraft of the joint resolution which I believe sets out the points which the committee desired to have covered.
I am also inclosing a statement showing in still further detail the manner in which the department has arrived at the figures hereinbefore stated. Hoping that the foregoing will satisfy the requirements of the committee, I am, Yours sincerely,
WILBUR J. Carr.
Norwegian claim for interest
Value on Norwegian date of set. kroner tlement of
Value at mint rate
Amount advanced by Norwegian Government on Feb. 24, 1920.
Total advanced by Norwegian Government...
8, 1920, 9 months 13 days, and on 65, 162.97 kroner from Dec. 8. 1920,
to July 13, 1925, date of settlement, 4 years 7 months 5 days Interest on interest from July 13, 1925, to July 13, 1930 (estimated date of settlement il legislation is passed) 5 years, at 614 per cent..
REPORT No. 1078
SECOND DEFICIENCY APPROPRIATION BILL, 1930
(JUNE 18 (calendar day, JUNE 23), 1930.-Ordered to be printed
Mr. Jones, from the Committee on Appropriations, submitted the
(To accompany H. R. 12902)
The Committee on Appropriations, to which was referred the bill (H. R. 12902) making appropriations to supply deficiencies in certain appropriations for the fiscal year ending June 30, 1930, and prior fiscal years, to provide supplemental appropriations for the fiscal years ending June 30, 1930, and June 30, 1931, and for other purposes, reports the same to the Senate with various amendments, and presents herewith information relative to the changes made. Amount of bill as passed House..
$68,185, 884. 05 Increase by Senate
1, 896, 948. 83 Amount of bill as reported to Senate... 70, 082, 832. 88 The changes in the amounts of the House bill recommended by the committee are as follows:
Index to Federal Statutes...
Investigation of enforcement of prohibition laws.--
150, 000. 00
General Accounting Office:
State of New York...--.
Department of Agriculture:
Bureau of Plant Industry, phony peach eradication.....
lection of moths.--
tory Bird Refuge.--
able agricultural commodities act.
50, 000. 00