by the Government of the United States to Belgium and it is stated that the conversations which are about to commence should take into account the position set forth in paragraph one of the communication under acknowledgment concerning this matter. It is further noted that, although the Belgian Government does not consider that it can legally make a point of Article 232 vis-a-vis the United States, the contention is advanced that Belgium has 'a right which continues to exist whatever may have been the fate of Article 232.' "As stated in paragraph (a) of the memorandum of May 31, the Government of the United States continues to look solely to Belgium for payment of this indebtedness, and cannot consent that Germany be substituted directly or indirectly for Belgium in respect of the pre-armistice debt. The Government of the United States is in doubt whether the Belgian Government unconditionally accepts the proposition contained in paragraph (a) of the memorandum of May 31, and does not find in the communication of the Belgian Government a pledge that the Government of Belgium will negotiate on the basis set forth in that memorandum. The Government of the United States desires more express assurance on this point. "The Government of the United States has also noted that the Belgian Government engages itself to send to Washington at a time to be fixed by agreement a mission charged to negotiate a settlement of the indebtedness of Belgium, and understands that this mission could go forward in July. The Government of the United States would be glad if negotiations could commence at Washington at a date in July that may be convenient to the Belgian Government." (3) If you think preferable and can obtain satisfactory communication in place of that quoted in your telegram No. 65, you may proceed on that line. It is essential, however, to receive unequivocal statement from Government of Belgium (eliminating conditions stated in its note as quoted in your telegram) that it accepts and will negotiate on basis of principles set forth in memorandum of May 31 (the capital and interest of the debt to be subject to verification) and that the Belgian mission will commence negotiations in Washington next month. Department will await your reply before taking any action on loan sought by Belgium from J. P. Morgan and Company. KELLOGG 800.51 W 89Belgium/43: Telegram The Ambassador in Belgium (Phillips) to the Secretary of State [Paraphrase] BRUSSELS, June 5, 1925-10 p. m. 70. Department's No. 35, June 4 [3], 7 p. m. At two long conferences today, one in the morning, the other in the afternoon, I presented your position strongly to the ad interim Ministers of For 75289-40-vol. 1-16 eign Affairs and Finance. At last the Ministers decided to send you a clear and explicit statement of unconditional acceptance of paragraph (a) and expression of their willingness to negotiate on basis of the three paragraphs of May 31 memorandum. In view of existing public opinion that in some way Belgium has been relieved of her war debt, the acting Minister of Finance (Mr. Van de Vyvere) does not feel that he is in a position to close door in forthcoming negotiations to presentations of circumstances surrounding Belgium's case. For this reason their Belgian memorandum is in nature of an explanation of statements in earlier communication and I think may be accepted as recession from former position. Memorandum seeks to make clear that although in Belgium's opinion the circumstances surrounding negotiations in 1919 are deserving of consideration in forthcoming negotiations, Belgium does not assert that they constitute a right or a legal claim. As the Ministers preferred to have their reply of June 2 remain, I handed them the memorandum contained in your No. 35, giving it date of June 4; I have received in reply following memorandum dated June 5, which I hope will be satisfactory to you. Please telegraph me your decision. 5 The Belgian Government wishes to dissipate doubt as to its unconditional acceptance of the proposal contained in paragraph (a) of the memorandum of the 31st of May. Its object in presenting the arguments as contained in paragraph 1 of the note of June 2 is not with a view to maintain the substitution of Germany for Belgium as debtor nor to contest that Belgium alone is accountable to the United States for the payment of its debt. The statements were made for the purpose of assuring to the negotiators the opportunity of bringing out all the circumstances in their case. Belgium believes that these circumstances are worthy of consideration but does not pretend that this constitute [s] a right or a legal claim. Belgium therefore means to give an express assurance that it will negotiate on the bases of paragraphs (a), (b) and (c) proposed in the memorandum of May 31st. The Belgian Government undertakes to recommend for the approval of the legislative power the arrangements which it hopes sincerely will result from these negotiations. 800.51 W 89 Belgium/43: Telegram PHILLIPS The Secretary of State to the Ambassador in Belgium (Phillips) [Paraphrase] WASHINGTON, June 6, 1925-11 a.m. 39. Your No. 70, June 5, 10 p.m. The Belgian reply is satisfactory except that it does not cover sending of a mission (see last par agraph memorandum Department's No. 35, June 3, 7 p.m.). If the Belgian Government gives you written assurance that it will send a mission in July to negotiate a settlement, you may state that the Government of the United States considers Belgium's assurances satisfactory. Immediate answer is desired so that we can notify Morgan and Company on Monday. KELLOGG 800.51 W 89Belgium/44: Telegram The Ambassador in Belgium (Phillips) to the Secretary of State BRUSSELS, June 7, 1925-3 p.m. [Received June 8-9:45 a.m.] 72. Your 39, June 6, 11 a.m. As the Belgian Government had already expressed their intention to send the mission to Washington in July they were entirely ready to give the necessary assurance in writing. Theunis being still absent in Italy the actual date in July of his departure for the United States is not definitely settled. However it is certain that the negotiations can begin next month. The written statement received and dated today is as follows: "The Government of the King has taken note of the desire expressed by the Government of the United States in its note of June 4 last with a view to opening the negotiations in Washington in July next at a date which would be agreeable to the Belgian Government. The Government of the King is in accord as to the commencing of the negotiations next month and it will come to an understanding shortly as to the date upon which it will be convenient for the Belgian commission to go to Washington." I have informed the Foreign Office that the Government of the United States considers Belgian assurance as satisfactory. PHILLIPS 800.51 W 89Belgium/44: Telegram The Acting Secretary of State to the Ambassador in Belgium (Phillips) [Paraphrase] WASHINGTON, June 7, 1925-6 p.m. 40. Your 72, June 7, 3 p.m. Department has just given to the press information that Belgian Government will send mission in July to take up debt negotiations." We have also informed Morgan that Department has no objection to the $50,000,000 loan. GREW 800.51 W 89Czechoslovakia/86a Czechoslovakia The Secretary of State to the Minister in Czechoslovakia (Einstein) No. 252 WASHINGTON, April 4, 1925. SIR: With reference to previous correspondence regarding the indebtedness of Czechoslovakia to the United States, the Department transmits herewith the text of a note to the Czechoslovak Government which you are instructed to present at the first available opportunity. Please inform the Department by telegraph of the date of the note which you present pursuant to this instruction. I am [etc.] FRANK B. KELLOGG [Enclosure] Text of Note To Be Presented to the Czechoslovak Government Under instructions from my Government, I have the honor to refer to certain correspondence exchanged in 1919 between a representative of the Government of Czechoslovakia and a representative of the Treasury Department of the United States regarding the conditions under which the Government of the United States was prepared to make further advances to the Government of Czechoslovakia, that is to say, to a letter dated May 19, 1919, from Mr. Norman H. Davis, Finance Commissioner of the United States, to Mr. Edouard Beneš, Minister of Foreign Affairs of Czechoslovakia, and to the reply from Mr. Beneš dated June 26, 1919. The letter from Mr. Davis, dated May 19, 1919, was as follows: "The Government of the United States of America has made advances to the Government of your country for relief and reconstruction purposes, and the question of further advances is under consideration. "The Secretary of the Treasury desires me to express to you his opinion that, in view of the circumstances under which, and the purposes for which, these advances are made, it is proper that your Government should agree not to take any action by way of legislation, concessions, or agreements which might put any of the Allied or As "The Belgian commission sailed from Cherbourg, France, on July 30. For the opening of negotiations, text of the agreement signed August 18, and other relevant material, see Combined Annual Reports of the World War Foreign Debt Commission, pp. 166-182. sociated Powers or their nationals in a more favorable position than the United States government or its nationals, or which will discriminate against the nationals of the United States. "I shall be glad to hear from you, so that I may communicate your reply to the Secretary of the Treasury." The reply from Mr. Beneš, dated June 26, 1919, was as follows: "I beg you to excuse my involuntary delay in replying to you. I sent your letter to Prague, for the information of my colleagues of the Cabinet, especially the Minister of Commerce, and received no immediate reply. "For my part, I can assure you that our Government wholly shares your point of view on the question of which you spoke in your letter of May 19, 1919. The Czechoslovak Government recognizes with the utmost satisfaction the great services, both financial and economic, rendered it by the Government of the United States. It has no intention whatever of favoring one of our Allies to the detriment of another or of taking measures vis-à-vis one which could be unfavorable to another. It intends to continue the same policy-in the field of economics and finance that it practiced during the war, namely, of having the same general attitude toward all our allies. "Please accept, Sir, the expression of my highest sentiments." In view of the understanding set forth in the above correspondence regarding the treatment to be accorded to the advances made by the Government of the United States to the Government of Czechoslovakia, it is with no little surprise that the Government of the United States has learned that the Government of Czechoslovakia, although it has made no corresponding proposal to the Government of the United States, has agreed to repay to the Governments of Denmark, France, Great Britain, Holland, Norway, Sweden and Switzerland within five years, with interest at five per cent., the relief indebtedness of Czechoslovakia to those Governments. My Government is also informed that the Government of Czechoslovakia has agreed to pay separately to each of the above-mentioned Governments the amount of interest, if any, calculated at the rate of six per cent. per annum and accumulated semi-annually, which on January 1, 1925, was due and unpaid, and to constitute the payments to be made pursuant to these arrangements a first charge on receipts accruing to the Government of Czechoslovakia by way of compensation, reparation or indemnity from ex-enemy Governments, other than receipts by way of restitution in kind, and subject to any charges already created in respect of previous loans. The Government of the United States has accorded the most considerate treatment to the Government of Czechoslovakia in connection with the indebtedness of the latter to the United States. 'A translation has been substituted by the editor for the French text which here followed. |