Any indication on your part of views of Debt Commission besides those set forth in Secretary Mellon's statement to Jusserand of December 1 might, at present stage, lead French officials to endeavor to draw you into discussion of particular terms. It is our desire to elicit from French Government an official proposal to Debt Commission on basis of Secretary Mellon's statement (copy of which you handed to M. Franklin-Bouillon) in which sole area for discussion is adjustment of interest payments to economic necessities of France. A proposition of this nature might be presented to Secretary Mellon by Ambassador Daeschner and in this way serve as basis for further discussion with Debt Commission. KELLOGG 800.51 W 89France/121 : Telegram The Ambassador in France (Herrick) to the Secretary of State [Paraphrase] PARIS, May 16, 1925—1 p. m. 282. Department's 190, May 8, 4 p. m. With reference to your paragraph 3 I do not think Franklin-Bouillon desired United States to commit itself to basis upon which France and Great Britain might agree. His principle is that as French debts to Great Britain and to the United States are approximately equal it is impossible for France to discriminate in favor of one against the other. Practical result is that French Treasury must be prepared to pay double what may be agreed upon with the United States, and that this fact has naturally to be considered in estimating amount France could pay us. Your paragraph 4. I have never failed to be aware that negotiation of terms is wholly matter for Debt Commission and I think the French understand that perfectly. During a conversation with Franklin-Bouillon this morning I put forward your suggestion in regard to Ambassador Daeschner and Secretary Mellon. Caillaux and Minister for Foreign Affairs Briand have been officially appointed to study question of the interallied debts, and I have slight doubt that an official proposal will be forthcoming in comparatively near future. Repeated to American Embassy, London. HERRICK 800.51 W 89France/121a: Telegram The Secretary of State to the Ambassador in France (Herrick) [Paraphrase] WASHINGTON, May 18, 1925-7 p. m. 203. Inquiries from newspaper correspondents made necessary a statement Saturday by the Department regarding debt-funding negotiations, and for information of the correspondents, but not for quotation, the Secretary said: "The correspondents are aware that debt-funding arrangements have been completed with Great Britain, Finland, Hungary, Lithuania, and Poland by the World War Foreign Debt Commission.37 Among the countries with which debt-funding arrangements have not been completed are Belgium, Czechoslovakia, France, Italy, and Rumania. In pursuance of authority given by Congress, it is function of the Debt Commission to keep subject before these Governments with whom arrangements have to be made, and the duties of the Secretary of State are to carry out, in communication with foreign Governments or with our Ambassadors and Ministers, the orders of the Debt Commission. The correspondents will readily understand that the Secretary of State cannot publish the various communications to our Ambassadors and Ministers or conversations between them and the representatives of foreign governments. The Secretary could only say that these matters had been brought to the attention of these governments, and that he is very hopeful that they are taking steps to open subject of settlement of the debt with the World War Foreign Debt Commission. We earnestly desire and hope that negotiations will be entered upon promptly and brought to satisfactory conclusion at earliest moment possible. "France is only one of countries which have been urged to reach settlement with the Debt Commission, and it would be a matter of great satisfaction, of course, if French Government should take steps promptly to send a commission to negotiate and conclude with our World War Foreign Debt Commission, a suitable arrangement for payment or funding of debt of France to the United States, and that he had received impression from press reports that the French Government has in mind such action in near future." The foregoing statement is the sole basis for newspaper stories about a circular note to debtor governments. Department has not sent any such note and none is thought of. At press conference of May 18 one correspondent inquired if there was any authority for reports that nine countries had been approached. Secretary said he did not make that statement and that he could not say nine countries had been approached. Another ST See Combined Annual Reports of the World War Foreign Debt Commission, pp. 106, 120, 132, 144, and 156. 89 See pp. 107 ff. and 122 ff. See pp. 162 ff. and 165 ff. correspondent said that a newspaper article had indicated that there had been a circular note. Secretary replied that there had not been any, and that whatever had been done through conversations with Ministers and Ambassadors had been done separately, not all at same time. Repeat the foregoing to American Embassies Belgium and Italy, and Legations Czechoslovakia, Greece, Latvia, Rumania, and Yugoslavia. KELLOGG 800.51 W 89France/132: Telegram The Ambassador in France (Herrick) to the Secretary of State [Paraphrase] PARIS, June 18, 1925-6 p. m. 336. At lunch day before yesterday with Briand, Caillaux, and others at home of M. Bunau Varilla, owner of Le Matin, the French debt to the United States was discussed at length. Briand stated that he would: (1) Admit publicly indebtedness of France to the United States at public luncheon on July 3; (2) in no way link France's payments to the United States with receipts from Germany on account of reparation payments; (3) open correspondence with the Government of the United States through Ambassador Daeschner admitting indebtedness of France and asking for information on principal of the debt, its maturity, interest to be charged, and length of moratorium to be granted; (4) send small official commission to the United States armed with sufficient authority to confer with World War Foreign Debt Commission and to conclude negotiations at such time as progress of preliminary negotiations shows conclusively that visit of commission would be successful. At a luncheon at Bunau Varilla's on June 9, at which Caillaux and Painlevé were present, the debt question was discussed, and opinions voiced at that time by Painlevé coincide with Briand's intentions described above. Caillaux requested Bunau Varilla to intimate to me that he felt no great security in tenure of his present office, but that he thought plans outlined above would be carried out whether he fell or not. Repeated by mail to American Embassy, London. HERRICK 800.51 W 89France/132: Telegram The Secretary of State to the Ambassador in France (Herrick) [Paraphrase] WASHINGTON, June 23, 1925-6 p. m. 235. Your 336, June 18, 6 p. m. Reference your first paragraph. I would be glad if you can find it possible to suggest that in speech on July 3 intention be publicly announced of sending commission to Washington to enter upon debt-funding negotiations, and that an early date be set for commission's departure. KELLOGG 800.51 W 89France/137: Telegram The Ambassador in France (Herrick) to the Secretary of State [Paraphrase] PARIS, July 3, 1925—3 p. m. 362. Your telegram No. 235, June 23, 6 p. m. At luncheon given today at Foreign Office to American delegation to Exposition of Decorative Arts, Briand said in speech that propaganda carried on in the United States to show that France was imperialistic had been silenced by attitude of French Government, that new propaganda that France was trying to avoid paying her debts would be silenced in same way, and that the French Government had decided "to send in the very near future a commission to the United States to settle the debt, naturally, in such a manner as the state of the French finances permits".40 I feel that in view of present conditions here this statement was as categorical announcement as could well be expected; hope it is satisfactory to you. HERRICK 800.51 W 89France/180 The French Ambassador (Daeschner) to the Secretary of State [Translation "] WASHINGTON, September 16, 1925. MR. SECRETARY OF STATE: I have the honor to inform Your Excellency that the mission charged with the duty of assisting Mr. Joseph Caillaux, Minister of Finance, in his forthcoming negotia "Quoted passage not paraphrased. 41 File translation revised. tions with the Secretary of the Treasury in Washington for the settlement of the debt of France to the United States, will consist of: Mr. Henry Bérenger, Senator, General Reporter of the Finance Committee of the Senate; Mr. Louis Dausset, Senator, Reporter of the Budget of Finances in the Senate; Mr. Fernand Chapsal, Senator, formerly Director of the Ministry of Commerce; Mr. Paul Dupuy, Senator; Mr. Vincent Auriol, Deputy, formerly Chairman of the Finance Committee of the Chamber of Deputies; Mr. Lucien Lamoureux, Deputy, Assistant General Reporter of the Finance Committee of the Chamber of Deputies; Mr. Maurice Bokanowski, Deputy, Member of the Finance Committee of the Chamber of Deputies; Mr. de Chambrun, Deputy; Mr. Joseph Simon, formerly Inspector General of Finance, Vice President of the Société Générale; Mr. Moreau-Néret, Assistant Director of the General Movement of Funds and Minister of Finance; Mr. Haguenin, Inspector of Finances. The Ambassador of France at Washington and Mr. Lacour-Gayet, Inspector of Finances, Financial Attaché of the Embassy of the Republic at Washington, will also form part of that mission. The mission embarked at Havre on the 16th of this month on the ship Paris, which, barring accident, should arrive in New York on the evening of the 22d.42 Be pleased to accept [etc.] E. DAESCHNER Greece 868.51 War Credits/389c The Secretary of State to the Chargé in Greece (Goold) No. 237 WASHINGTON, July 31, 1925. SIR: With reference to your telegram No. 116 of December 15, 1924, and other communications regarding the indebtedness of Greece to the United States, you are instructed to present the following note to the appropriate Greek authorities: "Under instructions from my Government, I have the honor to refer to the agreement dated February 10, 1918, between representatives of the Governments of Greece, Great Britain, France and the United "For the negotiations between the Caillaux mission and the World War Foreign Debt Commission, see Combined Annual Reports of the World War Foreign Debt Commission, p. 44. 43 Foreign Relations, 1924, vol. 1, p. 141. |