Mr. Mellon. I reminded the Ambassador of the fact that in 1922 the Italian Government had informed the American Ambassador that it was prepared to send a representative to the United States to negotiate with the Debt Commission,50 and that I thought that the Italian Government should make this pronouncement effective and take up the matter of settlement of the debts without delay. KELLOGG 800.51 W 89Italy/49: Telegram The Ambassador in Italy (Fletcher) to the Secretary of State [Paraphrase] ROME, September 2, 1925—3 p. m. 134. Italian Foreign Office has announced composition of delegation who will go to Washington in October to discuss debt settlement. It will be composed of Count Giuseppe Volpi di Misurata, Minister of Finance, who will be chairman of the delegation; Dino Grandi, Undersecretary of State for Foreign Affairs; Ambassador de Martino; Count Lelio Bonin Longare, formerly Ambassador to France; the Honorable Alberto Pirelli; and the Honorable Mario Alberti.51 The opinion continues to be maintained by the entire press that Italy is not able to pay anything like sums expected from her, and will not undertake to do so; that not only must principal be reduced but interest rate as well; and that rather than assume burden which they cannot carry, they will not make any settlement whatever. FLETCHER 800.51 W 89Latvia/44a Latvia The Secretary of State to the Minister in Estonia, Latvia, and Lithuania (Coleman) No. 273 WASHINGTON, July 20, 1925. SIR: With reference to previous correspondence regarding the indebtedness of Latvia to the United States, you are informed that in a note dated June 26, 1925,52 the Latvian Minister at Washington See telegram No. 126, July 27, 1922, 1 p.m., from the Ambassador in Italy, Foreign Relations, 1922, vol. I, p. 406. 61 For negotiations and text of agreement signed Nov. 14, 1925, see Combined Annual Reports of the World War Foreign Debt Commission, pp. 217-241. 52 62 Not printed. informed the Department of his instructions to negotiate the debt funding agreement and stated that he desired to enter into immediate discussions with the World War Foreign Debt Commission. This information was communicated to the Secretary of the Treasury and on July 8, 1925, Mr. Seya was introduced to Mr. Winston, the Acting Secretary of the Treasury and the Secretary of the World War Foreign Debt Commission, with a view to the inauguration of the negotiations in question.53 I am [etc.] For the Secretary of State: Rumania 800.51 W 89Rumania/47: Telegram The Secretary of State to the Minister in Rumania (Jay) WASHINGTON, February 16, 1925—3 p. m. 6. London Embassy reports acceptance on January 19 by Australia, Denmark, France, Great Britain, Norway, Sweden and Switzerland of Rumanian proposal of December 24 to refund her relief debt to them on a basis providing for the repayment of such debt in 30 years, interest during that period running at 5 per cent. The Department is advising Treasury of the foregoing with a view to the consideration of the question by the World War Foreign Debt Commission and will send you further instructions. In the meantime Department desires your comments by telegraph particularly with reference to the question whether in your opinion there is any reason why this Government should not call upon the Rumanian Government to take prompt measures looking to a similar settlement of the Rumanian debt to the United States. HUGHES 800.51 W 89Rumania/48: Telegram The Minister in Rumania (Jay) to the Secretary of State [Paraphrase] BUCHAREST, February 18, 1925—6 p. m. [Received 10:08 p. m.] 10. Department's No. 6, February 16, 3 p. m. Legations here except British do not appear to take much interest in question, as it was British Government which not only took the initiative but conducted "For negotiations and text of agreement signed Sept. 24, 1925, see Combined Annual Reports of the World War Foreign Debt Commission, pp. 182–193. the negotiations presumably because their claims come to more than $11,000,000, as against a total of about $190,000 for all other countries. Local press has published nothing on subject, and I have received impression confirmed by commercial attaché's unsuccessful efforts to obtain information that British Legation is not anxious to enlighten us on the matter, but tomorrow I expect to see British Minister personally. I have, however, seen copies of notes to the Rumanian Government on the subject. The Swiss Minister stated that his Government took comparatively little interest in matter from smallness of amount involved, and was unaware that definite settlement had been reached until I informed him. In an informal conversation this morning with Minister for Foreign Affairs he professed unfamiliarity with the question. I expressed very frankly my fear that unfortunate impression would be created in United States by this preferential treatment. He seemed to realize this fully and said he would have matter looked into and would give me full information in a very few days. As Finance Minister has undoubtedly handled whole matter I presume he must be consulted. I see no reason at present why the United States should not press vigorously for a settlement but I prefer postponing a definite expression of opinion until I shall have heard further from the Minister for Foreign Affairs. JAY 800.51 W 89Rumania/48: Telegram The Secretary of State to the Minister in Rumania (Jay) [Paraphrase] WASHINGTON, February 20, 1925—3 p. m. 7. Your No. 10, February 18, 6 p. m. The Department is fully informed in regard to funding agreements of Rumania with the Governments named in paragraph 1, Department's No. 6, and does not wish you to seek information nor to make representations in regard to it at this time. . . . Department would prefer to have Rumanian Government take the initiative in refunding matter; but in the absence of any indication that such step will be taken, the Department would seriously consider taking vigorous action. HUGHES 800.51 W S9Rumania/49: Telegram The Minister in Rumania (Jay) to the Secretary of State [Paraphrase] BUCHAREST, February 22, 1925—4 p. m. [Received 7:40 p. m.] 12. Referring to second paragraph of my No. 10, February 18, 6 p. m. I have not received information promised by Foreign Minister Duca, and shall not press for it. It is my opinion that the Minister of Finance intends to wait until Mr. Kellogg assumes office,54 in belief, apparently based on conversations with Mr. Kellogg in Paris,55 that Department will be more amenable. Minister Duca does not share Finance Minister's optimism but he is powerless. There were statements in the local press yesterday that Duca had offered his resignation because of difficulties arising in foreign affairs through Ministry of Finance, but today matter is reported to have been smoothed out by Prime Minister. I understand that Rumanian Minister to the United States deferred his sailing so as to return same ship with Mr. Kellogg. Situation set forth above will probably hamper my efforts to bring about refunding. So far I have elicited only vague promises and I cannot see that negotiations on any pending question would be imperiled by taking most energetic action, but before Department actually takes forceful steps I wish to inquire if it would be disposed to allow me to forewarn Minister Duca in informal and friendly way that such action by it is now definitely imminent. JAY 800.51 W 89Rumania/52: Telegram The Secretary of State to the Minister in Rumania (Jay) WASHINGTON, March 17, 1925-7 p. m. 13. Please present textually the following note: "In my note of October 21, 1924,56 I had the honor to state that I had been instructed by my Government to refer to the assurances given by Mr. Bratiano on behalf of the Rumanian Government in his letter of May 17, 1919,57 to a representative of the United States Treas "Mr. Kellogg succeeded Mr. Hughes as Secretary of State on March 5. At Finance Ministers Conference; see vol. II, pp. 133 ff. "See Department's telegram No. 44, Oct. 15, 1924, 6 p. m., Foreign Relations, 1924, vol. II, p. 634. "Not printed; see Roumanie, Ministère des Finances, Annexes: Documents Concernant la Question des Réparations et des Dettes Interalliées de la Roumanie (Bucarest, Imprimerie de l'Etat, 1925), annexe 20, p. 68. 75289-40- -19 ury, and to point out that in the light of these assurances, the Government of the United States was at a loss to understand the reports which it had received regarding the payment by Rumania of substantial sums to other governments on account of relief or reconstruction loans similar to those extended to Rumania by the United States, no corresponding payments having been made to the United States. I have now been instructed to communicate to you the surprise and regret of my government that the Government of Rumania has not seen fit to furnish an adequate explanation of this apparent discrimination, although nearly five months have elapsed since the matter was officially brought to its attention. In the meantime, moreover, it appears that the Government of Rumania had made a proposal, dated December 24, 1924, to the Governments of Australia, Denmark, France, Great Britain, Norway, Sweden and Switzerland for the repayment within twenty years with interest at 5 percent of the relief indebtedness of Rumania to those Governments. According to the terms of this proposal, which, my Government is informed,58 was accepted on January 19, 1925, by the several creditor governments named above, the principal and interest of the bonds to be issued by the Government of Rumania in exchange for the relief bonds heretofore held by the creditor governments in question are a charge upon all the assets and revenues of Rumania, and Rumania undertakes not only that the necessary sums will be included in the annual budget law for each year but also that the payment of the bonds shall be a first charge on receipts accruing to Rumania by way of compensation, reparation or indemnity, other than receipts by way of restitution in kind, from ex-enemy governments or any of them, subject to any charges already created in respect of previous loans. As of November 15, 1924, the principal amount of the indebtedness of the Government of Rumania to the Government of the United States was $36,128,494.94. Unpaid interest on that date aggregated $9,476,953.85, making the total indebtedness of Rumania to the United States on November 15, 1924, $45,605,448.79. The obligations of the Government of Rumania which are held by the Treasury of the United States are all overdue or payable on demand. I am instructed to state that the Government of the United States cannot agree that Rumania should make no payments to the United States on account of this indebtedness while making payments to other governments on account of indebtedness to them incurred by Rumania for similar purposes. Consequently, it will not acquiesce in any discrimination against the United States in favor of other creditor governments either through agreements such as those recently concluded or otherwise. My Government, therefore, expects promptly to receive from the Government of Rumania an appropriate proposal for the refunding of its indebtedness to the United States." Please reinforce note with vigorous oral representations. Mail text of note to Amlegation, Belgrade for latter's strictly confidential information. KELLOGG By despatch No. 1013, Jan. 21, 1925, from the Ambassador in Great Britain; not printed. |