A copy of the note quoted in that communication was later furnished him. Bibesco was clearly informed of the great weight which this Government attached to receiving early assurances from the Rumanian Government that appropriate action would be taken in meeting the views of this Government with regard to the funding of its indebtedness for advances made after the armistice for relief and reconstruction. Bibesco indicated that he had received word from his Government with regard to the proposed negotiations with the Standard Oil Company. In this connection Bibesco was informed that the attitude of this Government in asserting its clear rights could not be conditioned upon arrangements which might be reached with private American companies but that if these arrangements were of a character to facilitate action toward meeting its obligations to the United States, the Department would of course be glad to see a solution reached which would tend toward the settlement of outstanding questions both between the Rumanian Government and this Government and between the Rumanian Government and private American interests and nationals. GREW 800.51 W 89Rumania/76: Telegram The Secretary of State to the Chargé in Rumania (Riggs) WASHINGTON, July 18, 1925—2 p.m. 44. Bibesco informed Department July 15 that he was being called back to Bucharest for consultation and that he could inform Department that Rumanian Government was shortly to make proposals to this Government through you with respect to its indebtedness to the United States. Press July 17th states that problem of relief indebtedness will receive serious consideration at Bucharest before arrival of new American Minister." According to Associated Press despatch from Bucharest the Rumanian Government is preparing to send a commission of experts to the United States for preliminary discussion of arrangements for funding the war debt. KELLOGG "William S. Culbertson had been appointed Minister to Rumania on April 28, to succeed Peter A. Jay, who had been appointed Ambassador to Argentina on March 18. 800.51 W 89 Rumania/77: Telegram The Chargé in Rumania (Riggs) to the Secretary of State BUCHAREST, July 21, 1925-6 p.m. [Received July 22-11: 50 a.m.] 66. Department's 44, July 18, 2 p.m. Minister of Foreign Affairs summoned me today and dictated to me following statement: "In reply to the various notes addressed to us relative to our debts to the United States I desire to communicate to you with the request kindly to notify your Government that we have summoned our Minister Bibesco to furnish certain complementary information on this matter but I am now directed to inform you that the Roumanian Government has decided to send a commission to Washington to examine with the American Government the bases on which an arrangement might be reached regarding the debts of Roumania to the United States." To my questions Minister for Foreign Affairs replied commission probably exclusively technical experts and might possibly arrive at Washington beginning of September. Advised date not officially decided and subject to change as Minister of Finance leaving in a few days on vacation and may not return in time to make final arrangements. RIGGS 800.51 W 89Rumania/79: Telegram The Chargé in Rumania (Riggs) to the Secretary of State [Paraphrase] BUCHAREST, July 27, 1925-11 a.m. 67. Mr. Culbertson arrived July 25.70 He wishes the following communicated to the Department: Does the Department wish to press for definite proposal for funding of the Rumanian relief debt in accordance with telegraphic instructions No. 13, March 17, 7 p.m., and No. 22, April 9, 1 p.m., or is the oral communication made to Mr. Riggs by the Rumanian Government reported in Legation's telegram No. 66, July 21, 6 p.m., regarded as satisfactory reply and as transferring the negotiations to Washington on the same basis as the war debts of other nations? I should like to receive instructions whether I can render Department any service by remaining in Bucharest until the King returns or whether I should proceed to Geneva for conference with Minister of Finance Bratiano. The King is not expected to return for four or five weeks. 70 RIGGS Because of the King's absence, Mr. Culbertson was unable to present his letters of credence and Mr. Riggs continued to act as Chargé. 800.51 W 89Rumania/79: Telegram The Secretary of State to the Chargé in Rumania (Riggs) [Paraphrase] WASHINGTON, July 31, 1925-2 p. m. 45. Your 67, July 27, 11 a. m. For Culbertson. The Department does not regard the oral statement communicated to Mr. Riggs by Rumanian Minister for Foreign Affairs as satisfactory reply to its several communications to the Government of Rumania on the subject of that Government's indebtedness to the United States, and the Department would be glad to have you remain a few days in Bucharest if you think your influence informally exerted would be effective in eliciting more satisfactory statement from Government of Rumania. You will appreciate that Department desires to have written reply to its notes that gives definite information on date of departure of the debt mission and contains assurances that mission will have sufficient authority to negotiate and agree upon suitable arrangement of debt funding with the World War Foreign Debt Commission. Department feels no useful purpose would be served by sending mission composed exclusively of technical experts without authority to negotiate an agreement; this information may be informally communicated to Rumanian Government. Mr. Winston, Acting Secretary of the Treasury, informed Rumanian Chargé, in reply to latter's inquiry, that we would be prepared to receive the Rumanian debt mission in September, if it were duly empowered to act, and that burden of showing incapacity to pay in accordance with terms of British settlement is responsibility of the debtor. The showing should be such as will be persuasive upon American Congress, since any settlement must be approved by that body. KELLOGG 800.51 W 89Rumania/89: Telegram The Chargé in Rumania (Riggs) to the Secretary of State BUCHAREST, August 30, 1925-10 a. m. [Received August 30-9:40 a. m.] 72. Department's 50, August 22, 3 p. m." In the course of a conversation yesterday, Minister of Foreign Affairs, who leaves for Geneva September 1st, presented formal written note signed by himself of which following is close translation: "Following the declarations which I have already made to you, Roumanian Government has decided to send during the course of this autumn, a commission to the United States to examine with the " Not printed. American Government the bases on which an arrangement might be reached as regards the debts of Roumania to the United States. This commission will have the right to treat and eventually to sign an arrangement with the American Government.” 72 Minister of Foreign Affairs stated commission will probably reach Washington around October 1st and certainly by the 15th, but although pressed to do so declined to embody any date specification in note. King returns September 2d but Foreign Office states he will probably not be able to receive Culbertson until week later.73 RIGGS Yugoslavia 860h.51/354 The Minister in the Kingdom of the Serbs, Croats and Slovenes (Dodge) to the Secretary of State No. 1795 BELGRADE, February 12, 1923. SIR: In my Despatch No. 1588 of September 26th last," I had the honor to report upon certain credits contained in the Yugoslav Budget Law for the present fiscal year and particularly upon credits therein provided for the payment of one year's interest upon the advances of $25,000,000 and $15,000,000 respectively made by the Government of the United States to the Serbian Government. I observed that notwithstanding these credits, I had been unable to find any credit provided for the payment of interest on the $12,000,000 advance made by the Government of the United States to the Serbian Government and I stated that for my information as to the reason for this I had addressed an informal inquiry to the then Minister of Finance, Dr. Kumanudi. In Mr. Boal's Despatch No. 1351 of May 11th last," he reported that, in accordance with the Department's Circular telegram dated April 21, 12 noon," he had communicated to the Yugoslav Government the ratification of a Resolution adopted by the World War Foreign Debt Commission on April 18th last and had informed this Government that this Commission desired to receive any proposals or representations which the Yugoslav Government might wish to make for the settlement or refunding of its obligations under the For negotiations with the World War Foreign Debt Commission and text of agreement signed Dec. 4, 1925, see Combined Annual Reports of the World War Foreign Debt Commission, pp. 52 and 241-253. 73 Mr. Culbertson presented his credentials on September 12. "Not printed. "Not printed; Pierre de L. Boal was then Chargé at Belgrade. Foreign Relations, 1922, vol. I, p. 399. provisions of the Act of Congress approved February 9th 1922. Having received no reply to Mr. Boal's communication, I addressed on October 3rd last an informal letter to Mr. Gavrilovitch, Assistant Minister for Foreign Affairs, inviting his attention to this fact and requesting that a reply might be sent to me. 78 As I received no replies to either of my letters mentioned in the foregoing paragraphs, I invited Mr. Gavrilovitch's attention to them on several occasions and I was finally led to the opinion, corroborated by Mr. Gavrilovitch, that Dr. Kumanudi had no intention of replying to either of them. On the coming into office of the new Minister of Finance, Dr. Stojadinovitch, I invited his attention to my two letters in the course of a conversation and he requested me to send him copies of them, assuring me that they would have his immediate attention. Having done so I finally received on the 10th instant a letter dated the 7th instant, from Mr. Gavrilovitch in which he communicated to me the reply to both of my letters of the Minister of Finance. I enclose a copy and translation of this reply, which will be observed to state that no credit for the payment of interest on the $12,000,000 advance appears in the Budget Law because this advance was a war loan and it did not appear to be desirable that such loans should appear in the Budget as no definitive decision had yet been taken in regard to them and as interest on them was not effectually paid. The letter further states that interest credits on the $25,000,000 and $15,000,000 advances were entered in the Budget because these advances had been concluded after the Armistice but it expresses the opinion that these credits should also not have been entered as these two advances in reality belonged to the same category of war loans. The letter adds however that the foregoing is without prejudice to any decisions which may be taken with regard to the question of Inter-Allied war debts which must be treated and resolved separately. It will be observed that the letter then states that due note has been taken of my communication to the effect that the $12,000,000 advance bears interest. This is in reply to the Legation's Note to this effect written in accordance with the Department's Instruction No. 296 of March 30th last (File No. 860h.51-131) 78 and in view of Dr. Kumanudi's contrary opinion on this matter. Finally the letter refers to my request for a reply to Mr. Boal's Note communicating the Department's circular telegram of April 21, 12 noon, referred to in the second paragraph of this Despatch, and states that this matter will be studied at once by the Minister of Finance, of whose decision I will be informed. 78 Not printed. |