Paris Peace Conf. 871.51/14a: Telegram
The Commission to Negotiate Peace to the Acting Secretary of State
397. D–9 for Rathbone [from Davis].
1. Before receiving your 701,85 I addressed a letter to the President, in accordance with your 688,86 requesting his consent for the use of [Page 724] credits in favor of Roumania, and have received a letter from him addressed to the Secretary of the Treasury, which is being forwarded, reading as follows.
“Mr. Norman H. Davis has brought to my attention a cablegram of January 7, from the Treasury Department, containing the views of the Department concerning the establishment of a credit of Five Million Dollars in favor of Roumania and the advance of funds thereunder against Roumanian obligations, to pay for foodstuffs bought in the United States.
The situation now existing in that country, critical for Roumania herself, and attended with the possibility of consequences less purely local, persuades me, as a matter of national policy, and in the interest of national defense, to lend my strong approval to the establishment of the proposed credit, even though there may be some uncertainty regarding the legal authority of the present Roumanian Government to negotiate foreign loans or to delegate authority to its representatives in the United States.
My approval is, of course, conditioned upon the fulfillment of such other requisites as you may deem necessary or advisable. I am, my dear Mr. Secretary, Cordially yours, Signed Woodrow Wilson.”
2. While the President’s letter refers to the establishment of a credit rather than advancing funds under credits previously established, I assume from your 701 that this letter is in fact not needed.
3. I am informed that the Prime Minister of Roumania has delivered to Secretary Lansing a document authorizing the Roumanian Charge d’Affaires in Washington to execute obligations and receive funds, and that Secretary Lansing is cabling his approval of same to the State Department for their action.87 Please advise when funds are made available. Davis.