861.00/5229: Telegram

The Acting Secretary of State to the Commission to Negotiate Peace

3198. For Polk. Your 4253, September 17, 11 p.m. and Department’s 3189, September 20, 6 p.m. I have today obtained the approval of the President to allocation by the Treasury of funds up to $12,000,000 as loans to the Czecho-Slovak Republic to cover estimated cost of repatriating 50,000 Czechs from Siberia. Have asked Treasury whether funds are available.

The President has also approved the allocation by the U. S. Shipping Board of sufficient tonnage for this movement and believing that this repatriation should be handled by one competent head and owing to the great part being taken in this transaction by the United States Government, we are prepared to ask the War Department to detail Brigadier-General Frank L. Hines, Chief of War Department Transportation Service, with such assistants as he may require to handle this movement for the Czecho-Slovak Government.

If Council approves, please have proper Czecho-Slovak government authority given to Czecho-Slovak representative here to execute obligations for sums which the Treasury may allocate for this purpose. The loan to Czecho-Slovak Government would be deposited in New York bank and drawn subject to countersignature of authorized representative of the Department as done in regard to munitions and movement of Czech wounded from Siberia.

Suggest you insist on Great Britain and France agreeing to make loans to Czechs Government equal in each case to one-quarter of total cost which Czechs may use to reimburse us. This participation seems proper, first, because total tonnage will be furnished by United States Shipping Board; second, major part played by United States in the general relief work in Europe; third, immediate interest of France and Great Britain to stabilize conditions in Czechoslovakia. Also suggest you ascertain first, best Mediterranean port to which these Czechs may be sent; second, whether Czecho-Slovak Government is prepared to handle men from port of debarkation to their homes or concentration camp.

We are withholding further communication with the Secretary of the Treasury, Chairman of the U. S. Shipping Board and Secretary of War pending your reply to this telegram which should convey approval or disapproval of the Supreme Council.

Phillips