Office of the Historian

463.00 R 29/118: Telegram

The Chargé in France (Whitehouse) to the Secretary of State

Paris, August 7, 1922—4 p.m.
[Received August 11—12:28 a.m.]

311. [From Logan5] B–732.

1.
Commission6 today approved textual Austrian law July 24 creating Austrian bank [of] issue and released for twenty years [Page 620] revenues from customs, salt mines and forests and domains in guarantee this bank. Decision substantially unanimous with exception Italian approval being subject ratification Italian Parliament and abstention of Servian delegate communicated through common delegate with explicit request abstention not to be considered as negative vote but entirely due absence instructions from Government.
2d.
Commission in view extreme urgency of situation has formally brought both all [sic] Allied and neutral governments holders Austrian relief bonds series B to effect:

“Commission understands unofficially all governments prepared suspend their claims under relief bonds to the extent necessary realization plan for new Austrian bank [of] issue, therefore Commission assumes action it has taken with a view to best interest Austria and creditors will be approved. Situation one of great urgency. Commission suggests government[s] communicate their regrets [decision?] at earliest possible moment direct to Austrian Government, trusting reply being agreement its decision.”

Schuller states Austrian Finance Minister able to meet running expenses to 7th providing operation new bank assured by that date. Government plans beginning underwriting Monday August 7 and estimates time needed complete operation four weeks. If delayed Finance Minister obliged to demand appropriation current expenses which will mean recourse to printing. Government accordance announced decision has stopped printing, therefore consequences new issue now for whatever purpose held prejudicial restoration confidence and would seriously jeopardize bank venture.

I suggest Boyden7 be consulted. Request Department advise action taken to permit reply to Commission.

Copy this cable sent American Legation Vienna. Logan.

Whitehouse
  1. Col. James A. Logan, Jr., assistant American representative on the Reparation Commission.↩
  2. Reparation Commission.↩
  3. Roland W. Boyden, American representative on the Reparation Commission.↩