462.00 R 296/66: Telegram
The Ambassador in France (Herrick) to the Secretary of State
460. Following is translation of a letter just received from Poincaré.
“I was about to request you to come once more to speak with me concerning the question of convening a committee of experts to study the German situation when I read in this morning’s newspapers that your Government had taken a decision in the matter declaring that an inquiry by a committee of experts which took into consideration Germany’s capacity to pay only during a period terminating at the end of 1930 would be a vain endeavor and without any use whatever.
[Page 96]I wish to emphasize at once how much I regret that in spite of the very complete and in my opinion very precise explanations which I gave to our Ambassador at Washington and which were exposed to you by me and my collaborators the United States Government should not have been disposed to take part in the investigations of a committee of experts whose duty it would be to study Germany’s capacity to pay for a limited period. You have well understood that it was impossible for me to go beyond limits fixed by the treaty of peace and you have read the communiqué which I had published in the press yesterday to make our position clear. In specifying a period of six years I had gone to the farthest limit permitted by the treaty but in my opinion the experts could not even see as far ahead as that. I consider in fact that the present situation of Germany does not permit anything but the evaluation of her present capacity, that is to say the evaluation of capital, riches, resources as stated in the treaty which she possesses abroad as well as within her frontiers, resources which we all know are dissimulated and hidden, and then the study of the manner in which a part of these resources can be transferred to the account of reparations without preventing Germany from emerging from the situation in which she has voluntarily placed herself.
There again the experts would have had to give to Germany absolutely precise instructions upon the reforms necessary in order to reestablish her financial situation and stabilize her exchange. That task alone appears formidable to me. The Reparations Commission has in vain attempted to accomplish this during the past five years. She [It?] has constantly run up against the ill will of the German Government which has never shown it any but falsified statistics. To eradicate [sic] a plan of payment even for six years when it concerns a country which possesses neither credit nor money is in my opinion absolutely vain; on the contrary if Germany made the effort which we all expect of her and if the experts had a task to dictate to her, if her currency found once more a purchasing power abroad, and if Germany could once more find credit after having brought about at home the necessary reforms, it would be easy to prepare a plan of payment covering a relatively extended period for one would have a basis upon which to work; it is that basis which is absolutely missing at the present moment.
But the American Government does not even accept this period of six years which I myself consider impossible to attain; what does it wish then? To evaluate the total capacity of Germany to pay for an indefinite period is equivalent to diminishing the total sum due by Germany for reparations in [by?] indulging in calculations which rest upon absolutely no basis and contrary to the wishes so squarely and so friendly affirmed to M. Jusserand by Mr. Hughes himself.
You know that I share your desire to see established between the United States and Europe and particularly France close cooperation. We are profoundly touched by the sincere friendship of which you have given us so many proofs; we know your acute sense of political necessity as much American as French. I have done all I can to respond to those sentiments. I wish that you could be convinced thereof and I hope that you may convince President Coolidge and the Secretary of State. I know that they are animated towards [Page 97] France with the same sentiments of affection as you [yourself.] And I have not lost hope of seeing the day arrive when they will realize that we have no other object in maintaining peace in Europe but to lead it to this economic development which the United States themselves desire.”
My 459, November 10, noon.36 The Foreign Office informs me that it has just received a telegram from Jusserand stating that negotiations with you regarding commission of experts were at an end.