462.00 R 296/87: Telegram
The Ambassador in France (Herrick) to the Secretary of State
481. L–40. 1. The following draft resolution has just been handed to me by Barthou39 who proposes to present it to the commission on Friday.40
“In accordance with the provisions of article 234 of the Treaty of Versailles, with a view to studying the resources and capacity of Germany, and after having given their countries’ replies a just opportunity to be heard, the Reparation Commission decides to create two committees of experts chosen exclusively among the Allied and Associated Powers.
One of these committees would be charged with seeking means of balancing Germany’s budget and measures to be taken in order to stabilize its currency.
The duty of the other would be to try to find means of estimating the capital which has escaped from Germany and forcing this capital to return.”
2. Barthou approached me informally in regard to the representation of the United States on the proposed committees. I told him I had no authority to discuss the matter. Also that it seemed to have been covered by the recent negotiations in Washington. I did, however, express my willingness to cable the Department informally and unofficially such views as the Reparation Commission cared to offer. I asked, in order to prevent the possibility of a misunderstanding, [Page 99] that the views be put in writing. I have just received the following letter from the Reparation Commission.41
“I wish to tell you again how much the presence of American experts on the proposed committees would be valued by French opinion—it desires and it awaits it. The Government with the unanimous approval of the Chamber gave a significant manifestation on Friday last in favor of the union of the Allies. The sacrifices consented to by France to realize this union deserve the most serious attention of the American Government. The formula which I communicated to you is only the exact application of the treaty itself. Whatever may be the opinions of the experts these will be expressed in a consultative capacity only and they will not bind the Reparation Commission where your position will remain entirely untrammeled. But the designation which you might consent to make of one or of several American experts for the task which I spoke to you about would have the happiest effects on the solution of the reparation problem. We are in an hour of relaxation and the atmosphere is favorable. You know how earnest are my hopes of seeing Bradbury accept this formula which he and I have already discussed. With the designation of one or more American experts the chances of success will be decisive. Excuse me for insisting. Am writing you as French delegate but I assure you that the peace of the world enters to the highest degree into my preoccupation. Signed, Louis Barthou.”
. . . . . . . . . . . . . .
3. Bradbury who is now in England has telephoned that his Government is impressed with the possibility of reaching a practical result under the Barthou formula. He is ready to support it provided (1) American members participate therein and (2) if Americans participate it will be understood that the Reparation Commission is acting solely on its own responsibility, Great Britain reserving the right to take any action deemed necessary independently of Reparation Commission if events so warrant. Bradbury says that Great Britain is about to request through diplomatic channels the sympathetic support of the United States.
4. Terms of reference to the first committee under Barthou formula are exceptionally broad. Barthou [Bradbury?] is prepared to support Barthou formula provided he has some definite assurance from Barthou as to the scope of the inquiry. Bradbury and I were advised by Delacroix that he would not attempt to limit the scope of the inquiry of the committee. He did not believe that the French representative could join in a proposition to reduce the capital reparation charge. Barthou said that he had given this to Delacroix and Bradbury as his confidential and definite assurance. It was his hope that this would prevent any debate on this feature when the [Page 100] commission meets next Sunday. Any debate on this feature would so far as French internal politics are concerned make the position of Barthou and Poincaré impossible. This informal assurance is satisfactory to Bradbury who is acting accordingly.
5. Delacroix has just written me as follows:42
“I wish to insist in the interest of peace and of a definitive agreement that an authorized American agree to sit on the committee of experts. I am strongly convinced that, in view of the tendency to secret methods and the present dispositions of the various governments, the committee of experts will prosecute its work to a successful conclusion and that its opinion will have an enormous influence in the rapprochement of the various points of view, but it is well understood that the Reparation Commission will not be bound by this opinion and the governments even less; it will only be an opinion the responsibility for which will devolve solely upon its signatories.”
6. I have been advised informally by the Italian delegate that he will support the Barthou formula under the following conditions, namely, that Belgium, France, and Great Britain are in agreement, and that American representation is highly necessary if committee is actually set up.
7. I fully appreciate the difficulties of the United States, considering the failure of the Washington negotiations in the matter of expert committee. Conditions here are tense. …
8. Four courses it seems to me are open to the Department.
- (1)
- To let commission know that Department will not send any representatives on general grounds that terms for proposed committees do not meet conditions announced by the United States at the time of the failure of the recent Washington negotiations (while the formula proposed by the representative of France together with his confidential assurances—see paragraph above—largely cover the difficulties heretofore experienced in the Washington negotiations, the confidential assurances of the representative of France cannot be given to the public).
- (2)
- To accept the invitation and name representatives. This course would probably have to be abandoned on premises set forth in (1) above.
- (3)
- To pick out certain qualified Americans and allow me confidentially and informally to suggest their names to the delegates. Then the commission could formally invite them to become a part of the committees. In this way the American representatives would have no official connection with the Government of the United States.
- (4)
- To permit me informally to notify the commission that although our Government can take neither official cognizance of the [Page 101] proposal nor suggest the names of Americans to be designated by the Reparation Commission, it would not object were the commission in its discretion to obtain the attendance of any Americans which it might choose on its invitation.
9. Please instruct me as soon as possible regarding any action I am to take. The question will be raised very shortly in the commission, and I believe it desirable that I make clear informally our Government’s attitude before the commission acts on the committee question. Logan.