467.11 W 89/2: Telegram

The Special Mission at Lausanne to the Secretary of State

[Paraphrase]

442. This afternoon Shaw, Turlington, and two Turkish experts met to discuss American claims. The American experts avoided describing claims in detail but indicated that a majority of those claims which have been called to the attention of the Department but not finally passed upon as yet are for loss of life or property since 1914. Obviously the Turks desired to examine claims. They said that without doing this they could not intelligently agree as to a mode of settlement. The Turkish experts explained their attitude regarding claims at length. In brief their proposal is that the American claims be divided into the following categories:

1.
Claims which were presented to the Government of the Ottoman Empire prior to 1914. They desire to refer these with all pertinent papers in present condition to the Turkish courts to be decided, due regard being had to the abrogation of capitulations.
2.
Claims which arose prior to 1914 but which were not presented to the Ottoman Government. They desire that these should also be referred to the Turkish courts, regard being had, as in class 1, to the abrogation of capitulations.
3.
Claims arising since 1914. For these the Turks propose the following procedure:
(a)
All claims must be presented by interested persons within six months of the coming into force of the treaty to a government bureau at Constantinople. This bureau will examine the claims and seek to settle directly with the claimants.
(b)
Claims which are not settled through the government bureau shall be examined during a further six months’ period by the American and Turkish Governments in an endeavor to find a mode of settlement by referring the claims to Turkish courts, by arbitration, or in some other manner in accordance with the nature of the claims.

Our two experts emphasized that it was our desire to have occasion for friction removed by a treaty provision by which existing claims would be settled in accordance with judicial principles, and that a mixed tribunal of arbitration such as we proposed could most appropriately consider the extent to which the present Turkish Government [Page 1092] was under obligation as successor to the former Ottoman Government and other issues which appeared to cause the Turks particular concern.

We suggest for the consideration of the Department the possibility of our accepting a treaty provision that claims arising subsequent to 1914 be registered in a government bureau within six months, with the further provision that during an additional period of six months efforts shall be made to bring about a settlement between the American and Turkish Governments. It would be provided that all claims for the settlement of which no other method is agreed upon shall be presented to the mixed tribunal of arbitration which is contemplated in the 17th article of our draft treaty.

Instructions are requested.

Grew