467.11 W 89/2: Telegram
The Secretary of State to the Special Mission at Lausanne
196. Mission’s telegram 442 of June 20. The acts and negligence of Turkish authorities during internal disorders form the basis for many of the claims which American citizens have against Turkey. It is not usual for domestic tribunals to have jurisdiction over claims of this nature against foreign states. In the past the Turkish Government has steadfastly refused to recognize responsibility for losses or injuries which were sustained under conditions such as those upon which these claims are based. Therefore should such claims be submitted to domestic tribunals there is no reason to expect satisfactory results. The proposal that claims be submitted to Turkish courts apparently gives retroactive application to the abrogation of capitulations. The American Government does not consider acceptable any proposal entailing such results. It is doubtful whether at the time the claims arose the Ottoman courts had jurisdiction in such cases as those which constitute a large majority of the claims. The Department is not willing to enter into a treaty agreement which will make it necessary for American citizens having claims which arose prior to 1914 to incur the expense and inconvenience of instituting action in Turkish courts.
The Department is anxious to have set up such a mixed arbitral tribunal as is proposed in your draft. A tribunal of this kind would have authority to examine all claims presented to it and to decide impartially the question of the liability of the Turkish Government and to fix the amount of indemnity justly due to the claimant. This method would be fair to the American and Turkish Governments and to the American claimants. It is the way in which civilized governments adjust claims of this kind. It is to be regretted that the Turkish Government should show a lack of willingness to use so fair a method of settling vexatious questions at issue between it and the American Government.
You should make every possible effort to obtain an agreement for the setting up of a mixed arbitral tribunal for the settlement of all claims whether they arose prior to 1914 or since then. Should you fail to achieve this arrangement the Department would consider proposal such as is suggested in your final paragraph, contemplating the registration of all claims within six months with a bureau of the Turkish Government, to be followed by the endeavor of the Governments of Turkey and the United States to settle the claims through diplomatic channels, any claims failing of settlement in this way to [Page 1097] be referred for final decision to a mixed arbitral tribunal. The agreement providing for the registration and diplomatic discussion of claims should also provide for the setting up of the mixed tribunal and for the reference to this tribunal of cases failing of diplomatic settlement.