462.00 R 294/365: Telegram

The Secretary of State to the Ambassador in France (Herrick)

[Paraphrase]

171. L–76, for Logan. Your L–161, May 13, 3 p.m. The Department has noted your statement that British member of Reparation Commission does not object to proposed disposition of funds in question which you state will constitute a cash reparation payment by Germany. The Department assumes that the Belgian Government has already obtained or will obtain assent of the other Governments concerned to the special agreement, that is, to the payment of this money directly to Belgium to apply on Belgian priority, and that, furthermore, those Governments having an interest have consented or will consent to the Belgian proposal to set aside 25 percent of the amount in a blocked account for American Army costs to await ratification of the Army Costs Agreement. Of course you will realize that the Government of the United States would not desire to be thought of as expressing any opinion either in regard to the special agreement proposed or to the funds in question.

On the understandings set forth above, the Government of the United States would have no objection were the Belgian Government, in view of Bemelmans’ letter of November 22, 1923,50 to set up a special account in favor of American Army costs. You may state this orally to your Belgian colleague in reply to his oral inquiry and you may confirm your statement in writing within the foregoing limits in answering any written proposal by him along lines of his statement to you reported in your telegram of May 13, 3 p.m. Before you make any reply, telegraph text of any communication you receive from him and text of reply you propose to make.

Hughes
  1. Not printed.