462.00 R 294/344: Telegram
The Ambassador in France (Herrick) to the Secretary of State
[Received 7:10 p.m.]
319. L–181 [from Logan]. Your L–47.67 Question of repartitioning of Bulgarian payments discussed by commission today as presented in annex 2099 A B C D mailed to the Department June 2nd.68 Commission decided request delegates to refer this question to their respective Governments. In view of your L–47 and relation to question to [of] army costs I made following statement:
“The report of the Finance Service now under consideration states that it has not taken into account the possibility of any claim being made by the United States Government against the Bulgarian payments since the agreement of May 25, 1923 has not yet been ratified.
I permit myself to call the attention of the commission to decision number 2751 of December 16, 1923 by which the commission took conservative measures and created a special blocked account into which was to be deposited that proportion of all accruing cash payments which are available for the reimbursement of the American Army costs.
Pursuant to the terms of that decision, therefore, it would appear that even though the American Army Cost[s] Agreement has not yet been ratified, the proper proportion of all accruing cash payments applicable to those costs under the terms of the agreement should be placed in this account.
Upon the instructions of my Government I desire to say that the Bulgarian payments are considered by it as applicable to the American Army costs pursuant to the ratification of the pending Army Cost[s] Agreement, particularly paragraph 3 of article 2 thereon. If credited to Bulgaria’s reparation account as now contemplated it would seem that they must simultaneously and automatically be applied to the reparation account of Germany and as such fall within the scope of Army Cost[s] Agreement.
[Page 156]I desire to make the position of the United States a formal matter of record and to state that the Bulgarian cash payments if credited on Germany’s reparation account should in the proper proportion be placed in the special account created by decision 2751 when they are released from the account where they now are.
I note the decision just taken by Reparation Commission and I will be obliged if the delegates in referring this matter to their respective governments would at the same time call the attention of these governments to the remarks which I have just made. Furthermore I would appreciate it were the decision of the commission to be so worded as to contain an invitation to the delegates to follow the course I have just suggested.”
The commission decided accordingly. Logan.