462.00 R 296/391: Telegram
The Secretary of State to the Ambassador in France (Herrick)
217. L–96, for Logan.
(1) Department is considering forwarding for presentation to the British, French, Belgian, and Italian Governments a note verbale; following is paraphrase of draft:
(2) The Government of the United States has noted that the experts’ plan, the application of which is to form the subject of the London Conference, contains the provision that the payments contemplated comprise amounts for which Germany is liable to the Allied and Associated Powers for war costs. Pursuant to the terms of the treaty proclaimed November 14, 1921,33 between the United States and Germany, the latter is liable for satisfaction of American war claims, and in view of the above-cited provision in the experts’ report the Government of the United States desires to reach an understanding with the Allied Governments in order that its and their claims may be paid suitably.
The Government of the United States understands that the conference at London is to deal with the measures to put the experts’ plan into effect as speedily as possible, and that it is not proposed to examine questions of apportionment among the Allied and Associated Powers to which Germany is liable. This Government would, however, be glad to be informed when and how it is proposed to consider apportionment in order to be in position to indicate its views and appropriately to discuss the question with the Governments concerned.
In the American claims there are included, first, the Army costs and, in the second place, the other claims of this Government and the claims and debts submitted for adjudication to the Mixed Claims Commission. As all the signatory powers have not yet ratified the Army Costs Agreement of May 25, 1923, it may be desirable to include suitable provision concerning these Army costs in any new arrangement entered into concerning apportionment of payments. It is unnecessary to dwell on the special position of this claim and the importance which this Government attaches to the payment of it at the earliest possible moment, particularly as American Army costs have not been met while similar costs of the Allies have been covered fully or substantially from past German payments.
The total of the American claims of the second category comes to much less than similar claims of the Allies. It should be borne in mind, in this connection, that this Government, although under its treaty with Germany it is entitled to assert claim under categories 5 to 7 of annex I part VIII, of the Treaty of Versailles, has notified Germany that it makes no claim under these heads. Clearly both the Government and nationals of the United States are fairly entitled to be paid their claims and debts on an equal footing with the [Page 43] claims and debts of the Allies and Allies’ nationals, as in equity they rank pari passu with these claims and debts. Such payments to this Government, which would be relatively small in amount, would, of course, form a part of “inclusive” payments to which section XI, part I, of the experts’ report refers, and as far as concerns transfer pursuant to the procedure contemplated in annex 6 of the experts’ report would be on an equal footing with payments to the Allies.
Obviously it is of importance that the Allies and the United States, in seeking the payment of their just claims, should act in cooperation instead of seeking payment separately with the possibility that misunderstanding might follow.
(3) You will consult with Ambassadors Herrick and Kellogg, obtaining Mr. Kellogg’s views by telegraph; and advise the Department as soon as possible whether there are any suggestions which they and you have to offer in the matter, or whether any objection is perceived to submitting such a note at this time as the one proposed.
(4) Repeat to the Embassy in Great Britain as Department’s no. 186.