462.00 R 296/694a: Telegram
The Secretary of State to the Ambassador in France (Herrick)
386. L–143, for Logan. The Department has just been consulted by J. P. Morgan and Company on the proposed French $100,000,000 loan which the firm is considering bringing out shortly if the Department sees no objection to it. The bankers’ negotiations, which have been under way for some time, have been awaiting consummation of the German loan. The bankers have also taken the position that they would not bring out the proposed French loan until France had balanced her budget. On the basis of the Herriot government’s budget, which the bankers feel is likely to be accepted, they now appear inclined to proceed.
Other questions aside and apart from the position of the Department of Commerce and the Treasury, both of which I am now about to consult, I should certainly oppose flotation of a French loan in the United States were there any doubt of France’s support at the forth-coming [Page 73] Finance Ministers’ conference, and I have already intimated as much to the bankers confidentially. From your telegram of October 30, L–243, I gather that Herriot and Clémentel are committed to support of the position of the United States. The Department does not desire to raise this question in such a manner as to give needless offense, but it must not take the risk of failing to make good the just claims of this Government. This matter is of such importance that you are authorized to communicate informally on this point with Herriot or Clémentel and to obtain definite assurance of French support of our claim for participation in the Dawes Plan annuities substantially on the basis you outline in your L–243.
I am communicating the foregoing to our Ambassador in Great Britain, confidentially, and am suggesting to him that he seek earliest favorable opportunity to ascertain position of Prime Minister or of Austen Chamberlain66a on payment of American claims.
Telegraph reply as well as any comment on the foregoing and related questions as soon as possible, for the bankers will await the Department’s answer.
- British Secretary of State for Foreign Affairs.↩