871.51/579: Telegram
The Acting Secretary of State to the Chargé in Rumania (Riggs)
46. Your 68, October 10, 1 p.m. Department considers that private debts, whether pre-war or post-war, owed between Rumanian[s] and Americans should be adjusted by the interested parties directly, and should not be subject to governmental interference. See views of this Government set forth in instruction 215, August 22, 1923, and in paragraph 7, Department’s telegram 34, July 7 [30], 1924, and unnumbered sixth paragraph of its No. 44, October 15.64
Department informed that Rumania has disregarded this Government’s request and has again extended Term of Grace Law, which it is understood prevents American creditors from collecting debts due in American dollars, even where Rumanian debtor may be perfectly solvent. As heretofore indicated, Department considers such a blanket prohibition preventing payment irrespective of financial capacity of debtor is an improper and arbitrary governmental interference [Page 660] with the right of private contract. Mr. Jay, who is leaving Saturday, is fully aware of Department’s position and will make further representations upon his return. You may, however, orally intimate to delegate views contained in this telegram.
While this Government could not in any way commit its nationals without their consent in each case, and therefore the Legation could not properly undertake any negotiations on behalf of American creditors generally, you may in any particular case render an American creditor at his request such informal assistance as might be proper.
The Department has no definite information as to the amount due American creditors from Rumanians.