462.00R296/2781: Telegram
The Chargé in France (Armour) to the Secretary of State
148. Reparation 207. From Young.
So many rumors and misapprehensions are afloat in Paris about effect of present procedure on claims of the United States that I deem it wise to inform you regarding present situation and contemplated program:
- 1.
- This entire week, practically, has been taken up with meetings of French, British, Italian and Belgian members of the Committee who represent the four heavy creditor powers here. They have been endeavoring to agree upon an offer to be made at next plenary meeting to the Germans by them. It has been impracticable to get offers from the German representatives and then have these considered by the creditor Governments for the reason that each change made in German offer would entail new and difficult questions of distribution as between the creditor powers. Each offer would compel discussion practically as full and complete as would one offer made by the creditors. The American delegation has sat with the representatives of the creditor powers at request of latter during formulation of their offer, but offer to be made is not one in which the American experts [Page 1050] join for the reason that they have been invited here by Reparation Commission and Government of Germany, so, obviously, it would be just as improper for them to join in an Allied offer to Germany as it would be for them to join in a German offer to the Allies. Position of American members has been universally accepted, and if we have to express views on figures at all, it will be, in all probability, at plenary session where any offers or counteroffers may be discussed.
- 2.
- As now drafted, the offer of the four principal creditor powers does not contain any provision for American Army costs, but it does provide for payment of mixed claims in full through annuities over period of fifty-eight years, present value of which is same as present value of the debt, if it can be assumed that the normal operation of the Dawes Plan can go on and the claims continue to be paid. As the Americans are not parties to offer of four principal creditors, and are resisting any attempt to make them parties to it, we find it quite impossible, of course, for us to say what the offer shall contain without involving ourselves in it.
- 3.
- The procedure proposed is that the four principal creditor Governments will make their offer to the Germans at plenary session to be held either tonight or tomorrow. If Germans reject offer and decline to make counteroffer, there will be disagreement on figures which will prevent there being any unanimous consent.
If the Germans do consider the offer and debate it, it will be with the understanding that subcommittee of the full Committee will be appointed to hear proposals from representatives of all minor powers participating who wish to be heard. Serbia has already asked for hearing and there are certain memoranda before the Reparation Commission in behalf of other powers. If and when such subcommittee is appointed, it would be proper for the American Government, if it wishes, to file its protests or to state its views to the subcommittee, and through subcommittee’s report the matter would be brought before full Committee at a plenary session.
All the experts, including the Americans, would then express their views regarding what should and what should not be the allowances for all minor participations. Until then the American members of the Committee do not see how they can express officially their views on question of the claims of the United States.
In closing I may say that even under the tremendous pressure of the last few days no question has been raised regarding any diminution or any change in the status of the debts to America. Young.
- Telegram in two sections.↩