GERMANY

DAWES

INSISTENCE BY THE UNITED STATES UPON ITS RIGHT TO PARTICIPATE IN THE
DISTRIBUTION OF GERMAN REPARATION PAYMENTS UNDER THE
PLAN-Continued

Date and
Number

Subject

Page

1924

Nov. 20 (484)

Nov. 21

Nov. 24 (877)

Nov. 24 (433)

Nov. 26 (535)

Nov. 28 (139)

Νον. 29 (424)

From the Ambassador in Great Britain (tel.)

Presentation of oral and written representations to Chamber-
lain and Sir Eyre Crowe setting forth legal and equitable
grounds for U. S. claims. Chamberlain's denial that there was
any dispute over U. S. Army costs; his expressed surprise over
U. S. claims for reparations, stating that the British members
of the experts' commission had no knowledge that U. S. claims
were envisaged in insertion in Dawes report of phrase "Allied
and Associated Powers;" and his intimation that if the United
States was to receive reparations it should give credit for alien
property seized, especially ships. Request for U. S. attitude
and position on ships and alien property.

From the Unofficial Representative on the Reparation Commis-
sion

Memorandum of a conversation between the French Minister
of Finance and Logan at the Finance Ministers' Conference,
October 25 (text printed) constituting a formula of French
position and French assurance of support of American claim
to participation in Dawes annuities. Memorandum by Bel-
gian Assistant Delegate, November 19 (text printed) accepting
French formula and giving similar assurances.

From the Ambassador in Great Britain

Memorandum left with the Foreign Minister, November 15 (text printed) setting forth the legal and equitable bases for U. S. claims; and expressing willingness to recast the Army Costs Agreement and to make an extension of the time of payments, provided a reasonable percentage of the money paid into the bank for reparations is also allowed on the U. S. general claims.

To the Ambassador in Great Britain (tel.)

79

80

84

91

Brief statement of the Department's position on ships and alien property.

From the Ambassador in France (tel.)

92

From Logan: Information that at the experts' meeting that morning he had orally presented the U. S. claims and the legal and equitable bases for them; that the French and Belgian representatives had supported the U. S. position; but that the British, Italian, and Japanese representatives had stated that they were without instructions to support the U. S. position. To the Chargé in Italy (tel.)

Instructions to make representations to Foreign Office and request support of U. S. claims at Paris.

To the Ambassador in France (tel.)

For Logan: Opinion that it would be dangerous to base legal position upon alteration of Treaty of Versailles. Explanation that legal position of United States is based upon Armistice, Treaty of Versailles, resolution of Congress approved July 2, 1921, and treaty of August 25, 1921, with Germany. Concurrence with suggestion that legal rights should be stressed and appearance of resting case wholly on equitable grounds be avoided.

20

93

94

GERMANY

INSISTENCE BY THE UNITED STATES UPON ITS RIGHT TO PARTICIPATE IN THE DISTRIBUTION OF GERMAN REPARATION PAYMENTS UNDER THE DAWES PLAN Continued

Date and
Number

Subject

Page

1924 Dec. 1 (177)

Dec. 4 (433)

Dec. 4 (509)

Dec. 9 (457)

Dec. 14

(209)

Dec. 19 (585)

From the Chargé in Italy (tel.)

Information that Italian representative has been instructed to support the U. S. position.

To the Ambassador in France (tel.)

Information of the receipt of a British note proposing the postponement of the meeting of Finance Ministers to January 6, 1925, and the Department's reply that the proposed date is acceptable. Instructions to inform the Foreign Office.

(Instructions to repeat to Brussels and Rome and give copy to Logan.)

From the Ambassador in Great Britain (tel.)

Memorandum dated December 3 received from Chamberlain (text printed) admitting U. S. claims for Army costs, but denying legality of U. S. claims for damages to persons and property; stating willingness, however, to discuss U. S. claim for damages on condition that amount of U. S. claim should be stated, claim should be reduced to proportion to which signatories of Versailles Treaty reduced their claims, and value of German property in U. S. custody should be credited on U. S. claim. Ambassador's comments and suggestions as to reply.

To the Ambassador in Great Britain (tel.)

Note for Chamberlain (text printed) presenting arguments upholding legal as well as equitable right of the United States to participate in payments by Germany under Dawes Plan; and expressing willingness to make fair arrangement as to annual extent of American participation.

To the Ambassador in Japan (tel.)

Information for discreet use in effort to enlist Japanese support, which has been given only tentatively and confidentially. From the Ambassador in France (tel.)

108

From Logan: Request for specific instructions as to Department's present position on certain questions, in preparation for the Finance Ministers' Conference.

Dec. 22 (590)

From the Ambassador in France (tel.)

111

Foreign Minister's note, December 20 (text printed) fixing January 6, 1925, as the date of the Finance Ministers' Conference.

112

Dec. 23 (342)

Dec. 24

(480)

From the Ambassador in Japan (tel.)

Conversation with the Foreign Minister in which the Foreign Minister admitted that on equitable grounds there was no reason to question the U. S. claim, but that the legal basis of the claim was still under consideration; and the Ambassador intimated that the United States is prepared to apply alien property fund against its claims and would make some reduction in its claims.

To the Ambassador in France (tel.)

For Logan: Specific information as to Department's posi-
tion on certain questions, as requested by Logan.
(Instructions to repeat to Great Britain.)

10884 VOL. II-39-2

113

GERMANY

INSISTENCE BY THE UNITED STATES UPON ITS RIGHT TO PARTICIPATE IN THE
DISTRIBUTION OF
GERMAN REPARATION PAYMENTS UNDER THE DAWES

PLAN-Continued

Date and
Number

1924

Dec. 24 (482)

Dec. 24 (483)

Dec. 26 (485)

Dec. 29 (606)

Dec. 30 (492)

Dec. 31 (546)

Subject

Page

To the Ambassador in Great Britain (tel.)

115

Desirability of Ambassador's presence at the Finance Ministers' conference.

To the Ambassador in Great Britain (tel.)

Information that the U. S. Ambassador to Japan has inadvertently made incorrect statements to Japan concerning the U. S. position on application of alien property fund against U. S. claims and regarding reduction in U. S. claims; and that the Ambassador has been instructed to make the U. S. position clear to the Japanese Foreign Minister and ascertain whether his statements have been telegraphed to Japanese missions in Europe.

(Instructions to repeat to Logan.)

To the Ambassador in Great Britain (tel.)

Report from Ambassador in Japan that American position has been made clear to Japanese Foreign Minister and that no communications have been sent out based on misunderstanding.

(Instructions to repeat to Logan.)

From the Ambassador in France (tel.)

From Logan: Letter dated December 23 from the British representative on the experts' committee (text printed) requesting confirmation of his understanding that the U. S. delegation intends to claim that (1) U. S. Army costs arrears should be met by an annuity spread over 24 years from January 1, 1923, which would be a prior claim charge on future cash receipts and would amount to an annuity not exceeding 50 million gold marks, and (2) the other claim would be met by an annuity not exceeding 50 million gold marks, expressed at percentage of Dawes annuity, which would not be entitled to any priority and would be transferred pari passu with reparation shares of Allied Powers. Transmittal of his proposed reply.

To the Ambassador in France (tel.)

Note for Foreign Minister if Logan concurs (text printed)
stating that the date of January 6, 1925, for the Finance Minis-
ters' Conference is entirely agreeable to the U. S. Government,
which has taken steps to be represented at the conference; and
expressing opinion that decisions regarding allocation of an-
nuities should cover as many years as possible, their applica-
tion not being restricted to the first years of the plan.
From the Ambassador in Great Britain (tel.)

Chamberlain's note, December 29 (text printed) presenting
further arguments and representations against participation
of the United States in payments to be made by Germany
under the Dawes Plan; and suggesting arbitration of question.

115

116

117

118

119

GERMANY

INSISTENCE BY THE UNITED STATES UPON ITS RIGHT TO PARTICIPATE IN THE DISTRIBUTION OF GERMAN REPARATION PAYMENTS UNDER THE DAWES PLAN Continued

Date and
Number

Subject

Page

1924 Dec. 31 (495)

1925 Jan. 3 (7)

Jan. 3 (11)

Jan. 3 (9)

Jan. 3

To the Ambassador in Great Britain (tel.)

Instructions to proceed to Paris for Finance Ministers' Conference, his presence being necessary to carry out U. S. intention to meet the British at Paris and press for a full discussion of U. S. claims and insistence on U. S. rights and to make British opposition as inconvenient for them as possible, being ready, however, at the same time to reach an amicable adjustment on a reasonable basis.

(Similar instructions sent to Logan and Herrick on December 31.)

From the Ambassador in France (tel.)

Information that note accepting invitation to Finance Ministers' Conference was delivered December 31.

From the Ambassador in France (tel.)

From Logan: Cynical comment by British representative in regard to American plan for settlement of claims. Presentation of memorandum to British representative in reply to his request for confirmation of his understanding of U. S. delegation's scheme for settlement.

To the Ambassador in Great Britain (tel.)

Note for Chamberlain (text printed) restating the bases for
the U. S. claims and the U. S. scheme for settlement, and refus-
ing the British suggestion that the matter be submitted to
arbitration.

From the American Representative at the Preliminary Meeting of
Experts to the British Representative

Confirmation of the British representative's understanding
of the U. S. delegation's scheme for settlement, together with
certain observations.

125

126

126

127

132

APPOINTMENT OF AN AMERICAN as AGENT GENERAL FOR REPARATION PAYMENTS UNDER THE DAWES PLAN

1924 June 25 (313)

From the Ambassador in France (tel.)

From Logan: British desire for an American, preferably
Dwight Morrow, as Agent General for reparation payments.
Opinion that Wall Street banker is not best choice, considering
socialist and anti-capitalist tendencies in Europe.

For Logan: Owen Young's cablegram to British member of committee of experts (text printed) suggesting that choice of Agent General should be unanimous.

June 29 (207)

To the Ambassador in France (tel.)

July 2 (324)

From the Ambassador in France (tel.)

From Logan: Unanimous desire of delegates for the appointment of an American for Agent General; French condition that a French national, preferably Leverve, be appointed as Railway Commissioner, to which the other delegates agree to lend support.

135

136

136

GERMANY

APPOINTMENT OF AN AMERICAN AS AGENT GENERAL FOR REPARATION PAYMENTS UNDER THE DAWES PLAN-Continued

Date and

Number

Subject

Page

1924 July 3 (213)

To the Ambassador in France (tel.)

137

For Logan: Information that Morrow declines appointment and that Owen Young will accept under certain conditions and for a definite time.

Aug. 16

To President Coolidge (tel.)

138

From the Ambassador in Great Britain (tel.)

Aug. 17 (302)

Aug. 18 (354)

British suggestion of Gilbert, recent Under Secretary of U. S.
Treasury, for Agent General; no objections by Young and
Department if appointment meets with approval of interested
Governments.

To the Ambassador in Great Britain (tel.)

138

The President's approval of Gilbert, although preferring
Young. Appreciation of services of Kellogg and Logan.

139

Opinion that Young should accept position of Agent General, even if temporarily, in order to start plan.

Aug. 18 (305)

To the Ambassador in Great Britain (tel.)
Desirability of appointment of Young.

139

Aug. 19 (359)

From the Ambassador in Great Britain (tel.)

139

Young's intention to go to Paris to work out plan of reparations as Agent General, pending permanent appointee.

Sept. 3 (399)

From the Chargé in France (tel.)

139

From Logan: Formal appointment of Gilbert as Agent General for reparation payments.

PAYMENT BY BELGIUM TO THE UNITED STATES ON ACCOUNT OF THE COSTS OF THE AMERICAN ARMY OF OCCUPATION IN GERMANY

1924 May 13 (255)

May 28 (171)

From the Ambassador in France (tel.)

From Logan: Belgian representative's oral proposal that Belgium deposit in a special blocked account for U. S. Army costs, to await ratification of Army Costs Agreement, 25 percent of the 100,000,000 gold marks on deposit at Coblenz as net product of the Ruhr occupation, which will be turned over to Belgium directly for application to Belgian priority. Draft reply (text printed) accepting proposal and suggesting that the special account be opened in the Federal Reserve Bank of New York.

To the Ambassador in France (tel.)

For Logan: Authorization to inform Belgian representative orally that the United States would have no objection to proposed special account in favor of Army costs, on understanding that assent of other Governments concerned has been obtained. Instructions to telegraph text of any written proposal and text of proposed reply.

140

142