Government, receive office Railway Commissioner. Previous arrangement that such office not within gift of commission but by "appointment by a majority vote of the foreign members of the board of directors" of the railways. Barthou said the French Government does not want any other of the principal positions under plan for its nationals but that before accepting other nationals to offices within gift of commission would require assurances of other Governments through delegates on commission of their support of Frenchman's nomination by the board of directors of the railways to the post of Railway Commissioner. Bradbury said this support would be forthcoming from British provided Leverve were nominated, to which Barthou replied that Leverve would be the French nominee. The Italian and Belgian delegates intimated that their Governments were ready to support Leverve and that the necessary assurances for such appointment would be forthcoming at an early date. (5) [Paraphrase.] Referring particularly to Department's L-92, I am satisfied that discussion and decision on personnel, except Morrow and Leverve, can be postponed until after July 15, and in this way Morrow will be given the opportunity he will need of practically passing on the persons for the other principal posts within limits only of agreed program of personnel. Logan. [End paraphrase.] HERRICK 462.00 R 296/393: Telegram The Secretary of State to the Ambassador in France (Herrick) [Paraphrase] WASHINGTON, July 3, 1924-4 p.m. 213. L-94, for Logan. Your L-185, July 2, 7 p.m. Morrow finds it impossible, for personal reasons, to consider appointment, and his name will be withdrawn from consideration. The present prospect is that Owen Young will be willing to accept appointment, under certain conditions, for a definite time. Question of appointment should be held in abeyance until London Conference, when whole situation will be discussed. Owen Young sails July 5 on the Leviathan. During the conference in London I do not desire that there be any announcement with respect to appointment of an American Agent, although for your information and discreet use I may say that this Government has no objection to such an appointment. Department wishes you to arrange to be in London when Young arrives. 462.00 R 296/504: Telegram The Secretary of State to President Coolidge 41 HUGHES WASHINGTON, August 16, 1924. Kellogg telegraphs that Norman 42 and Lamont 43 now intend suggesting Gilbert, recently Under Secretary of Treasury, for Agent General. Young feels that this is excellent suggestion but in view of his own commitment does not wish to change position without approval here. If you approve I shall telegraph Kellogg that there is no objection here to this appointment provided the suggestion comes in the proper way from the Governments represented on the Reparation Commission and has the approval of Germany. Kellogg states that the above is strictly confidential and desires earliest possible reply. HUGHES 462.00 R 296/511: Telegram The Secretary of State to the Ambassador in Great Britain (Kellogg) [Paraphrase] WASHINGTON, August 17, 1924-noon. 302. Following has been received from the President: "I would prefer Young but entirely satisfied with Gilbert." Of course it is understood that suggestion should come in the proper way from Governments represented on Reparation Commission and should have approval of Germany. Permit me once more to express my hearty congratulations on outcome of conference at London " and very important service you have rendered. Please convey to Logan my deep appreciation of his invaluable work. HUGHES "At Ludlow, Vt. 42 Montagu Norman, Governor of the Bank of England. 43 Thomas W. Lamont, member of the banking firm of J. P. Morgan & Co., New York City. "See pp. 24-55 passim. 462.00 R 296/512: Telegram The Ambassador in Great Britain (Kellogg) to the Secretary of State [Paraphrase] LONDON, August 18, 1924—noon. [Received August 18-8:10 a.m.] 354. I think Young should accept position of Agent General even if he has to retire within a few months. There is no opposition from any Government to him, and he will be of the greatest use in starting the plan. I believe he will be satisfactory to all the financial interests. KELLOGG 462.00 R 296/512: Telegram The Secretary of State to the Ambassador in Great Britain (Kellogg) [Paraphrase] WASHINGTON, August 18, 1924-1 p.m. 305. I am in entire accord with your point of view. I think Owen Young's appointment is highly desirable if it can be effected. HUGHES 462.00 R 296/522: Telegram The Ambassador in Great Britain (Kellogg) to the Secretary of State [Paraphrase] LONDON, August 19, 1924-1 p.m. [Received August 19-8:38 a.m.] 359. Young canceled his sailing reservations for tomorrow. He will go to Paris and work out plan of reparations as Agent General. I think that it will be arranged to carry out your original program for his temporary appointment to start the Dawes Plan in operation. He hopes that arrangement as to permanent Agent General may be reached as soon as possible. KELLOGG 462.00 R 296/567: Telegram The Chargé in France (Whitehouse) to the Secretary of State PARIS, September 3, 1924-5 p.m. 399. L-217. Gilbert's formal appointment as Agent General for reparation payments announced by Reparation Commission 4 o'clock this afternoon. Logan. WHITEHOUSE PAYMENT BY BELGIUM OT THE UNITED STATES ON ACCOUNT OF THE COSTS OF THE AMERICAN ARMY OF OCCUPATION IN GERMANY 462.00 R 294/365: Telegram The Ambassador in France (Herrick) to the Secretary of State [Paraphrase] PARIS, May 13, 1924-3 p.m. 255. L-161, from Logan. The Belgian representative on the Reparation Commission has approached me on the following matter: (1) The sum of approximately 100,000,000 gold marks is on deposit at Coblenz as the net product of the Ruhr occupation obtained jointly by Belgium and France. France is agreeable to handing this sum over to Belgium directly for application on Belgian priority, deeming it to be reparation money. (2) To avoid at this important juncture raising difficult questions of the legality of the Ruhr occupation and Belgian accounting for Ruhr army costs, etc., both Belgium and France prefer not to put this money through the Reparation Commission in the regular course. Bradbury" thinks it highly desirable to avoid raising issues such as these at present and does not object to the proposed disposition of funds. (3) Belgian representative states it is feeling of Prime Minister Theunis that in fact and in equity even if not technically the payment does constitute a cash reparation payment and thereby falls within intent of language of Army Costs Agreement.* (4) In spite of fact that Army Costs Agreement has not been ratified, Belgian representative says that his Government, following broad policy outlined in Bemelmans' letter of November 22, 1923,48 which I forwarded to Department in December, 1923, feels bound morally to put aside 25 percent of amount it receives in a blocked or special account which will be available to Government of the United States in part payment of American Army costs if and when Army Costs Agreement is ratified. (5) I do not see any objection, under the circumstances, to our Government's accepting special agreement, and I feel that the possible chance of our getting several million dollars should not be lost. We shall not be entangled indirectly in Ruhr controversy because funds would not be specifically set aside for us as Ruhr proceeds, but 40 Telegram in three sections. Sir John Bradbury, British representative on the Reparation Commission. Foreign Relations, 1923, vol. II, p. 180. 47 48 Not printed. instead would be merely a cash reparation settlement received from Germany by Belgium without regard to the immediate source. (6) I suggest that the Department authorize me to communicate with the Belgian representative in terms substantially as follows (if place of deposit or method of withdrawal is unsatisfactory, a change in either instance would readily be made): 49 "I have not failed to communicate to my Government the generous proposal which you have made that 25 percent of a cash sum of approximately 100 million gold marks which the Belgian Government expects shortly to receive upon the reparation account of Germany should be set aside in some special or blocked account for the ultimate benefit of the United States in view of the fact that by the terms of the pending agreement relative to the reimbursement of the costs of the American Army of Occupation to which Belgium is a signatory, the United States would be entitled to 25 percent of the cash reparation receipts subject to certain modifications which are not material for the present purposes. It is understood that although the agreement is not yet effective, the Belgian Government is ready to set aside 25 percent of the sum in question for payment to the United States as soon as the agreement shall have been ratified. I have the honor to advise last [you?] that the Government of the United States accepts the proposal which you have made and appreciates the liberal attitude of the Belgian Government in spontaneously suggesting this action. My Government will be pleased should the Belgian Government see fit to carry its suggestion into effect by causing the Banque Nationale de Belgique to open a special account in the Federal Reserve Bank of New York to be known as the 'American Army costs account' into which shall be deposited in dollars the proper proportion of the cash reparation payments now under consideration and withdrawals from which shall be made upon the order of the Treasurer of the United States if and when the agreement relative to the reimbursement of the costs of the American Army of Occupation is ratified and pending such ratification shall be effected only by a specific decision of the Reparations Commission in each case. Accept, etc., etc." To (7) The method set forth above of creating deposits follows line taken with respect to relinquishment of all cash payments subject to requirements of Reparation Commission in regular course. introduce Reparation Commission as protective medium against the withdrawal of money for purposes besides payment of American Army costs does not involve commission in decision of any question about the Ruhr, for by that time money will have lost entirely its identity as a Ruhr product and will be merely the property of the Belgian Government in dollars which is put aside for the benefit of the Government of the United States upon ratification of the Army Proposed communication not paraphrased. |