the President to make such a proclamation and this was done in the case of Mexico on January 7, of this year.24

In view of the present chaotic conditions existing in Honduras I feel that such a proclamation should immediately be issued and I am enclosing such a proclamation herewith for your signature,25 should it meet with your approval.

Faithfully yours,

CHARLES E. HUGHES

815.113/52

Proclamation No. 1689, March 22, 1924, Prohibiting Exportation of Arms and Munitions of War to Honduras

BY THE PRESIDENT OF THE UNITED STATES OF AMERICA

A PROCLAMATION

WHEREAS, Section I of a Joint Resolution of Congress, entitled a "Joint Resolution to Prohibit the Exportation of Arms or Munitions of War from the United States to Certain Countries, and for other Purposes", approved January 31, 1922, provides as follows:

"That whenever the President finds that in any American country, or in any country in which the United States exercises extraterritorial jurisdiction, conditions of domestic violence exist, which are or may be promoted by the use of arms or munitions of war procured from the United States, and makes proclamation thereof, it shall be unlawful to export, except under such limitations and exceptions as the President prescribes, any arms or munitions of war from any place in the United States to such country until otherwise ordered by the President or by Congress."

And whereas, it is provided by Section II of the said Joint Resolution that "Whoever exports any arms or munitions of war in violation of section I shall on conviction be punished by fine not exceeding $10,000, or by imprisonment not exceeding two years, or both."

Now, therefore, I, Calvin Coolidge, President of the United States of America, acting under and by virtue of the authority conferred in me by the said Joint Resolution of Congress, do hereby declare and proclaim that I have found that there exist in Honduras such conditions of domestic violence which are or may be promoted by the use of arms or munitions of war procured from the United States as contemplated by the said Joint Resolution; and I do hereby admonish all citizens of the United States and every person to abstain from every violation of the provisions of the Joint Reso

lution above set forth, hereby made applicable to Honduras, and I do hereby warn them that all violations of such provisions will be rigorously prosecuted.

And I do hereby enjoin upon all officers of the United States, charged with the execution of the laws thereof, the utmost diligence in preventing violations of the said Joint Resolution and this my Proclamation issued thereunder, and in bringing to trial and punishment any offenders against the same.

IN WITNESS WHEREOF, I have hereunto set my hand and caused the seal of the United States to be affixed.

DONE at the City of Washington this twenty-second day of March in the year of our Lord one thousand nine hundred and [SEAL] twenty-four and of the Independence of the United States of America the one hundred and forty-eighth.

By the President:

CHARLES E. HUGHES

CALVIN COOLIDGE

815.113/68a

Secretary of State.

The Secretary of State to President Coolidge

WASHINGTON, May 14, 1924. DEAR MR. PRESIDENT: On March 22, 1924 you issued a proclamation forbidding the exportation of arms or munitions of war to Honduras, in accordance with the provisions of a joint resolution of Congress approved January 31, 1922. As this proclamation made no provision for permitting the shipment of arms for commercial purposes, or for other shipments which it might prove advisable to allow to proceed, I wish to suggest that a supplementary proclamation be issued prescribing as an exception to the provisions of the joint resolution above referred to such arms and munitions of war as may from time to time be exported with the consent of this Department. I am transmitting herewith a draft of such a proclamation for your approval.20

A proclamation of this nature will make it possible to grant licenses for the shipment of arms and ammunition for commercial and industrial purposes and also, should it appear advisable, to permit shipments of arms to the provisional government which has recently been established in order to assist the new authorities to maintain order.

I am [etc.]

"See signed text, infra.

10884-Vol II-39- -27

CHARLES E. HUGHES

815.113/77

Proclamation No. 1697, May 15, 1924, Prescribing as an Exception to the Provisions of Proclamation of March 22, 1924, Arms and Munitions Exported with Consent of Secretary of State

BY THE PRESIDENT OF THE UNITED STATES OF AMERICA

A PROCLAMATION

WHEREAS, by a Proclamation of the President issued March 22, 1924, under a Joint Resolution of Congress approved by the President January 31, 1922, it was declared that there existed in Honduras conditions of domestic violence which were or might be promoted by the use of arms or munitions of war procured from the United States; and

Whereas, by the Joint Resolution above mentioned, it thereupon became unlawful to export arms or munitions of war to Honduras except under such limitations and exceptions as the President should prescribe.

Now, therefore, I, Calvin Coolidge, President of the United States of America, do hereby prescribe as such an exception and limitation, such arms and munitions as may from time to time be exported with the consent of the Secretary of State.

IN WITNESS WHEREOF, I have hereunto set my hand and caused the seal of the United States to be affixed.

DONE at the City of Washington this 15th day of May in the year of our Lord one thousand nine hundred and twenty-four [SEAL] and of the Independence of the United States of America the one hundred and forty-eighth.

By the President:

JOSEPH C. GREW

Acting Secretary of State.

CALVIN COOLIDGE

HUNGARY

CONSENT BY THE UNITED STATES THAT THE PRIORITY OF RELIEF BONDS BE SUBORDINATED TO A NEW INTERNATIONAL LOAN TO HUNGARY FOR RECONSTRUCTION

864.51/222

The Hungarian Minister (Széchényi) to the Secretary of State

AIDE MÉMOIRE

The program made by the League of Nations for the financial reconstruction of Hungary expresses the necessity that the priority of the international loan to be granted to Hungary must be assured over all of Hungary's assets and against all existing encumbrances. The Hungarian Government has therefore been invited to take appropriate steps to assure this end as regards governments which hold relief bonds against the Hungarian Government.

In pursuance of previous conversations on this subject, I take the liberty therefore to express the request of my Government that the Government of the United States be good enough to suspend during the period of amortization of the reconstruction loan to be given to Hungary, viz. twenty years, the priority provisions of the relief bonds held by the American Government against Hungary.

My Government has instructed me in particular to assure the American Government that in making this request it does not mean in any way to ask the Government of the United States to yield the privileged position of relief bond holders with respect to priority over reparation payments.

[WASHINGTON,] January 2, 1924.

864.51/222

The Secretary of State to the Hungarian Chargé (Pelényi)

WASHINGTON, February 16, 1924. MY DEAR MR. CHARGÉ D'AFFAIRES: In reply to the Aide Memoire handed to me on January 3rd by Count Széchényi and containing the request of the Hungarian Government that the Government of the United States suspend during the twenty-year period of amortization of the proposed reconstruction loan for Hungary, the priority

enjoyed by the Hungarian Relief Bond held by this Government, I desire to inform you that, while this Government, as in the case of Austria, would be ready to give sympathetic consideration to any appropriate plan for the financial rehabilitation of Hungary, it will be necessary to receive certain additional information and assurances before proceeding further in the matter.

I have noted your Government's statement that in making this request it does not mean in any way to ask the Government of the United States to yield the privileged position of relief bond holders with respect to priority over reparation payments. It appears, however, that the proposed plan for the Hungarian Reconstruction Loan contemplates annual reparations payments by Hungary amounting to not more than ten million gold crowns and commencing after the year 1926, such payments to be made from revenues not specifically assigned to the service of the loan. Were such a plan put into operation and were the holders of Hungarian Relief Bonds to waive the priority enjoyed by such bonds for the full term of the reconstruction loan, it would appear that reparation payments would in fact be accorded a priority over relief bond obligations. This Government could not assent to such an arrangement and would not waive in favor of the proposed reconstruction loan the priority enjoyed by the relief bond which it holds, unless satisfied that its relief bond would at all times be entitled to priority over reparation payments in accordance with the original agreement under which relief advances were made to Hungary.

In this same connection permit me to call to your attention the assurances given in Mr. Daruváry's Note of November 14, 1923,1 to the American Minister at Budapest with reference to the "error in connection with the interest due on the United States Relief Bond" to the effect that the Hungarian Government would inform the Finance Committee of the League of Nations that the proportion of back interest due the United States on its relief bond must be made a first charge against the proceeds of any foreign loan contemplated under the League of Nations' plan. No information has reached this Department that the proposed League of Nations' plan has made definite provision for the payment of this back interest. This Government feels, therefore, that it should be assured that this action which would place it on a basis of equality with other holders of Hungarian relief obligations has been taken and that the charge referred to has been created.

I should also be grateful if you would find it possible to inform me whether any special arrangements with other nations in respect of debts owed to private individuals or state claims arising out of

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