Department desires you to broach this whole matter promptly to the Hellenic Government through informal conversations, unless you feel that the present moment is not favorable, with the object of effecting an early settlement of the three questions listed above. To the extent that you deem wise under the circumstances you may make use of the foregoing in your conversations, refraining, however, from referring to the Guaranty Trust Company by name. You are to telegraph Department should situation arise in which a written communication to the Hellenic Government appears to be desirable in your opinion, or if further instructions are needed. HUGHES 868.51 War Credits/461: Telegram The Minister in Greece (Laughlin) to the Secretary of State ATHENS, December 15, 1924-10 p. m. [Received December 16-12: 32 a. m.] 14 116. Your 88, December 6, 3 p. m., and 93, December 13, 8 p. m.," both confidential. As I was already engaged upon the most pressing item of the former instruction before it reached me I thought it wise to exercise the discretion allowed me and delayed further conversations until today when I communicated to Roussos orally the substance of the whole instruction. He replied that his Government felt the deepest gratitude for the humanitarian disposition you had shown toward Greece but that he was unable to renounce Greek claims to the remainder of the 1918 credits. He did not consider that the Canadian agreement affected these claims as it covered materials purchased in Canada. He said that he wished to go to Washington to discuss the question of the credits and that he would start early in January; meanwhile, he has authorized me to announce to you for publication Greece's intention to take up the regulation of the funding of Greek debts to the United States which he would discuss with you at the same time. [Paraphrase.] He told me that in urging the reopening of the credits he would propose that no money be turned over to Greece, but that entire balance be used to pay for public works that would be executed by American firms; these works would include the reclamation of large areas of land near Saloniki, which must be drained in order to protect refugee colonies and population there from malaria. [End paraphrase.] LAUGHLIN "Latter not printed. 868.51 War Credits/461: Telegram The Secretary of State to the Minister in Greece (Laughlin) WASHINGTON, December 31, 1924—5 p. m. 99. Your 116, December 15, 10 p. m. This Government is unable to perceive that the fact that Greece expended in Canada the proceeds of the loan refunded by the Greek-Canadian Agreement of December, 1923, in any way affects the situation. Under the refunding agreement Greece pledged additional revenues for the service of an external loan without obtaining the consent of the United States, as required by the 1918 agreement. This appears to be a substantial breach of the latter's agreement and even in the absence of other considerations it would seem to follow that the United States is relieved from further obligation in the matter. While this Government would be glad to receive Mr. Roussos or any other representative of the Greek Government duly authorized to negotiate with the World War Foreign Debt Commission for the funding or other settlement of the debt of Greece to the United States, the Department feels that the Greek Government should be aware of the fact that, in the light of this Government's view that the 1918 Loan Agreement has been violated, this Government considers that discussion in Washington with a representative of the Greek Government with respect to the making of further advances under this Agreement would serve no useful purpose. The use of the proceeds of further advances for the purposes indicated by Mr. Roussos instead of those contemplated under the original agreement would not change the position of this Government in the matter. You may convey the foregoing informally and orally to Mr. Roussos so that in connection with his contemplated visit he may be under no misapprehension as to the views of this Government. HUGHES AGREEMENT BETWEEN THE UNITED STATES AND AUSTRIA AND HUNGARY FOR THE ESTABLISHMENT OF A CLAIMS COMMISSION, SIGNED NOVEMBER 26, 1924 463.11 W 891/12 The Secretary of State to the Minister in Austria (Washburn) No. 610 WASHINGTON, February 1, 1924. SIR: As you are aware, the treaty to establish friendly relations between the United States and Austria, signed at Vienna, August 24, 1921,15 and the treaty between the United States and Hungary, signed at Budapest on August 29, 1921,16 contemplate the concluding of agreements for the satisfaction of claims of the United States and its nationals against the Austro-Hungarian Government or its successors. You reported in your telegram, No. 45 of December 14, 1923, 6 P. M.,1 that the Austrian Minister for Foreign Affairs had no objection to the early conclusion of an agreement providing for the settlement of claims. The Hungarian Government has indicated its willingness to negotiate such an agreement. There is enclosed herewith draft of a proposed tripartite agreement 17 in which it is proposed to make what the Government of the United States regards as suitable provisions for the determination of the amounts to be paid by Austria and Hungary in satisfaction of their obligations under the treaties concluded by the United States with Austria on August 24, 1921, and with Hungary on August 29, 1921. The draft agreement, as you will observe, is similar in purport to the agreement concluded August 10, 1922, between the United States and Germany.18 It differs from the agreement with Germany mainly in that it is to be signed by representatives of three governments instead of two, and that it provides that the obligations of Austria and Hungary shall be determined by one commissioner instead of two commissioners and an umpire, as provided by the agreement between the United States and Germany. It is deemed desirable to have any agreement which provides means for determining the obligations of Austria and Hungary under the treaties establishing friendly relations between the United States and those countries, signed by representatives of both Austria and Hungary as well as the United States, for the reason that many claims of American citizens which have been filed and which are in prospect arose out of acts of the former Austro-Hungarian Government for which, as successors to the Austro-Hungarian Government and by applicable treaty provisions, Austria and Hungary assumed responsibility. Both Austria and Hungary are, therefore, interested in any agreement which provides means of determining their respective obligations under the treaties to the United States and its nationals. The Government of the United States considers that the purposes of the agreement could be accomplished with greater expedition and with less expense if provision were made for a single commissioner instead of two commissioners and an umpire for which provision was made in the agreement with Germany. Such a commissioner would perform the judicial functions of an arbitrator in behalf of the several litigants. At the time the agreement between the United States and Germany was signed, the German Chancellor addressed to the American Ambassador at Berlin, a note requesting that the President of the United States designate a suitable American to act as umpire.19 The two governments selected the Honorable William R. Day, formerly an Associate Justice of the United States, as umpire and upon his retirement, the Honorable Edwin B. Parker was selected in the same manner to serve as umpire. The Government of the United States understands that the manner in which Judge Parker has performed the duties of umpire is a source of satisfaction to the Government of Germany no less than to the Government of the United States. It has occurred to me, therefore, that possibly the Government of Austria and the Government of Hungary might agree to the selection of Judge Parker as sole commissioner or arbitrator to determine the obligations of Austria and of Hungary to the United States and its nationals under the treaties establishing friendly relations and under the proposed agreement. You will please communicate with the Foreign Office in the sense of the foregoing, expressing the hope that the plan proposed by the Government of the United States for the determination of the obligations of the Governments of Austria and of Hungary under the treaties establishing friendly relations will commend itself to the Austrian Government. It is desired that you endeavor to obtain a reply from the Austrian Government as promptly as possible, and that you advise the Department by telegraph of developments. It is desired to have the agreement concluded at an early date in order that the appropriation to carry out the provisions of the agreement may be obtained before the adjournment of Congress. It is the view of the Department that the agreement should be signed in Washington where the representatives of the three Governments can be conveniently assembled. Similar instructions have been sent to the Legation at Budapest.2 I am [etc.] For the Secretary of State: WILLIAM PHILLIPS 463.11 W 891/13: Telegram The Minister in Austria (Washburn) to the Secretary of State VIENNA, February 23, 1924-2 p. m. [Received February 24-6:35 p. m.] 7. Department's instruction no. 610, February 1st, received yesterday. Had a conference during the day with Dr. Schüller who is 19 See telegram no. 159, Aug. 7, 1922, from the Ambassador in Germany, Foreign Relations, 1922, vol. II, p. 259. Department's no. 833, Feb. 1, 1924; not printed. charged with negotiations. As a matter of first impressions, I think there will be no objection to tripartite agreement to be signed at Washington and I believe that Judge Parker will be acceptable. Schüller is, however, somewhat concerned over the proposal to make the Austrian Government liable for debts due American citizens by Austrian nationals. He apparently fears that this proposal may bridge over some connection with property of Austrian nationals in the hands of alien property custodian and that foundation is possibly being laid to satisfy judgments out of the proceeds of such property. Since, however, our treaty with Germany contains similar clause, he presumes that provision is working satisfactorily in practice and if Berlin should confirm this, he would personally withdraw all objection to draft as it now stands. I am supplying him with a copy of the draft today and he promises prompt consideration. WASHBURN 463.11 W 891/15: Telegram The Minister in Austria (Washburn) to the Secretary of State VIENNA, April 3, 1924-7 p.m. 17. Department's telegram 15, March 28, 5 p.m.21 As a result of two extended Foreign Office conferences during the last fortnight and note received today, I can definitely state that Austrian Government accepts submitted draft of the proposed claims convention in principle and agrees to request the President of the United States to select a single commissioner. Austrian Government makes the following suggestions: 1. The question against which party or nationals a special claim should be properly made is in each instance a legal question which the agreement to a tripartite convention should not be construed as prejudicing. A future official communication will be made to me upon this point. 2. Proposed claims convention modified the question for mixed arbitral tribunal provided for in the treaty between the United States and Austria August 24, 1921, and article 256 of the Treaty St. Germain, which treaties have force of law here. Austrian Government is without sufficient power to make new convention operative by simple decree but must secure ratification by Parliament and Federal President. German Constitution gives more latitude in this respect. Suggestion is therefore made that article 6 of proposed draft should be amended to read as follows: "The present convention shall be ratified in accordance with the constitutional forms of the high contracting parties and shall take effect immediately on the exchange of ratifications which shall take place as soon as possible at (blank)." 21 |