GERMANY AGREEMENT REGULATING THE DISTRIBUTION OF THE DAWES REPARATION ANNUITIES, CONCLUDED AT THE CONFERENCE OF MINISTERS OF FINANCE, PARIS, JANUARY 14, 19251 462.00 R 296/810: Telegram The Ambassador in France (Herrick) to the Secretary of State PARIS, January 2, 1925-7 p. m. 5. Just received note dated January 2d from Foreign Office, translation of which reads as follows: "The Minister for Foreign Affairs informs the American Embassy that on account of reasons of material organization the first meeting of the Conference of Ministers of Finance will take place on Wednesday, January 7th, instead of the 6th. The Ministry for Foreign Affairs adds, in conformity with the unofficial arrangement agreed upon between the Allied experts in London, [that] the Conference will have the following work: 1. To arrange the repartition of the payments received from Germany since January 1st, 1923, and also under the reserve of the interAllied arrangements that have already been agreed to the repartition of German payments from the date upon which the Agent General for [Reparation] Payments entered upon his duties and during the first year of the execution of the Dawes Plan. 2. To make the adjustments provided for in article I, paragraph [s] 3 to 5 of the arrangement [agreement] of the Ministers of Finance of March 11, 1922,2 and to fully explain a forfeitable sum to cover all the expenses of the Armies of Occupation for the next year. 3. To examine all other questions of repartition pending between the Allied Governments." Logan informed. Repeated to London. HERRICK 'For previous correspondence concerning German reparations, see Foreign Relations, 1924, vol. II, pp. 1 ff., and pp. 135 ff. British and Foreign State Papers, 1922, vol. cxvi, p. 612. James A. Logan, Jr., American unofficial representative on the Reparation Commission. 133 462.00 R 296/810: Telegram The Secretary of State to the Ambassador in France (Herrick) WASHINGTON, January 3, 1924 [1925]—8 p. m. 10. Your 5, January 2, 7 p. m., and L-299, January 3, noon.* Please reply as follows to French note: The Government of the United States has received the note of the French Minister for Foreign Affairs, dated January 2, 1925, relative to the forthcoming meeting of Finance Ministers and sees no objection to the proposed postponement of the first meeting from Tuesday January 6th to Wednesday January 7th, 1925. The Government of the United States will be represented at that meeting for the purpose of negotiating the necessary arrangements for its participation on account of army costs and other claims of the United States in the annuities to be paid by Germany under the terms of the Dawes plan." HUGHES 462.00 R 296/832: Telegram The Ambassador in France (Herrick) to the Secretary of State PARIS, January 7, 1925-7 p. m. 19. L-302 [from Logan]. 1. Conference convened 3 p. m. today and was confined to formalities with emphasis on strict limitation scope of deliberation to terms of reference decided in London. It therefore follows no discussion whatsoever inter-Allied debt. Cable full report tomorrow. 8 9 2. Reference paragraph 2 my L-297 and Department's L-184.7 Churchill asked me meet him British Embassy immediately after Conference which I did in agreement with Herrick and Kellogg. Churchill expressed desire to reach settlement with us and willing to accept my memorandum to Leith-Ross dated January 3d as basis of settlement except that he reserved my figures of 65 million on account of Army costs and 60 million on account of our other claims for discussion and adjustment between Niemeyer 10 and myself. Stated specifically that his agreement to our participation on the 'Latter not printed. "By telegram No. 5, Jan. 3, noon, the Ambassador had been instructed to inform the French Government that he, with Mr. Kellogg and Mr. Logan, would represent the United States at the Conference of Finance Ministers (file No. 462.00 R 296/811). Telegram in two sections. Neither printed. Winston Churchill, Chancellor of the Exchequer and head of the British delegation at the Conference. Foreign Relations, 1924, vol. п, p. 132. 10 Sir Otto Ernst Niemeyer, member of the British delegation at the Conference. basis of the Leith-Ross memorandum was to be considered as "all inclusive" of all our various claims and that if Niemeyer and myself could agree on figures he would not raise question regarding our position on enemy shipping, pre-war debts, pre-war damages, etc. Churchill stated this agreement his part subject confirmation by British Cabinet. I said any agreement effected by me subject Department's approval. Churchill intimated that Cabinet would support him. Niemeyer and myself meet tonight for the purpose of discussing and if possible reaching agreement on figures. Anticipate no special difficulties, as Churchill, in Niemeyer's and my presence, stated that British willing to accept figures for our participation covering both our Army costs and our other claims provided actual annual burden was not in excess of the annual burden incumbent upon the Allies under the Wadsworth Agreement." At the conclusion of our conversation, Churchill with my concurrence issued following statement to press: "Mr. Logan, one of American representatives at the Conference, and Mr. Churchill, Chancellor of the Exchequer, had a friendly personal talk after the plenary session of the Conference on the particular point outstanding between Great Britain and the United States. While no decision could be reached on actual details, there was a general agreement that the matter should be further explored with good hopes of reaching a solution equitable to Great Britain, the United States and all the other parties concerned. The prospects of an early settlement must therefore be considered favorable. If an agreement should be reached the general work of the conference would be facilitated and expedited." Logan 462.00 R 296/834: Telegram The Ambassador in France (Herrick) to the Secretary of State [Paraphrase] PARIS, January 9, 1925-noon. [Received January 9-8:40 a. m.] 12 21. L-304 from Logan. Churchill disclosed in conversation last night that he is willing to recommend a settlement on the basis of 55,000,000 gold marks cash priority per annum to commence September 1, 1926, on our Army costs account, plus 2 percent, or approximately 40,000,000 marks minimum in normal year, participation in 11 Army Costs Agreement of May 25, 1923; Foreign Relations, 1923, vol. II, p. 180. 13 The first paragraph of this telegram has been paraphrased from a corrected copy received Jan. 9, 1: 10 p. m., as telegram No. L-305 (file No. 462.00 R 296/837). "reparations account". This offer privately made was in nature of compromise. The formal British offer remains 50,000,000 cash priority plus 2 percent on claims. He declined to go any further on a compromise but agreed to submit any proposals to Cabinet. I made the following alternative proposals, all, of course, subject to the Department's approval: (1) 55,000,000 gold marks cash priority, and 24 percent on "reparations", that is, 45,000,000 in normal year; (2) 60,000,000 cash priority, and 2 percent, or 40,000,000 gold marks; and (3) 50,000,000 cash priority and 22 percent, or 50,000,000 on "reparations". That is to say, I stood on the basis of 100,000,000 in a normal year, with, however, Army costs starting September 1, 1926, and "reparation" starting September 1, 1924. It will be noted that all that separates the British from our tentative proposals is 5,000,000 gold marks. It is probable that under these proposals we would be forced to waive interest on Army costs arrears. We are inclined to feel that offer made by Churchill is about as far as we can get him to go, though we may be able to obtain advance to 100,000,000 basis. If impossible to do better may we settle on either the 95 or the preferable 100 basis? Logan. HERRICK 462,00 R 296/834: Telegram The Secretary of State to the Ambassador in France (Herrick) [Paraphrase] WASHINGTON, January 9, 1925-noon. 17. L-189 for Logan. Your L-304, January 9, noon. The Department has noted that you have indicated a willingness to accept the minimum of 100,000,000 gold marks, but that Army costs would commence on September 1, 1926, and that other payments would commence on September 1, 1924. In view of the willingness of this Government to postpone payments for past Army costs, notwithstanding that other Governments have been substantially paid, and in view of the further postponement of Army cost priorities to September 1, 1926, because of the provisions of the Dawes Plan in regard to expenditure of payments in these years within Germany, the Department believes that you should insist on the minimum of 100,000,000 gold marks in normal year, of which 50,000,000 at least and preferably more would consist of priority payments on Army costs. If percentage is accepted for other claims, then priorities should be so defined as to yield to this Government the estimated minimum, or, if possible, a flat sum should be stipulated. It appears to us to be inequitable, considering the delay in reimbursement of Army costs, that interest on arrears should be waived. This matter should not, however, present great practical difficulty, as it is difficult to believe that the relatively small payments necessary to cover amount due us will not in fact be made. Of course, it is understood, as pointed out in your memorandum to Leith-Ross,13 that balances which have already accrued to our Army costs account through payments coming due before the going into effect of the Dawes report, are not to be considered as annuities, but are to be credited to capital amount of our Army costs claims. HUGHES 462.00 R 296/837: Telegram The Secretary of State to the Ambassador in France (Herrick) [Paraphrase] WASHINGTON, January 9, 1925—3 p. m. 18. L-190 for Logan. Department's L-189, January 9, noon. In view of Churchill's willingness to settle on basis of 55,000,000 gold marks cash priority to commence September 1, 1926, for our Army costs account, you may accept this provided that there is added suitable percentage participation in "reparations account" that will yield minimum of 45,000,000 gold marks, making a minimum total of 100,000,000 gold marks during a normal year, and proportionate payments prior thereto. HUGHES 462.00 R 296/840: Telegram The Ambassador in France (Herrick) to the Secretary of State PARIS, January 10, 1925-5 p. m. [Received January 10-1:51 p. m.] 28. L-307 [from Herrick, Kellogg, Logan]. We have just finished conferences with Churchill. We called on Churchill this afternoon for the purpose of discussing claims position. We finally agreed on following tentative proposal: "It is recommend [ed] that the United States Government should receive: (1) 55,000,000 gold marks cash priority for 172 years [commencing?] September 1, 1926; (2) two and a fourth [percent?] of reparation yield of Dawes annuities from September 1, 1924, provided that the annuity resulting from this percentage shall not in any year exceed 45[,000,000] gold marks. Subject to above, the United States Government (a) to waive any claim under the existing Wadsworth Agreement on the cash receipts from the Ruhr be13 Foreign Relations, 1924, vol. I, p. 132. |