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FRANCE

PRECAUTIONS BY THE UNITED STATES FOR THE SAFETY OF AMERICANS DURING THE SYRIAN INSURRECTION-Continued

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Information that the Department has no intention of withdrawing the destroyers.

Nov. 23 From the Consul at Beirut (tel.)

124

Request for discretionary authority to dispense with destroyers, which possibly could be done about December 1 when the new High Commissioner is due to arrive.

Nov. 24

To the Consul at Beirut (tel.)

124

Refusal to give discretionary power until reports as to adequacy of French measures to protect American lives and property are more reassuring.

Nov. 28

125

From the Consul at Beirut (tel.)

Telegram from the consul at Aleppo, November 26 (text printed), reporting increased disturbances in the interior. Recommendation that the presence of the destroyers be continued until the situation becomes more clarified.

Dec. 4 From the Consul at Beirut (tel.)

Dec. 5

Report of the arrival of the new High Commissioner and of sufficient reinforcements to assure public safety in coast regions. Recommendation that the destroyers be withdrawn. To the Consul at Beirut (tel.)

Information of arrangements for the withdrawal of the destroyers to Alexandria until December 15. Instructions to telegraph whether the destroyers should remain near Beirut for a longer time.

(Footnote: Information that the destroyers were retained within a short cruising distance of Beirut until December 28.)

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PLACING OF AMERICAN RESIDENTS OF FRANCE ON AN EQUALITY WITH FRENCH CITIZENS WITH RESPECT TO INCOME TAX EXEMPTIONS

1924 Oct. 17 (4502)

Nov. 10 (1190)

From the Chargé in France

Belief that, except for article 11 of the treaty of 1800, there is no provision in treaties between the United States and France under which U. S. citizens might claim right under article 44 of the French law of March 22, 1924, to reductions in income taxes accorded to citizens of countries having treaties of reciprocity with France. Request for instructions.

To the Chargé in France

Information that there is no treaty in force between the United States and France bearing on the matter, the treaty of 1800 having expired in 1809. Instructions to call attention to U. S. Revenue Act of 1924 under which aliens resident in the United States are assessed income taxes at the same rate and with the same exemptions as U. S. citizens; and to express the hope that U. S. citizens resident in France will be accorded equality with French citizens with respect to income tax rates and exemptions.

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FRANCE

PLACING OF AMERICAN RESIDENTS OF FRANCE ON AN EQUALITY WITH FRENCH CITIZENS WITH RESPECT TO INCOME TAX EXEMPTIONS-Continued

Date and

number

1925

Subject

Page

Jan. 7 (4737)

From the Ambassador in France

May 26 (293)

June 6 (1535)

June 22 (5318)

Nov. 30 (5778)

Foreign Office note, December 30, 1924, stating inability to grant request in absence of conventional agreements and intimating that a convention on the subject might be made. Request for instructions whether to follow up the French intimation.

From the Ambassador in France (tel.)

Report on receipt of various complaints from U. S. citizens because, in certain instances, they have to pay higher income taxes than French citizens. Request for instructions.

To the Ambassador in France

Information that, in the absence of applicable treaty provisions, the United States cannot demand the right of U. S. citizens to reciprocal income tax exemptions and that it is inadvisable to negotiate a treaty on the subject at the present time. Instructions to report the difference between taxes assessed against U. S. citizens and French citizens and whether U. S. citizens receive less favorable treatment than nationals of any other country.

From the Ambassador in France

Report on deductions allowed to French citizens and to citizens of countries having treaties of reciprocity with France. Advice that U. S. citizens receive no less favorable treatment than nationals of any other country, with the exception of those having treaties of reciprocity with France.

From the Ambassador in France

Foreign Office note, November 24 (text printed), placing U. S. citizens resident in France on equality with French citizens with respect to income tax exemptions, under a broad interpretation of the consular convention of 1853.

GERMANY

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131

AGREEMENT REGULATING THE DISTRIBUTION OF THE DAWES REPARATION ANNUITIES, CONcluded at the CONFERENCE OF MINISTERS OF FINANCE, Paris, JANUARY 14, 1925

1925 Jan. 2 (5)

Jan. 3 (10)

From the Ambassador in France (tel.)

Foreign Office note, January 2 (text printed), suggesting the postponement of the Conference of Finance Ministers from January 6 to January 7, and outlining the work of the conference.

To the Ambassador in France (tel.)

Note for Foreign Office (text printed) agreeing to the postponement of the conference for one day; and stating the purpose for which the United States will be represented at the conference.

(Footnote: Information that on January 3 Herrick, Kellogg, and Logan were instructed to represent the United States at the conference.)

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134

GERMANY

AGREEMENT Regulating THE DISTRIBUTION OF THE DAWES REPARATION ANNUITIES, CONCLUDED AT THE CONFERENCE OF MINISTERS OF FINANCE, Paris, JANUARY 14, 1925-Continued

Date and

number

Subject

Page

1925 Jan. 7 (19)

Jan. 9 (21)

Jan. 9 (17)

Jan. 9 (18)

Jan. 10 (28)

Jan. 10 (26)

Jan. 11 (31)

Jan. 13

From the Ambassador in France (tel.)

From Logan: Report on the convening of the conference; and on a conversation with Churchill, the head of the British delegation, who agreed to U. S. participation in reparations on basis of U. S. memorandum of January 3, but reserved for discussion and adjustment the U. S. figures of 65 million gold marks on account of Army costs and 60 million on account of other claims. Statement issued to the press by Churchill (text printed).

From the Ambassador in France (tel.)

From Logan: Report on Churchill's compromise offer of 95 million and Logan's alternative proposals for 100 million. Request for authorization to settle on either 95 or 100 million basis.

To the Ambassador in France (tel.)

For Logan: Instructions to insist upon a minimum of 100 million in normal year, of which 50 million at least and preferably more would consist of priority payments on Army costs.

To the Ambassador in France (tel.)

For Logan: Authorization to accept Churchill's offer of 55 million cash priority for Army costs to begin September 1, 1926, provided there is suitable participation to yield 45 million, making a minimum total of 100 million during normal year, and proportionate payment prior thereto.

From the Ambassador in France (tel.)

From Herrick, Kellogg, and Logan: Report on tentative agreement with Churchill on 100 million basis. Inquiry concerning balance on deposit in Federal Reserve Bank in blocked account.

To the Ambassador in France (tel.)

For Herrick, Kellogg, and Logan: Department's understanding and approval of agreement reached with Churchill, except the Department would prefer interest on arrears but would not insist upon it; congratulations upon successful outcome of negotiations.

From the Ambassador in France (tel.)

From Logan: Inquiry whether the agreement to be con-
cluded at the conference can be given effect by Executive
approval; also whether there should be one inclusive agreement
or whether the U. S. settlement should be in a separate docu-
ment.

From the Ambassador in Great Britain, Temporarily in Paris
(tel.)

Opinion that no one but Logan need sign the agreement
which would probably be concluded that night, though its
signature might be delayed so the smaller powers may examine
the instrument. Inquiry whether the Ambassador should
remain at Paris until matter is fully settled.

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GERMANY

AGREEMENT REGULATING THE DISTRIBUTION OF THE DAWES REPARATION ANNUITIES, CONCLUDED AT THE CONFERENCE OF MINISTERS OF FINANCE, PAris, JANUARY 14, 1925-Continued

Date and number

Subject

Page

1925 Jan. 13 (35)

From the Ambassador in France (tel.)

140

From Herrick, Kellogg, and Logan: Draft of the section of the conference report dealing with the U. S. share in the Dawes annuities (text printed).

142

Jan. 13 (30)

Jan. 13 (31)

Jan. 13 (33)

Jan. 14 (41)

Jan. 14 (42)

Jan. 14 (43)

Jan. 14

To the Ambassador in France (tel.)

For Herrick, Kellogg, and Logan: Instructions to endeavor to eliminate from the draft the limitation of U. S. claims to $350,000,000, as this amount was merely an estimate of the probable awards.

To the Ambassador in France (tel.)

For Herrick, Kellogg, and Logan: Understanding that waiver with respect to reparation payments of ex-enemy powers other than Germany applies to waiver with respect to Army costs, it being essential that the United States should not be precluded from recovering in due course the other U. S. claims from ex-enemy states.

To the Ambassador in France (tel.)

For Herrick, Kellogg, and Logan: View that the $350,000,000 limitation on U. S. claims would constitute a modification of U. S. treaty rights and that therefore more than Executive approval would be required to give effect to the agreement. Preference for one inclusive agreement. Instructions to sign agreement with a reservation (text printed) with respect to questions with which the United States is not concerned. Authorization to use own discretion regarding question whether all three American representatives should sign the agreement.

From the Ambassador in France (tel.)

From Herrick, Kellogg, and Logan: Report that the $350,000,000 limitation on U. S. claims has been eliminated from the final agreement.

From the Ambassador in France (tel.)

From Herrick, Kellogg, and Logan: Reasons why the U. S. representatives signed the agreement without making the reservation desired by the Department.

From the Ambassador in France (tel.)

From Herrick, Kellogg, and Logan: Assurance that the only
waiver made is waiver under the Wadsworth Agreement for
claims such as the Bulgarian moneys and that U. S. rights
under treaties with Austria, Hungary, and Turkey have not
been affected.

Final Protocol of the Conference and Agreement
Regarding the distribution of the Dawes annuities.

142

143

144

144

145

145

Jan. 15 (47)

To the Ambassador in France (tel.)

162

For Logan: Instructions to have the National Bank of Belgium wire the Federal Reserve Bank of New York to release blocked account.

Jan. 19 (70)

From the Ambassador in France (tel.)

162

From Logan: Report that the bank cabled release of blocked account on January 16.

GERMANY

AGREEMENT REGULATING THE DISTRIBUTION OF THE DAWES REPARATION ANNUITIES, CONCLUDED AT THE CONFERENCE OF MINISTERS OF FINANCE, PARIS, JANUARY 14, 1925-Continued

Date and number

1925

Subject

Page

Sept. 21

Agreement Regulating the Amounts To Be Allocated Out of the
Second Dawes Annuity

163

For the armies of occupation in the Rhineland, the InterAllied Rhineland High Commission, and the Inter-Allied Military Commission of Control in Germany.

RETURN OF THE D. A. P. G. TANKER CASE TO THE ARBITRATORS for a MAJORITY DECISION

1925 Jan. 28 (49)

Feb. 26 (1084)

Mar. 31 (141)

July 2

July 25

Sept. 23

To the Ambassador in Great Britain (tel.)

Instructions to continue to assist the Standard Oil Co. in its endeavor to persuade the British Government to accept the compromise on the D. A. P. G. tanker case suggested by the arbitrators in preference to calling in a third arbitrator.

From the Chargé in Great Britain

British note, February 25 (text printed), refusing to accept the compromise suggested by the arbitrators as an alternative to calling in a third arbitrator; and indicating that the arbitration should be allowed to take its course.

To the Ambassador in France (tel.)

For Hill: Department's view that the tanker case should be
returned to the arbitrators for a majority decision; Standard
Oil Co.'s accord with this view provided the third arbitrator is
Dr. Sjoeborg, as already agreed upon. Instructions in the
event that Sjoeborg is unable to serve.

To the Associate General Counsel of the Standard Oil Company
Department's refusal to designate counsel to serve with
Standard Oil Co.'s counsel in presenting the case to the third
arbitrator. Assurance that Hill will render all proper assist-
ance short of acting as counsel.

To the Unofficial Representative on the Reparation Commission
Instructions as to extent to which assistance may be rendered
in the presentation of the tanker case to the tribunal when the
third arbitrator is called in.

To the Unofficial Representative on the Reparation Commission
Concurrence in opinion that the third arbitrator is a member
of the tribunal and not an umpire, and that, therefore, addi-
tional briefs and oral arguments may be presented before the
tribunal. Instructions to make no suggestions concerning the
employment of counsel by the Standard Oil Co., as the De-
partment does not desire to assume any responsibility for the
presentation of the case before the tribunal.

165

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171

POLICY OF THE DEPARTMENT OF STATE REGARDING AMERICAN BANKERS' LOANS TO GERMAN STATES AND MUNICIPALITIES

1925

Sept. 15 (295)

From the Ambassador in Germany

172

Opinion that the placing of any further German municipal loans in the United States should be discouraged.

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