her disproportionate share of the conditional payment. Young does not feel that anything further can be accomplished on this point at present conference.

Our position as set forth in your No. 165, May 19, is now matter of record with the experts of the creditor groups, and, if we so desire, we can insist upon participating in the unconditional payments when the conference of the governments is held to put the new plan into effect.

ARMOUR

[A conference was held at The Hague, August 6-31, 1929, for the purpose of bringing into effect the plan offered by the Committee of Experts.-Great Britain, Cmd. 3392, Miscellaneous No. 5 (1929): Protocol With Annexes Approved at the Plenary Session of The Hague Conference, August 31, 1929.

The Government of the United States was represented at the Conference by Mr. Edwin C. Wilson in the capacity of observer and with specifically limited powers.]

NEGOTIATIONS FOR AN AGREEMENT TO PROVIDE FOR PAYMENT OF AMERICAN ARMY OF OCCUPATION COSTS AND MIXED CLAIMS COMMISSION AWARDS

462.00R294/674a: Telegram

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The Secretary of State to the Ambassador in Germany (Schurman) WASHINGTON, September 14, 1929—2 p. m. 64. The United States, under the Paris agreement of January 14, 1925, to which Germany is not a party but of which it has cognizance, is receiving from Germany 55,000,000 gold marks a year on account of the costs of the American Army of Occupation and 45,000,000 gold marks a year on account of the awards adjudicated and to be adjudicated by the Mixed Claims Commission constituted under the agreement of August 10, 1922.59 As of September 1, 1929, the unliquidated balance owed by Germany on account of army costs was $193,936,765.20 and on account of Mixed Claims Awards approximately $251,300,000, interest included.

In view of the schedule of payments recommended by the Committee of Experts appointed by Germany and the Reparation Commission to submit proposals for a final and definitive settlement of Germany's

obligations, the President is prepared to recommend to the Congress that the United States accept in full discharge of Germany's obligations in the aforementioned categories the annuities allotted the United States in the report of that Committee. To this end it is desired to ascertain whether the German Government will agree to pay directly to the United States the said annuities over the period of years provided for in the Experts' report, with a provision, on the lines of postponement provisos in other debt settlements negotiated by the United States, permitting postponement of payments at the debtor's option for a period of time not to exceed two years (viz “Provided, however, that Germany may at its option, upon not less than ninety days advance notice to the United States, postpone any payment to a time not more than two years distant from its due date, but only on condition that in case Germany shall at any time exercise this option as to any payment, the payment falling due on the corresponding date in the next succeeding year cannot be postponed to any date more than one year distant from the date it becomes due unless and until the payment previously postponed shall actually have been made, and the payment falling due on the corresponding date in the second succeeding year cannot be postponed at all unless and until the payment of principal due two years previous thereto shall actually have been made.").

The President is not prepared to relinquish the rights and priorities the United States enjoys under the Paris agreement of January 14, 1925 until authorization of Congress has been obtained. It is desired at the proper time to lay the matter before Congress in the form of an agreement with Germany, which shall have been recognized in such appropriate form as may prove convenient by the other creditor powers signatory to the agreement of January 14, 1925.

You are requested to communicate the foregoing orally to the appropriate German authorities and report reaction of the German Government. While no reluctance on its part is anticipated, you may find it appropriate to refer to the proposal as a new exemplification of the consistently liberal attitude which the United States has displayed toward Germany, as in renouncing its right to general reparations, returning private German property sequestered during the war, and subjecting the claims of American citizens against Germany to adjudication by a mixed tribunal constituted under an agreement with Germany. The position of this Government is also influenced by the wish to submit to Congress a simple question which will not draw the whole Young Plan into controversy and delay.

'Report of the Committee of Experts on Reparations, June 7, 1929, commonly referred to as "The Young Plan"; Great Britain, Cmd. 3343 (1929).

You will make it clear that besides the Young Plan annuities payable after September 1, 1929, the United States expects that payment of the 100,000,000 marks due under the fifth Dawes annuity will be completed.

You may further add that pending the submission of the new agreement to the Congress and the obtaining of the necessary authority from the Congress, this Government is prepared to accept payments based on the new schedule, reserving, however, all its rights under the Treaty of Berlin 61 and under the agreement of January 14, 1925, and with the understanding that the existing methods of payment will remain undisturbed.

Mail cipher copy to Paris for Wilson's 62 information. Keep him fully informed.

STIMSON

462.00R294/682: Telegram

The Ambassador in Germany (Schurman) to the Secretary of State

BERLIN, October 26, 1929-11 a. m. [Received October 26-10:47 a. m.]

201. [Paraphrase.] Following is translation of Foreign Office aidemémoire received yesterday: [End paraphrase.]

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"The German Government is of the opinion that, through the exchange of views up to the present and the aide-mémoire of the American Ambassador of October 24, 1929, the basis for entering upon material negotiations regarding a German-American debt agreement has been created. It has noted with satisfaction that the American Government will hand to the German Government a written draft of the agreement and that an American expert will shortly arrive in Berlin for the purpose of further discussion of the matter in question. The German Government is prepared to take up these negotiations immediately. Ministerial Direktor Ritter of the Foreign Office has been commissioned to conduct the negotiations. In these negotiations the German Government would again discuss the question dealt with in paragraph 2 of the aide-mémoire of October 24 regarding_the extent to which some regulations corresponding to the Young Plan are to be made the subject of the agreement itself or of a subsequent supplementary German-American accord.

The German Government emphasizes particularly the urgency of the matter. A consequence of the conclusion of the German-American agreement is that the American annuities must be taken out of the Young Plan. As the Committee of Jurists which was appointed

61 Treaty between the United States and Germany, signed August 25, 1921; Foreign Relations, 1921, vol. II, p. 29.

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Edwin C. Wilson, First Secretary of Embassy in France, and acting American observer on the Reparation Commission.

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Presumably an aide-mémoire recapitulating the oral discussions based upon the Department's instruction, supra.

by The Hague Conference and [by whom the question will also be taken up] will probably meet about November 10, it would be most desirable if a German-American accord could be reached by that date.

In view of the fact that, contrary to the wish of the two Governments, the German-American negotiations have already been made public, the German Government deems it necessary to acquaint the other creditor Governments, without delay, with the fact of the negotiations. The German Government attaches particular importance to having this done by the German and the American Governments jointly and suggests for this reason that their respective Ministers in Brussels be instructed immediately by telegraph to notify M. Jaspar, president of The Hague Conference, accordingly. The German Government will instruct its Minister in Brussels to get into touch with his American colleague prior to this step. The various interested Governments themselves could then be advised when an accord has been reached regarding the text of the agreement."

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SCHURMAN

462.00R294/682: Telegram

The Secretary of State to the Ambassador in Germany (Schurman) [Paraphrase]

WASHINGTON, October 26, 1929-5 p. m.

78. Yesterday the New York Herald Tribune carried an article on our negotiations with Germany. In order to avoid misunderstanding, the Secretary stated at his press conference that he would make an announcement, in view of the statements printed, although Department had not intended to do so. He then recalled that a meeting had been held at the White House last spring, at which time question of accepting certain reductions which the experts had proposed was discussed by the President and the Secretary of State with the leaders of the House and the Senate. He stated that the negotiations with the German Government are in accord with what Department understands to have been general sentiment of that conference, and that no reason exists for secrecy regarding them. One correspondent inquired whether the United States is not in this way lined up with the Young Plan; the Secretary stated in reply that this agreement is being negotiated separately with the Reich Government. Several specific questions were asked by the correspondents relative to what was to be included in the agreement, but the Secretary would not discuss details.

The Department also informed British Chargé and French and Italian Ambassadors about what was being done. Assistant Secre

"See Great Britain, Cmd. 3392 (1929): Protocol... Approved at the Plenary Session of The Hague Conference, August 31, 1929, p. 3.

"Henri Jaspar, Belgian Prime Minister.

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tary Castle had already told Dr. Kiep 6 that if German Government desired, there was no reason why it should not inform the interested Ambassadors.

Reference your No. 201, October 26, 11 a. m. Under the circumstances, the United States obviously would have no objection should German Minister at Brussels wish to discuss matter with Jaspar. There does not appear to be any reason, however, why the American Ambassador should be associated with him in this action. You will please keep Wilson fully informed.

STIMSON

462.00R294/683f: Telegram

The Secretary of State to the Chargé in France (Armour) WASHINGTON, November 2, 1929–5 p. m. 359. Reparation 98. Repeat following to Berlin as Department's 80.

"Your 201, October 26, 11 a. m. Department is instructing Mr. E. C. Wilson, Acting American Observer with the Reparation Commission, to proceed to Berlin to present draft agreement and to discuss it with representative designated by the German Government. In accordance with American debt settlement precedents, proposal contemplates an agreement which will be signed at Washington by the Secretary of the Treasury after it has been submitted to Congress and Congress has authorized signature.

Please make appropriate arrangements and extend Mr. Wilson all possible assistance and facilities.'

STIMSON

462.00R294/695: Telegram

The Ambassador in Germany (Schurman) to the Secretary of State

209. From Wilson.

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BERLIN, November 7, 1929-5 p. m. [Received November 7-3:55 p. m.]

Had first meeting this morning with Ritter and presented draft agreement. It will require a day or so for the Government services to examine the document, and we shall then begin detailed discussion. He volunteered the statement, however, that he thought we should have no difficulty except in connection with a postponement, or rather safeguard, clause. He referred to the provisions of the Young Plan regarding the special advisory committee as constituting a "revision ነ clause" and said German opinion attached great importance to this and he hoped similar provisions could be embodied in our agreement.