462.00R29/101: Telegram

The Ambassador in France (Wallace) to the Acting Secretary of State

665. R-402 for Davis.

At meeting of O[rganization] C[ommittee,] R[eparation] C[ommission,] March 8th, 1920, decided send Austrian Government following letter:

“The Organization Committee of the Reparation Commission recognizes that to enable the Government of the Austrian Republic the use of [to make?] the reparation payments provided for by article 181 of the treaty of Saint Germain, the Republic of Austria must be permitted to obtain the food and raw materials necessary for the reestablishment of its economic life. To accomplish this object it is essential that private initiative be encouraged and the fullest opportunity given for the resumption of private business under normal conditions. With these considerations in view the Organization Committee of the Reparation Commission gives notice to the Austrian Government and to all concerned as follows:

1.
No objection will be made by the Organization Committee of the Reparation Commission to the use by the Austrian Government for the purpose of the acquisition of essential food and raw materials of securities that have not already been sequestrated, except those covered by article[s] of the treaty other than article 181, owned by the Austrian Government or by Austrian nationals and which represent interests in undertakings situated in neutral countries.
2.
Except to such extent as may be specifically provided by other articles of said treaty and especially by annexes II, III, IV, V and VI of part VIII, deliveries will not be required on account of required payments under article 181 of the Treaty of Saint Germain of privately owned securities representing interests in undertakings with[in] boundaries of the Austrian Republic or of commodities and property other than securities now or hereafter privately owned and located in Austria. It is, however, to be clearly understood that the Austrian Republic may always exercise in regard to the said private property, the powers conferred under paragraph 19 of annex II.

The Committee calls upon the Austrian Government immediately to take all measures necessary to acquire from its nationals all securities which represent interests in undertakings situated in neutral countries and to prevent any alienation of these securities by their owners. The Committee also calls upon the Austrian Government to inform it, as soon as possible, of the measures so taken and to transmit from time to time (a) lists of such securities thus acquired as well as those now owned by the Austrian Government and (b) statements showing the proceeds resulting from the sale of such securities and the particulars of the purchase of food and raw materials by the use of such proceeds. The Committee reminds the Austrian Government that, as stated in its letter of February 14, to the extent that such neutral securities are released as security for the [Page 264] advances heretofore made to the Austrian Government for the purchase of food, the disposition of the proceeds thereof for the purchase of food and raw material is subject to the approval of the Vienna sub-committee. It is self evident that this letter leaves intact all obligations undertaken by Austria under other articles of the treaty and especially under articles 211 and 249.”

  • Rathbone
  • Wallace