870.811/49

The Acting Secretary of State to the Swiss Chargé ( Jenny )

Sir: I have the honor to acknowledge the receipt of your note of August 10, 1920, with which was transmitted a transcript of a cable from the Swiss Foreign Office concerning a protest of the German Government against the nomination by the United States of Mr. Hines as arbitrator in accordance with Article 339 of the Treaty of Peace with Germany. Your note also contained the offer to transmit to the Swiss Foreign Office for communication to the German Government the reply of this Government in the premises.

I therefore avail myself of your offer and request that you kindly transmit to the Swiss Foreign Office for communication to the German Government the reply herewith enclosed.

Accept [etc.]

Norman H. Davis
[Enclosure]

The Department of State to the Swiss Legation

The Government of the United States is surprised to have been made the recipient of a protest on the part of the German Government against the appointment of Mr. Walker Hines as arbitrator in accordance with Article 339 of the Treaty of Peace with Germany. Since the appointment of Mr. Hines was made at the request of the Allied Powers, it appears that any observations on the part of the German Government regarding the appointment should have been addressed to these Powers. The Government of the United States is nevertheless willing to state its position.

Under Article 339 of the Treaty of Peace with Germany, the Government of the United States was given the power to appoint an arbitrator on its own initiative and no request from the Allied or German Governments was necessary to validate such an appointment. Owing, however, to special circumstances, it appeared advisable to this Government not to exercise its prerogative under the Treaty and consequently no action was taken until the Allied Governments formally requested that the Government of the United States should immediately nominate the arbitrator or arbitrators [Page 271] independently of the position of the United States as a signatory of the Treaty of Peace. On legal and practical grounds there appears no basis for the protest of the German Government. The Government of the United States cannot therefore consider this protest which it regards as indicating on the part of the German Government not only a lack of appreciation of the course of action followed by the United States, but if persisted in, also a lack of desire to cooperate in the stabilization of present conditions throughout Europe on a peaceful basis.