462.00 R 29/255: Telegram

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

1343. B–136. For Davis, reference B–40.

1st. Have, after considerable discussion of details, arranged finances as follows:

Commission perfectly willing cooperate in meeting our wishes but slight adjustment plan made to conform to organization scheme of Commission. Understanding perfectly clear and so expressed by members Commission when decision taken that all payments based solely on theory that Commission merely paying compensation for outside assistance rendered to Commission in its work. Delegation retains absolute unofficial character unchanged. Analogous principle is applied by Commission in other cases and not confined to us.

2d. We are still negotiating only for quarters actually occupied, but for present letting whole building with privilege terminating tenancy on one month’s notice. Have arranged with Commission pay actual expenses rent, heat, light, janitor, etc., not exceeding 30,000 francs month. Our expense will vary but expected will average less than this amount.

3d. Inter Allied employees, as defined under Commission scheme organization, transferred to pay roll Commission. Have arranged with Commission for meeting expenses national employees whose work is connected with affairs of Commission by payment to me for which vouchers to be furnished.

4th. This leaves to be taken care of from the Department’s funds only salary and expenses delegate; allowance to Major Smith, Army, [Page 352] who is unofficial representative on Austrian Section, now $15 day which I propose to raise to $20 day in view of situation in Austria; Captain Madison, Navy, to whom Ave now make no allowance but who ought to have allowance of about $10 a day; also few incidental expenses only considerable one being car care and repair, the gasoline, total these incidentals about $1200 a month, liberal estimate. Total monthly expenses including increase to Smith and Madison, not including my own salary and expenses, about $2500. Advise me on foregoing recommendations as to Smith and Madison.

5th. Logan, as previously explained, is taken care of otherwise. Have not kept actual account my own expenses monthly. Find have spent since arrival three months about $3,500, should call accessories to living expenses and special entertainment, reasonable average about $1,000 monthly, rise in valuation of francs makes amount more than inaccurate. I do not know what principle you want to follow on expenses and shall spend same amount, whatever your allowance. Consult Rathbone on this and decide whatever you like. I do not want to embarrass you and you cannot embarrass me.

6th. In last cable this subject B–6459 I said Army and Navy men could not accept anything but expense allowances. This is correct principle but advised by Army expert that legal distinction is between salary and any allowance which is not strictly salary. Amount of allowance makes no legal difference, being wholly in the discretion of party making payment in the service of Reparation Commission. Commission has agreed to allowance to these men working in an international capacity as follows:

Per diem, 70 gold marks, percentage allowances also in accordance regular custom to other similar employees Commission. The total provided by Commission for these men is of course much less than paid by Commission to similar men from other delegations but as the Commission allowances result in their receiving in addition to Army and Navy salaries more than their present actual extra expenses thought perhaps I should call your attention to matter to make sure no objection. I see no objection and have no question as to fact, remuneration moderate and desirable from my own point of view.

7. Thought best not to go back of actual date origin of Commission but have accepted reimbursement our expenses on foregoing basis from January 10, 1920. This results in supplying me with funds which at about present rate will carry us into October, perhaps to November 1st. After this fund exhausted Department’s expenses will, subject to future contingencies, be limited to amounts discussed paragraph 4 and 5 above. Boyden.

Wallace
  1. Ante, p. 349.