462.00 R 29/284: Telegram
The Chargé in France (Harrison) to the Secretary of State
Paris, August 2,
1920—4 p.m.
[Received August 3—10:08 p.m.]
[Received August 3—10:08 p.m.]
1491. B–182 for Department and Davis. Referring to my 181, summary of inter-Allied percentage agreement.76
- 1st.
- Note their embarrassment in trying to make arrangements which really change the treaty. Without admitting this to be a fact article 3 of agreement for instance contemplates fixation of German indemnity debt without accounting contemplated by treaty, also every one knows contemplates fixing amount much below figure which treaty contemplates but language ignores these facts partly because of French emphatic prejudice against treaty change, also partly because none of the premiers wish to refer to parliaments in the manner legally necessary to amend the treaty. On question of indemnity figure, particularly any indemnity to which Germany may agree, I should raise no objection unless otherwise instructed. If they cannot reach necessary result without playing ostrich I will join the game.
- 2d.
- Their shipping arrangement, also many details of proposed accounting, are before us primarily on England’s anxiety not to get into position where because she has received in reparation more than her percentage, she will have to pay cash to Reparation Commission.
- 3d.
- Provision giving proceeds of dyes and chemical drugs to Belgium is understood by Belgium to mean that all countries are hereafter to pay cash. I was extremely glad I was able, under your authorization, to tell other delegates before notified of this arrangement that United States was preparing voluntarily to offer to pay cash for dyes.
- 4th.
- Have already cabled position I took formally at Spa, and which have since repeated, that Commission could not accept instructions as to valuation but was acting in judicial capacity under obligation give full credit to Germany under terms of treaty. This applies to ship valuations, also property handed over as penalty for Scapa Flow sinkings, also naval material, legal service having advised Germany entitled to credit for last two categories. Dubois,77 also probably others of Commission, agree my principle and I got impression they personally very glad have me take strong stand immediately on this point. One delegate who has strong personal [Page 416] opinion as to unfairness [of] valuation arrangements, both to Germany and to other powers, holds at same time view that treaty may be construed to effect that delegates not acting in judicial capacity but as agents of and subject to instructions of the Governments. So while willing vote to approve agreement he stated he would not do so without making clear that he was acting under instructions not expressing his personal conviction.
- 5th.
- While I have been unequivocal in my statements on credits and valuation I have told them I did not expect the matter to become serious because methods of avoiding difficulty so obvious. For instance, agreement by Germany to these credits and valuations or agreement fixing amount to be paid by Germany without reference to deliveries in kind so that there would be no need of valuing deliveries except as between the Allies or agreement that while this method of accounting certainly applies between Allie[s] it should not affect Reparation Commission accounts with Germany, but if they do not adopt some such a proposition my position is clear and without embarrassment except to them.
- 6th.
- Provision with respect to Belgian prize court cases illustrates again haste in drafting agreement. Nothing provided with respect to credit to Germany for these ships which is obviously necessary if Allie[s] do not recognize decisions; also amusing to find that two of these Belgian ships are owned in northern Schleswig zone so that probably Allies will not get these two ships although by agreement they are to give full tonnage to Belgium.
- 7th.
- You will see that the expense of armies of occupation is on their minds. It ought to be for every cent comes out of reparation. Their decision[s] regarding this matter seem to me of no legal importance from United States point of view for we are not party to them or to the treaty and our rights depend on arrangements prior to treaty and cannot be disturbed by what they do. We have also many means of bringing pressure to bear, if necessary. The last thing I expect is that they will attempt to invade our legal rights in this regard but my personal opinion is that this question of our army expense ought to be taken up immediately by proper authorities and discussed frankly, informally and quietly. Very likely it is already being done but if not we are getting rapidly into a position where whatever our rights we shall find it presently difficult to get the money, perhaps because it is not there, more likely because we should be ashamed to be seen carrying it away. They know our position, that if they want our troops they must be paid for. This is careful matter of record before Reparation Commission and in all other appropriate places, but Germany is the only party liable and Germany is legally mortgaged to signatories of the treaty without, so far as I know, [Page 417] our having any understanding with these powers that our claims for army costs shall have same protection as theirs. Commission has so far dealt with our army costs exactly same costs other armies without any comment on fact that our legal position is different from positions of other powers, but when Commission begins getting money from Germany on account of army costs and discusses distribution this money they will almost inevitably be driven to analyze legal situation which will be still further complicated by these recent agreements between themselves. Result would probably be merely that Commission would ask Powers what they wanted done and Powers would then take up the matter with United States, but for reasons stated above these questions should not be allowed to drag. We ought to clarify legal situation, determine just when and how we are to get our money. Probably ought arrange in manner least embarrassing to them and ourselves [to] reduce our forces very greatly. Will add incidentally my guess that they will try to get us to pay army costs out of balances on ships and Alien Custodian property. All this with appeal for advice on subject, not my business and about which I am ignorant.
- Boyden
- Harrison