711.62119/39: Telegram

The Secretary of State to the Commissioner at Berlin (Dresel)

1376. Your 674, August 19, 4 pm and 675, August 19, 5 pm.12

Point 1. It will be entirely agreeable to this Government to resume diplomatic relations at once upon exchange of ratifications of proposed treaty and then to undertake any negotiations that may be desired by either Germany or the United States with relation to commerce or other matters. This Government looks forward in the same event to the fostering of commercial relations between the two countries. You may confirm this understanding in the foregoing language.

Point 2. This Government does not believe there is reason for apprehension by Germany with respect to Article I of proposed Treaty. As stated in Department’s 1373, of August 19, 7 pm., it is of great importance that reference in that Article to Peace Resolution of Congress should be retained. On account of conditions here, no opportunity should be afforded for contention that terms of Peace Resolution are not observed. This is a practical situation which the German Government should not fail to consider, as controversy resulting from insistence on Germany’s proposal in Point 2 would be serious obstacle to resumption of diplomatic and economic relations. On the other hand, Germany would lose nothing by her assent to Article I as this Government proposed it.

This Government construes the reference to Section 2 of Peace Resolution as creating no new rights as against Germany and as not going beyond the rights which are accorded by Treaty of Versailles and incorporated by reference to that Treaty in the proposed treaty. It does, however, assert intention to maintain all rights obtained through participation in the War and thus to maintain equal footing with co-belligerents.

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It is the belief of this Department that there is no real difference between provision of proposed treaty relating to rights under Peace Resolution and the rights covered by Treaty of Versailles, save as: distinction may be found in that part of Section 5 of Peace Resolution which relates to claims of United States nationals for injuries to persons and property. With respect to this provision, it should be noted that it does not increase obligations or burdens of Germany because all the property referred to would be held subject to Congressional action if no treaty were signed and would not be available to Germany in any event under the terms of the Treaty of Versailles save as against reparation obligations. Whether the claims of United States nationals were pressed in one way or another would be a matter of procedure and would make no practical difference to Germany in the final result.

The Administration is fully appreciative of the considerations entertained by Germany with respect to property sequestered here, and desires a just and reasonable settlement. There is nothing, however, for Germany to gain by opposing the terms of the Peace Resolution or by insisting on anything which could be claimed to be a departure therefrom in the proposed treaty.

It is earnestly urged, with full regard for all the circumstances, that the signing of the Treaty as proposed by this Government,—that is, without the change suggested in Point 2 of your 674,—will pave the way for consideration of the questions relating to property sequestered here which the President desires to be dealt with upon the most fair and righteous basis. It is hoped that Germany’s attitude toward this subject will not put obstacles in the way.

Point 3. This Government accedes to the construction of the German Government of paragraph (5) of Article II of proposed Treaty, that this provision is not intended to apply to time limits laid down in Part XIV of the Treaty of Versailles or to those provided by Article 280 of that Treaty.

Point 4. Description in Preamble of German State agreed to.

You may communicate to Rosen contents of this telegram.

Hughes
  1. The latter not printed.