863.51/251
The Secretary of State to the Austrian Chargé (Prochnik)
Sir: I beg to acknowledge the receipt of your note of February 23, 1922, and to refer to previous conversations between us in regard to the proposals which have been made to this Government with a view to the postponement of the claims of the United States against Austria.
You will doubtless recall that in our various conversations on this subject, I stated that no legal authority existed whereby this Government could take any action with regard to the above mentioned request, but I now take pleasure in informing you that the following Resolution has been passed by Congress and signed by the President which will enable this Government, under certain conditions therein set forth, to meet the request of your Government and the various [Page 618] other Governments which have addressed similar requests to this Government:
“joint resolution
Authorizing the extension, for a period of not to exceed twenty-five years, of the time for the payment of the principal and interest of the debt incurred by Austria for the purchase of flour from the United States Grain Corporation, and for other purposes.
Whereas the economic structure of Austria is approaching collapse and great numbers of the people of Austria are, in consequence, in imminent danger of starvation and threatened by diseases growing out of extreme privation and starvation; and
Whereas this Government wishes to cooperate in relieving Austria from the immediate burden created by her outstanding debts:
Therefore be it
Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Treasury is hereby authorized to extend, for a period not to exceed twenty-five years, the time of payment of the principal and interest of the debt incurred by Austria for the purchase of flour from the United States Grain Corporation, and to release Austrian assets pledged for the payment of such loan, in whole or in part, as may in the judgment of the Secretary of the Treasury be necessary for the accomplishment of the purposes of this resolution: Provided, however, That substantially all the other creditor nations, to wit: Czechoslovakia, Denmark, France, Great Britain, Greece, Holland, Italy, Norway, Rumania, Sweden, Switzerland, and Yugoslavia shall take action with regard to their respective claims against Austria similar to that herein set forth. The Secretary of the Treasury shall be authorized to decide when this proviso has been substantially complied with.
Passed the Senate March 9 (calendar day, March 15), 1922.”4
I would particularly call your attention to the last paragraph of this Resolution, providing for the assent of substantially all the other creditor nations and I am awaiting information whether the creditor nations therein referred to are prepared to take the necessary action, in order that I may inform the Secretary of the Treasury that the terms of the Resolution have been substantially complied with and that this Government may be in a position to take appropriate action.
Accept [etc.]
- Pub. Res., No. 46, 67th Cong., approved Apr. 6, 1922 (42 Stat. 491).↩