800.51 W 89 Lithuania/18

The Minister in Estonia, Latvia, and Lithuania ( Coleman ) to the Secretary of State

No. 1540

Sir: I have the honor to acknowledge the receipt of the Department’s despatch No. 78 of November 7th, replying to my despatch No. 1275 of September 15, 1923, regarding the indebtedness of Lithuania to the United States; and am very glad to have the photostat copies of the obligations of the Government of Lithuania held by the United States Treasury.

I presume that Dr. Narushkevich’s contention that the American loan is secured by Lithuania’s claim for reparations from Germany is based on the clause in these obligations which reads:

“This note shall be entitled to the security of, and shall constitute a charge upon, any payments or property which the State of Lithuania may receive from Germany or any of its Allies, by way of reparation or cession.”

and that an attempt is now being made to expand the meaning of this clause into a tacit understanding that no payments will be asked for until reparations have been secured.

There is, of course, no ground for putting any such construction upon the words used, and I shall take the first suitable opportunity to inform Dr. Narushkevich that the Government of the United States does not so construe the agreement.

Dr. Narushkevich is at present in London but I have asked him to visit me for a few days prior to his departure for the United States, and I shall take that opportunity to discuss the matter with him.

I have [etc.]

F. W. B. Coleman