871.6363/176: Telegram

The Secretary of State to the Minister in Rumania (Jay)

[Paraphrase]

19. Legation’s telegram 27 of June 29. The Department is concerned at the passage of the mining law on account of the possibility apparently offered by this law for the Rumanian authorities to take a course of action by which legitimate American interests would be adversely affected. This law, furthermore, is only the latest of a series of measures which the Rumanian Government has [Page 614] taken during the past two years tending to give the impression that Rumania is not willing to treat American interests as those interests might naturally expect to be treated by Rumanian authorities. A lack of desire on the part of the Rumanian Government for the improvement of its existing relations with the United States is shown not only by the passage of the mining law but also by the attitude of the Rumanian Debt Funding Commission to the United States, the Consolidation Loan program,20 the Commercial Indebtedness Law,21 and the failure to give proper consideration to the claims of the Baldwin Locomotive, International Harvester, and other American companies.

Because of the situation outlined above the Department is considering asking you to return to the United States for consultation. This action is contemplated with a view to adopting a policy calculated to improve this situation as well as to call the attention of the Rumanian officials clearly to the concern with which our Government views recent developments. If you are instructed to return to this country you would be authorized to make clear to your colleagues and to the Rumanian Government that you were returning for consultation regarding the unsatisfactory attitude shown toward our nationals and their interests by the Rumanian Government.

The Department wishes a telegraphic report of your views regarding the proposed action; you will then be given further instructions.

Hughes
  1. A program for the consolidation of debts owed by the Rumanian Government to private foreign interests under the provisions of a law passed in June 1922. The United States objected because of priorities which were considered in conflict with pledges given regarding the Rumanian debt to the American Government, and because of objections from certain private American creditors.
  2. See pp. 648 ff.