871.6363/196: Telegram
The Acting Secretary of State to the Minister in Rumania (Jay)
[Paraphrase]
Washington, July 30,
1924—5 p.m.
34. Your telegram 52 of July 25, 11 p.m.
- (1)
- Your recommendation in penultimate paragraph approved. Department is gratified to note substantial progress made by you with respect to claim of Baldwin Locomotive Company and other matters mentioned in your telegram.
- (2)
- At your discretion you may temporarily postpone your departure if by staying a few more days in Bucharest you could assist in assuring the consummation of the arrangement between the Rumanian Government and the Baldwin Locomotive Company, or in having the Rumanian Government negotiate with the representative of the Chase National Bank and the Equitable Trust Company, or if you believe there is any possibility of making a start toward securing a satisfactory solution of other matters which are pending. The policy of the Department, as already indicated, is not to make a settlement of pending issues more difficult but to reach a settlement. Progress has been made on some questions as a result of your vigorous representations and it is the wish of the Department that every possibility of settling other matters be investigated. You should [Page 627] leave for your return trip as soon as you feel that no further definite results will be forthcoming through your continued stay at Bucharest. This telegram may be considered as your instructions to leave.
- (3)
- A few days before time for your departure telegraph the Department the date you will leave so that appropriate information may be given to the press. Any statement which the Department may make to the press at this time will be limited to a statement that you are coming home on leave and for personal conference and that it is expected that in due time you will return to Bucharest.
- (4)
- It is desired that you come back via Paris and London so as to inform yourself with respect to the attitude taken by the French and British authorities regarding Rumanian questions. The Department would be particularly pleased to receive any information which you might discreetly obtain with regard to the reported visit to London of the Rumanian Finance Minister in the effort to secure a loan, possibly offering state oil lands for a guarantee. …
- (5)
- You should inform the Rumanian Government prior to leaving of your instructions to return to Washington for consultation. This notice may be given orally or in writing as you deem most appropriate. You may at your discretion in this connection indicate that the action of the Rumanian Government with respect to the Baldwin Locomotive Company and in the Aladar Nagy case is gratifying to the Department. You may add that you hope that as soon as possible negotiations for the settlement of the Transoceanic Corporation’s claim34 and other pending issues will be brought to a successful conclusion. The time of your return to Bucharest may be influenced by the attitude of the Rumanian Government on these various questions which are pending.
- (6)
- The Rumanian statement regarding the mining law does not appear to the Department a satisfactory assurance. You may so state in your communication to the Rumanian Government if you think it wise to do so.
- (7)
- You should state that our Government considers the so-called Term of Grace Law,35 with its extensions, as an arbitrary and improper interference by the Government with existing private rights, preventing American creditors from obtaining payment of money owed to them in American dollars by Rumanian debtors, to the serious embarrassment and loss of the creditors. This situation might result in making losses of American citizens on account of the law a liability against the Rumanian Government. You may ask to have no further extension of this law.
- (8)
- You may also indicate that for the present at least the Department will avoid giving any construction to your return or making any press statement which will make it more difficult in any way to continue negotiations to settle pending issues. Full right is reserved by the Department, of course, to make such additional public statement as to the underlying reasons for your coming home as may appear necessary in the future should negotiations on the points at issue prove abortive or should the situation of American interests in Rumania continue unsatisfactory.
Grew