871.51/598
The Minister in Rumania (Jay) to the Secretary of State
[Received January 6, 1925.]
Sir: I have the honor to refer to my Despatch No. 689 of December 5th last, transmitting a copy of the Legation’s Note of December 4th [Page 663] to the Foreign Office in regard to a further extension of the “Term of Grace” Law which would otherwise expire on December 15th.
The Legation has as yet received no reply to this communication but the Minister for Foreign Affairs has informed me that he expects shortly to send me a carefully prepared expose of the situation for transmission to Washington. I understand that this will consist of a brief drafted by the leading Rumanian financial and economic authorities, explaining the impossibility of granting preferential treatment to American creditors in view of the provisions contained in the collective agreements concluded with all the more important foreign creditors.
As the Legation anticipated, a brief bill was presented to the Chamber of Deputies on the 18th, and yesterday to the Senate providing for a further extension of this law for three months, i. e. to March 15th.
This measure as voted by Parliament, while operative in practice from the preceding expiration, becomes officially effective from the date of its promulgation in the Official Monitor which is often delayed.
I enclose a translation of the text of the measure as presented to Parliament together with its official explanatory preamble.67
The Rumanian Press shows scarcely any interest in the matter, presumably because these successive prolongations have been taken for granted in commercial circles and generally.
In my despatch referred to above, I mentioned the probability that the Rumanian Parliament would be asked in the near future to consider the enactment of a “Loi d’imprévision”. I now understand that the draft of such a law has been prepared by the Minister of Justice and that he announced the day before yesterday in the Senate that his draft had been approved by the Council of Ministers as well as by the Economic Commission of the Government, and that he proposed to lay it before Parliament in the near future.
While the Legation has as yet no information regarding the terms or provisions of this proposed law, I would call attention to the observations on this especial subject made by Dr. Van Norman on page 4 (paragraph 3) and page 5 (paragraph 1) of his letter of December 4th transmitted in my Despatch 689.67 As pointed out therein, the object of such a law as existing in other countries is not to afford protection to the solvent debtor.
I have [etc.]