863.51 Relief Credits/212: Telegram
The Acting Secretary of State to the Ambassador in Great Britain (Dawes)
93. (1) Public Resolution No. 81 approved February 4, 1929, reads in part as follows:
“Resolved by the Senate and House of Representatives of the United States in Congress assembled, That in order that the United States may cooperate with the Governments of Denmark, France, Great Britain, Italy, the Netherlands, Norway, Sweden, and Switzerland in making it possible for Austria to obtain by means of a loan the additional funds necessary in the furtherance of its reconstruction program, the Secretary of the Treasury is hereby authorized, if he determines that substantially similar action has been taken by each of such Governments in respect of the Austrian relief bonds held by it (hiatus) to subordinate the lien of the United States upon the assets and revenues of Austria pledged for the payment of the Austrian relief bond held by the United States (hiatus) to a lien upon such assets and revenues as may be pledged for the payment of one or more loans floated by Austria in an aggregate net amount of not more than 725 million Austrian schillings and for a period of not more than 30 years from July 1, 1929.”
The Federal Government of the Republic of Austria has notified the Government of the United States that it intends to pledge for the new investment loan the following resources, to wit: (1) the revenues of the customs; (2) the gross receipts of the tobacco monopoly; (3) such parts of the other revenues and receipts of the Federal Government of Austria which for the full protection of the new [Page 396] loan may be considered necessary as a supplement in case the two previously referred to sources of income should be considered insufficient.
Within the limits of the authority conferred by the above resolution, the Secretary of the Treasury is willing to subordinate the lien of the United States upon the above-mentioned Austrian assets and revenues, but in view of the proviso contained in the resolution the Secretary of the Treasury will not be in a position to take such action unless and until substantially similar action has been taken by the Governments of Denmark, France, Great Britain, Italy, the Netherlands, Norway, Sweden and Switzerland. In this connection you will note that the Resolution empowers the Secretary of the Treasury to determine when the proviso has been substantially complied with.
- (2)
- The Department understands that Sir Frederick Leith-Ross, Chairman of the International Relief Bonds Committee, is acting for the other creditor Powers on an Austrian request to subordinate their liens. Please ascertain terms of such reply as may have been made through him.
- (3)
- To enable the Secretary of the Treasury to determine whether the conditions set forth in Public Resolution No. 81 have been fulfilled, the Department desires a direct statement from each of the Relief Creditor Governments regarding the action taken with respect to subordinating their liens.
- (4)
- A brief summary of Government’s reply should be cabled, full text following by pouch.
- (5)
- Repeat foregoing as Department’s instruction to Copenhagen, Paris, Rome, The Hague, Oslo, Stockholm and Berne after substituting for paragraph (2) a statement of information received from Leith-Ross.