EFFORTS TO SECURE FOR AMERICAN FIRMS EQUAL CONSIDERATION WITH OTHER

FOREIGN COMPANIES IN BIDS FOR ARGENTINE NAVAL CONSTRUCTIONContinued

1 Date and

number

Subject

Page

1927 June 14 (2322)

432

July 28

(26)

433

433

Aug. 9

(70)

To the Ambassador in France

Report from Electric Boat Co. that it has virtually succeeded
in obtaining a contract to construct three submarines for the
Argentine navy, the construction to be done in a French ship-
yard under American patents. Instructions, should it become
necessary, to assist the company's Paris representative,
through informal representations to appropriate French
authorities, in selecting a satisfactory yard.
To the Chargé in Argentina (tel.)

Report from Electric Boat Co. that the submarine contract
is about to be awarded to an Italian firm; instructions to make
informal inquiry, in view of Department's understanding that
decision had been made in favor of the American company.
From the Chargé in Argentina (tel.)

Promise of Foreign Under Secretary to inquire into the sub-
marine matter; confidential information that contract is to be
awarded to Italian firm because Board of Admirals has reversed
its decision and now considers the Italian type superior to the
Electric Boat Co.'s submarine; advice that as yet the con-
tracts have not been let.
To the Chargé in Argentina (tel.)

Instructions to inform President of Department's sincere
hope that no decision will be made until the Electric Boat Co.
has had the opportunity to present evidence of the arrange-
ments made by it in France.

(Footnote: Information that the Electric Boat Co. advised,
August 20, that the Argentine Government had agreed to
postpone the final decision.)
From the Ambassador in Argentina

Report on the awards which have already been let, including
contract for the three submarines to an Italian firm; explana-
tion of the political reasons for awards to British, Italian, and
Spanish firms; possibility that Bethlehem Co. will receive con-
tract for four river gunboats, on account of their offer to
assemble one boat in Argentina with Argentine workmen;
opinion that American firms cannot secure the orders unless
they can reduce production costs sufficiently to enable them
to meet prices of European rivals.

Aug. 18

(31)

434

434

Oct. 17

(37)

AUSTRALIA REPRESENTATIONS BY THE AUSTRALIAN GOVERNMENT REGARDING ENTRY OF

AUSTRALIAN BUSINESSMEN INTO THE UNITED STATES

Date and number

Subject

Page

437

439

1927 Jan. 14 From the Commissioner for Australia

Desire that the privileges granted to businessmen of the United Kingdom as to entry into the United States to establish and maintain offices, be extended in like manner to citizens of Australia, possibly by extension of U. S.-British commercial treaty of 1815 to Australian citizens, or the conclusion of a

special U. S.-Australian treaty for a similar purpose. (Feb. 26) To the British Ambassador

Information that the treaty of 1815 relates only to British possessions in Europe and not to British overseas possessions, and that the provisions of the Immigration Act of 1924 relating to entry under an existing commercial treaty would not apply to a treaty concluded subsequently; assurance that Department is deeply interested and will communicate in this regard

at a later date.
Undated | From the British Embassy
(Rec'd Desire that question of entry of Australian businessmen into
Nov. 30) the United States be reopened, and inquiry whether the ques-

tion of amending the Immigration Act of 1924 to permit entry
for business purposes without restriction as to length of stay,
may not be brought up before the next session of Congress.

440

AUSTRIA NEGOTIATIONS RESPECTING SUBORDINATION OF THE AUSTRIAN RELIEF LOAN TO

A PROPOSED NEW AUSTRIAN LOAN

Date and number

Subject

Page

1927 Aug. 30 (1508)

442

From the Minister in Austria

Information that Austrian Government contemplates flota-
tion of a new Federal loan for internal improvements, and that
such a loan is contingent upon consent of the Austrian Control
Committee, the Reparation Commission, and the states having
prior liens on Austria because of relief credits; Austrian Gov-
ernment's desire that the competent U. S. law officers investi-
gate in a preliminary way the question as to what action is
necessary by the United States to subordinate its existing lien
in the form of Austrian Relief Bond of 1920, held on account of
food purchased from the U. S. Grain Corporation for relief
purposes.
From the Minister in Austria (tel.)

Austrian Chancellor's official and urgent request for reply to
the question set forth in Minister's despatch No. 1508, August
30.

Sept. 20

(54)

444

NEGOTIATIONS RESPECTING SUBORDINATION OF THE AUSTRIAN RELIEF LOAN

TO A PROPOSED New AUSTRIAN LOAN—Continued

Date and number

Subject

Page

1927 Sept. 20

(1532)

444

Sept. 24

447

448

Oct. 17

(1573)

Oct. 18

From the Minister in Austria

Further details in connection with Chancellor's request com-
municated in telegram No. 54, September 20; inquiry whether
the U.S. Secretary of the Treasury has authority under the
joint resolution of Congress of April 6, 1922, to subordinate
the relief lien to a new Austrian loan, providing such new loan
matures within the 25-year period prescribed in the resolution,
or whether a new enabling act of Congress would be required;
Austrian expectation of speedy and favorable action by Con-
trol Committee, Reparation Commission, and Relief Credit
Committee composed of the relief credit states other than the
United States.
To the Secretary of the Treasury

Transmittal of copy of Minister's despatch No. 1508, August
30, and information that a telegram has been received from the
Minister communicating Chancellor's request for interpreta-
tion of the authority of the Secretary of the Treasury under
the joint resolution of April 6, 1922.
From the Minister in Austria

Receipt, October 14, of note from Austrian Chancellor (text
printed), advising that Control Committee gave consent to the
new loan on October 12, that request has been made to Repara-
tion Commission to defer the lien placed on Austrian assets
and revenues for reparation purposes under the treaty of St.
Germain, and asking that the United States grant a suspension
of its lien and postponement until December 31, 1957, of the
payments due under relief loan.
To the Secretary of the Treasury

Informal inquiry by the Austrian Minister whether the
Secretary of the Treasury has the power, without further con-
gressional authority, to extend the time of relief-debt payment
by Austria for an additional period of 5 years.
From Mr. R. C. Leffingwell of J. P. Morgan & Co.

Confirmation of telephonic advice that J. P. Morgan & Co.
has accepted in principle Austrian request that it issue the por-
tion of the new loan to be floated in the United States; decision
by the Committee of Guarantor States, October 12 (text
printed), consenting to the new loan, and declaration (text
printed) by the Trustees of the Austrian loan of 1923, to the
effect that when the negotiations are further advanced, it will
be possible to consider whether loan is prejudicial to the hold-
ers of 1923 bonds.
From the Secretary of the Treasury

Opinion by Attorney General that the Secretary of the
Treasury is not empowered under the joint resolution to ex-
tend the time of payment of the Austrian relief debt, and Sec-
retary's conclusion, therefore, that he could not take any
action without further authorization by Congress.
To the Minister in Austria (tel.)

Information that law officers of U. S. Government have de-
cided that the Secretary of the Treasury has no power to act
further under the joint resolution, and that a new enabling act
of Congress would be necessary to enable him to take the sug-
gested action.

450

Oct. 18

450

Oct. 21

453

454

Oct. 28

(20)

NEGOTIATIONS RESPECTING SUBORDINATION OF THE AUSTRIAN RELIEF LOAN

TO A PROPOSED NEW AUSTRIAN LOAN—Continued

Date and number

Subject

Page

454

455

456

458

458

1927
Oct. 29 From the Minister in Austria
(1585) Advice that the Chancellor is being informed in the sense

of Department's telegram No. 20, October 28; assumption that
the Department will at the proper time take appropriate action

to obtain a new congressional enabling act. Nov. 28 To the Secretary of the Treasury

Transmittal, for information and comment, of copy of

Minister's despatch No. 1585, October 29.
Nov. 30 From the Minister in Austria
(1629) Information that Austria is on the verge of abandoning re-

quests for postponement of payments on relief debt, leaving
only to be dealt with by congressional resolution the request for
release of Austrian assets pledged for payment of said debt;
also, that Austria contemplates the negotiation of a general
funding arrangement for the entire relief credits of the states

concerned, following flotation of the new federal loan.
Dec. 2 From the Minister in Austria (tel.)
(66) Abandonment by Austria of request for postponement of

relief-debt payments, leaving only its request that assets
pledged for payment of the debt be subordinated to the con-

templated new Federal loan.
Dec. 6 From the Austrian Minister
(2423/70) Inquiry whether the United States would be willing to enter

into negotiations for the relief-debt funding, by which arrange-
ment payments should not begin until 1943, at which time
payment of the whole debt, principal and interest, should be-
gin in 25 equal yearly installments, the installments to include
an amount corresponding to the loss of interest which the
creditors suffered by nonpayment of agreed-upon installments

due prior to 1943.
Dec. 8 To the Secretary of the Treasury

Transmittal of copy of Minister's telegram No. 66, December 2, and copy of a telegram from the Embassy in Paris, December 3, advising that Reparation Commission has postponed discussion of Austrian relief bonds and loan question

until its meeting on January 14, 1928. Dec. 14 From Mr. R. C. Leffingwell of J. P. Morgan & Co.

Reminder that Austrian Government and European relief creditor states are holding discussions in London, and understanding that Austrian Government has suggested that U. S.

Government might wish to be represented.
Dec. 14 From the Minister in Austria
(1656) Information concerning London meetings of International

Relief Bonds Committee, December 2 and 12, at which latter
meeting it was decided to transmit the Austrian relief-funding
proposal to the governments represented on the Committee,
and a resolution was passed, without affirmative votes by
Dutch or Swiss, authorizing the subordination to the projected
new federal loan for a period of 30 years of the Austrian assets
pledged for the repayment of the relief credits. Advice that
the next step will be the proceedings before the Reparation
Commission.

459

460

460

NEGOTIATIONS RESPECTING SUBORDINATION OF THE AUSTRIAN RELIEF LOAN

TO A PROPOSED NEW AUSTRIAN LOAN—Continued

Date and number

Subject

Page

1927 Dec. 23

463

Dec. 23

465

465

Dec. 28 (1664)

To the Secretary of the Treasury

Transmittal of Austrian Minister's note of December 6 and
American Minister's despatch No. 1629 of November 30; belief
that Department might inform the Austrian Minister, if the
Secretary of the Treasury concurs, that the U. S. Government
is disposed to consider the relief-debt funding proposal, but
desires a more specific statement of proposal before giving any
further expression of views; request for possible comment on
the desirability of the U. $. Government's keeping in touch
with the discussions between the Austrian and relief creditor
governments.
To Mr. R. C. Leffingwell of J. P. Morgan & Co.

Nonreceipt from Austria or any of the creditor states of
suggestion that the U. S. Government participate in or keep
in touch with the London discussions.
From the Minister in Austria

Further details of meetings in London, December 2 and 12,
of International Relief Bonds Committee; formal funding
proposal submitted to Committee by Austrian Government
(text printed); Committee's resolution of December 12 con-
senting to release of Austrian securities to new federal loan,
Committee's communication of December 20 notifying of
Netherlands and Swiss consent, and Control Committee's
resolution of October 12 consenting to new federal loan (texts
printed).
From the Austrian Minister

Request for action by the Department to arrange for recom-
mendation to Congress of legislation authorizing the deferment
for 30 years of the lien for relief credits extended to Austria;
request for reply to Austrian proposal for relief-debt funding.
From Mr. R. C. Leffingwell of J. P. Morgan & Co.

Advice that London partners have been cabled to advise
Austrian Minister in Great Britain of Department's letter of
December 23, since it was the Minister's lintention to ask if
Department wished to be represented in the discussions;
additional details concerning nature of the Austrian funding
proposal.
To the Secretary of the Treasury,

Transmittal of Austrian Minister's note No. 2351/70, of
December 28, 1927, and Mr. R. C. Leffingwell's letter of
December 29, 1927; suggestion that, if the Secretary of the
Treasury concurs, the Department might inform Austrian
Minister in the sense of its letter of December 23 to the Treas-
ury, pointing out that consideration of the proposal to defer
the lien would be facilitated by the receipt of more specific
information as to the relief-debt funding proj

472

Dec. 28
(2531/70)

Dec. 29

473

1928 Jan. 7

474