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You are requested to ask the French authorities to give careful consideration to the particular privileges which the Commercial Cable Company desires to obtain and which are summarized at the end of the letter enclosed herewith.

You will please use your best efforts to bring about a prompt and satisfactory settlement of this question, which is of considerable concern in this country at the present time. I am [etc.]

CHARLES E. HUGHES

851.73/207

The Ambassador in France (Herrick) to the Secretary of State No. 51

PARIS, July 28, 1921.

[Received August 10.] SIR: In reply to the Department's Instruction No. 896, (File No. 851.73/171), of July 11, 1921,42 relative to the request of American cable companies to open offices in France, I have the honor to report that no reply has as yet been received from the Foreign Office in response to the representations made by the Embassy pursuant to the Department's Instruction No. 818 of April 25th last.

About a month ago, enquiries at the Foreign Office revealed the fact that the French Telegraph Administration still maintained its opposition to the demands of the American companies and that, any reply received, would therefore be unfavorable.

The Embassy got in touch with the representatives of the Commercial Cable and Western Union companies and obtained further information as to the privileges accorded the Radio-France Company in Paris and also as to the facilities granted the American companies by the British Telegraph Administration. This information was conveyed to the Foreign Office in various informal conversations and every effort made to impress upon them the importance which our Government attached to this question, and the advantages which would accrue to France by reason of the improvement in cable communications.

From recent conversations at the Foreign Office, I believe that the French reply, which I expect to receive shortly, will not be unfavorable, but will be something in the nature of a compromise whereby the companies will be given permission to open offices under the auspices of the Telegraph Administration, provided they employ officials of the P. T. T. for the handling, but not for the sending, of messages. This, I understand, would be satisfactory to the American companies. I have [etc.]

MYRON T. HERRICK

“Not printed.

851.73/207

The Secretary of State to the Ambassador in France (Herrick) No. 66

WASHINGTON, September 26, 1921. Sir: The Department has received your despatch No. 51, of July 28, 1921, relative to the applications of the Western Union and Commercial Cable Companies for permission to open offices in France so that they can deal directly with the people, and encloses herewith, for your consideration, a copy of a letter dated August 22, 1921,43 received by the Department from the President of the Commercial Cable Company, dealing with this matter.

Reference is made to the last paragraph of your despatch of July 28, 1921, in which you stated that you believed that the French reply which you expected to receive at an early date would not be unfavorable, but would be something in the nature of a compromise whereby the American companies would be given permission to open offices under the auspices of the Telegraph Administration, provided officials of the Post Telegraph and Telephone Services were employed for handling, but not for sending the messages.

You will please report whether you have received a reply from the Foreign Office, and if you have not received a reply, you are requested to urge the Foreign Office to expedite its decision in this matter.

As regards the statements in the letter of August 22, 1921, from the Commercial Cable Company regarding the discrimination which is said to exist in favor of French cable and wireless companies in the sending of messages, you will please ascertain whether these statements are true and, if so, you will discreetly bring this discrimination to the attention of the Foreign Office, pointing out that American companies object to the further extension to the French Cable Company of the privilege of opening offices and dealing directly with the public in the United States on equal terms with the American companies, so long as this discrimination against American cable companies is practiced by France.

The “ Kellogg Bill ”, referred to in the last paragraph of the letter of the Commercial Cable Company, is the Act of Congress approved May 27, 1921, two copies of which were forwarded to you with the Department's instruction No. 896 of July 11, 1921.*

For your personal information and guidance attention is invited to the fact that the Act of Congress approved May 27, 1921,4 provides for the regulation of the landing and operation of submarine cables in the United States. The Department is considering what steps it should take under the provisions of this Act with a view to

43

“ Not printed. * 42 Stat. 8.

terminating the privileges enjoyed by the French Cable Company of opening offices and dealing directly with the public on American territory, in case the French authorities decline to grant reciprocal treatment to American cable companies operating in France.

Please forward to the Department a report regarding the matter as promptly as possible. I am [etc.]

For the Secretary of State:

ROBERT WOODS BLISS

851.73/227

The Chargé in France (Whitehouse) to the Acting Secretary of

State

No. 2284

Paris, September 1, 1922.

[Received September 12.] Sir: I have the honor to transmit herewith copy and translation in triplicate of the reply of the French Government 48 to our request of a year ago relative to the opening of offices in France by the American cable companies. On account of pressure of work and the fact that the enclosures are undoubtedly familiar to the Department, they are transmitted herewith as received from the Foreign Office.

The only interesting point in the note is the offer to allow the Commercial Cable Company to open one public bureau in Paris. This offer, however, is unfortunately conditional on the satisfactory settlement of the question of the German cables.

I had quite a long conversation with Mr. Jusserand at the Foreign Office the other day and from the language and arguments employed in the note, I think it is probable that he wrote it. I have [etc.]

SHELDON WHITEHOUSE

851.73/227

The Secretary of State to the Ambassador in France (Herrick)

WASHINGTON, November 1, 1922. Sir: The Department refers to your despatch No. 2284, of September 1, 1922, transmitting a copy of the reply of the French Government with respect to the applications of American cable companies for permission to open offices in France, and encloses for your information and appropriate use, a copy of a despatch, No. 1078, dated September 14, 1922,47 received from the American Legation at the Hague and copies of letters, dated October 7 and October 9, 1922,47 received from the Commercial Cable Company and the Western Union Telegraph Company, respectively, with regard to agreements which have been concluded with the Netherlands Government for opening cable offices by these companies in Holland for dealing directly with the public. You will note that the President of the Western Union Telegraph Company expresses the hope that his company may be able to conclude a similar agreement with the French Government.

No. 463

* Not printed.

You may inform the Foreign Office concerning the favorable action taken by the Netherlands Government on this question, and you will urge the French Government to extend similar treatment to these American cable companies, submitting a report to the Department. I am [etc.]

For the Secretary of State:

LELAND HARRISON

Not printed.

GERMANY

EFFORTS OF THE UNITED STATES TO ASSIST IN THE SOLUTION OF

THE PROBLEMS OF GERMAN REPARATION

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862.51/1537

The German Chargé (Von Thermann) to the Acting Secretary of

State

The German Chargé d'Affaires a. i. presents his compliments to the Hon. Secretary of State and has the honor to submit, by direct instruction of the German Government, the following:

Representatives of all German Labor Unions (Gewerkschaften) and Federations of Employees (Angestellten-Verbände) have informed the German Government that, in consequence of the mark catastrophe, perfectly impossible conditions have been created for the existence of the broad masses of the German people. The value of the dollar is 2,000.- marks to-day. Extensive scarcity of means of payment is already felt. The German Chargé d'Affaires a. i., therefore, has the honor to call the attention of the U. S. Government to the situation in Germany. The present German Government has done all in her power politically to fulfill her obligations. The declaration of the unions mentioned above, which have been faithful supporters of this policy, proves the absolute necessity of immediate help from outside.

WASHINGTON, August 26, 1922.

862.51/1537 : Telegram

The Acting Secretary of State to the Secretary of State ?

WASHINGTON, August 28, 1922—3 p.m. 6. On Saturday the German Chargé presented, under instructions, a brief note reciting the seriousness of the economic situation in Germany, the fact that dollar is two thousand marks, the extensive scarcity of means of payment; that Germany has done all in her power politically to fulfill her obligations, and referring to “ the absolute need of immediate help from outside". In addition, German

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Continued from Foreign Relations, 1921, vol. II, pp. 36-58.
On board the S. S. Pan America, en route to Brazil.

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