With reference to the German Government's request with respect to a declaration on the part of the Government of the United States. more particularly defining the claims to be presented to the Commission, it is believed that satisfactory explanation and assurances can be given to the German Government on that point. The President of the United States has not the authority to waive rights secured by the Treaty of August 25, 1921, nor is he in a position to make any declaration with respect to the power of Congress over sequestered property which is fixed by statute. However, you are authorized by the President to state that he has no intention of pressing against Germany or of presenting to the Commission established under the claims agreement any claims not covered by the Treaty of August 25, 1921, or any claims falling within paragraphs 5 to 7 inclusive of the Annex following Article 244 of the Treaty of Versailles. This Government considers it inadvisable to incorporate into the agreement an article fixing a time limit for the presentation of claims. It is not altogether clear what the German Government has in mind. with respect to such an article. If agents or counsel should be excluded from appearing before the Commission after the time limit fixed by such an article, it would seem probable that the work of the Commission might be greatly delayed instead of being expedited, since obviously the presentation of claims in the best possible form would facilitate the work of the Commission. This Government is as desirous, as is the German Government, of hastening the work. It would, therefore, be willing to have a separate understanding by an exchange of notes with the German Government regarding the filing of notices of all claims within a reasonable, specified period, as for example six months. Communicate with Foreign Office in sense of foregoing. Power to sign agreement is being telegraphed to you. Before signing please telegraph Department with respect to consummation of all preliminary arrangements. [Paraphrase.] In view of situation here created by introduction of the Underwood Bill it is very important that this agreement should be concluded at the earliest possible moment. As an Executive agreement that is clearly within the precedents, it will take effect when signed. We desire it to be arranged that the President may at once announce Germany's request that he should appoint the umpire and the appointment of Justice Day. The announcement should be made simultaneously with the publication of the agreement. Until this announcement nothing should be given to the press. You should cable arrangements so that publication may be made on same day here and in Berlin. [End paraphrase.] HUGHES 462.11 W 892/52: Telegram The Ambassador in Germany (Houghton) to the Secretary of State BERLIN, August 7, 1922-4 p.m. [Received August 8-8:20 a.m.] 158. Your 105, August 5, noon. In last sentence of second paragraph should not "paragraphs 5 to 6 inclusive " read "paragraphs 5 to 7 inclusive ". Also end of second paragraph, Foreign Office requests addition of phrase "and the Treaty of Versailles" after words "August 25, 1921," in order to correspond with language used in article I of agreement. Foreign Office states that omission of reference to the Treaty Versailles would cause serious parliamentary opposition. Affirmative action of Department on the above matter consummates preliminary arrangements and will enable me to sign probably tomorrow if so instructed. HOUGHTON 462.11 W 892/53: Telegram The Ambassador in Germany (Houghton) to the Secretary of State BERLIN, August 7, 1922-5 p.m. 159. Your 105, August 5, noon. The following is the translation of the text of the note from the Foreign Office which will be handed to me upon signature of claims agreement and which will request the President to appoint an umpire. "Foreign Office, Berlin. Mr. Ambassador. The agreement concluded today for the settlement of the amount of American claims for damages provided, by Article 2, that on the basis of an agreement between the two Governments concerned an umpire shall be chosen. The German Government is convinced of the intention of the American Government to carry out in an accommodating and just manner the settlement of the questions still to be solved between the two States concerned, the way to which is opened by the signature of the agreement. It is still farther strengthened in this belief by the assurances received from Your Excellency. The German Government believes that the distrust of nations toward one another brought about by the war and the severe economic damages which it caused to all countries concerned can be most certainly done away with if these countries decide to approach the solution of the questions which have arisen between them as a consequence of the war in a generous manner and in the spirit of mutual accommodation. The German Government welcomes the fact that the American Government intends to take the initiative in this connection. In order to make this possible and in order to give the American Government a proof of its confidence, the German Government has the honor to 32604-vol. II-38-24 request the President of the United States to cause an American person, seeming to him suited for this responsible office, to accept the position of umpire such as is contemplated in the above-mentioned agreement. I should be grateful to Your Excellency if you would transmit this proposal of the German Government to the President of the United States. At the same time I take advantage of this occasion to renew to you, Mr. Ambassador, the assurance of my most distinguished consideration. Wirth." HOUGHTON 462.11 W 892/52: Telegram The Secretary of State to the Ambassador in Germany (Houghton) WASHINGTON, August 8, 1922-6 p.m. 108. Your 158, August 7, 4 P.M. Last sentence paragraph 2 Department's 105 read "paragraphs 5 to 7 inclusive ". It was evidently garbled in transmission. It is not practicable to accede to request of Foreign Office with regard to the addition of the words " and the Treaty of Versailles ". There would be no objection if phrase were used in same sense as in Article 1. That article does not limit claims to those defined in Treaty of Versailles but also embraces claims, if any others, covered by Treaty of August 25, 1921. See preamble which makes this clear. The proposed addition at end of second paragraph Department's 105, August 5th, would seem to be intended to impose different construction by requiring claims to be defined in both treaties and thus limit claims to those covered by Treaty of Versailles. The President has no authority actually to limit treaty rights in this manner, and if he were to give assurance so as to bar bona fide claims of American citizens, result would be that Congress would undoubtedly assert them and make provision for their payment out of sequestered property. Germany would not be gainer by such a course. Government claims in paragraphs 5 to 7 above mentioned stand in different position because of question of policy involved as to war pensions and allowances. As a matter of fact under a proper interpretation of the Treaty of Versailles probably all claims which are covered by the Treaty of 1921 are included in the Treaty of Versailles. But it is undesirable that there should be any misunderstanding with regard to technicalities or as to any just claim covered by the Treaty of 1921. It is made clear by the Resolution of July 2, 1921,2 that the Government of the United States must insist on suitable arrangements being made for the settlement of claims growing out of acts of the German Government or its agents since July 31, 1914. Paragraph 4 of the Annex following Article 298 of the Treaty of Versailles, relates to 2 Foreign Relations, 1921, vol. I, p. 3. claims growing out of acts committed since July 31, 1914, and before the United States entered the war. Of course, these are embraced. in the claims agreement. But this Government's attention has been specifically called to certain classes of claims which arise out of acts committed since that date and which although evidently covered by the Treaty of Versailles, might give rise to unfortunate controversy should the assurance proposed by the German Government be given and a question then be raised. Attention may be called by way of illustration to the claim of the Western Electric Company for damages to property in Belgium, which appears to have been brought to the attention of the German Government informally by the Company. Claims of this character seem clearly to fall within paragraph (9) of Annex I following Article 244 of the Treaty of Versailles. It is understood, however, that, although the subsidiary of the Western Electric Company is incorporated in Belgium, the Belgian Government has refused to deal with the Company's claim as a Belgian claim, in view of the fact that the entire beneficial interest in the Company is American. It is believed that the German Government will perceive the desirability that there should be no question raised concerning claims of this character. Since they come undoubtedly within the scope of the Resolution of July 2, 1921, and therefore within the Treaty of 1921, and since the ultimate disposition of sequestered property which the Resolution provides shall be held pending the making of suitable provision for such claims rests with Congress, no advantage could accrue to the German Government through any declaration which might render doubtful the competency of the Commission to consider these claims. (This would on the other hand at once stimulate action by Congress.) Communicate with Foreign Office in sense of the foregoing. HUGHES 462.11 W 892/55b The Secretary of State to President Harding [WASHINGTON,] August 10, 1922. MY DEAR MR. PRESIDENT: Ambassador Houghton telegraphed today at 1 p.m. Berlin time, as follows: "Will sign agreement seven tonight. Will cable directly signature is made and one hour thereafter will give to press." This means that in all probability the Claims Agreement has already been signed and given out, and we shall hear to this effect very shortly.3 At 4:45 p. m., Washington time, a telegram was received, reading "Agreement signed. Honghton." Accordingly I am arranging a statement for the press, giving the text of the agreement and the text of the request which was made by the German Government to Ambassador Houghton simultaneously with the signing of the agreement that you should name the Umpire. I am also stating that you have named Associate Justice William R. Day of the United States Supreme Court. It seems to me important that this designation should be made known as soon as the Convention is made public, in order that the full significance of the arrangement may be understood. I telegraphed Ambassador Houghton to this effect and I assume that he is proceeding accordingly in his statement to the press. May I ask if this announcement has your approval? + Faithfully yours, 4 CHARLES E. HUGHES 462.11 W 892/55 Memorandum by President Harding for the Secretary of State 5 DEAR MR. SEC[RETAR]Y: In making the announcement, please emphasize the request to us to name umpire. It is so unusual that its significance is worth bringing well to the fore. W[ARREN] G. H[ARDING] Treaty Series No. 665 Agreement between the United States of America and Germany, Signed at Berlin, August 10, 1929 THE UNITED STATES OF AMERICA AND GERMANY, being desirous of determining the amount to be paid by Germany in satisfaction of Germany's financial obligations under the Treaty concluded by the two Governments on August 25, 1921, which secures to the United States and its nationals rights specified under a resolution of the Congress of the United States of July 2, 1921, including rights under the Treaty of Versailles, have resolved to submit the questions for decision to a mixed commission and have appointed as their plenipotentiaries for the purpose of concluding the following agreement: This document bears the undated notation in longhand, "Approved. Warren G. Harding." This undated memorandum, in longhand, was received by the Secretary on Aug. 10. In English and German; German text not printed. |