462.00 R 296/696: Telegram
The Ambassador in Great Britain (Kellogg) to the Secretary of State
[Received 4:20 p.m.]
467. Your telegram November 11, 5 p.m., received.67 I suggest that it might be wise to present the matter to Austen Chamberlain first and then say to him that should it be necessary for the Prime Minister to consider it I should like to have the opportunity of presenting it to him. To proceed otherwise might make Chamberlain think that I had gone over his head. I doubt if I can see him before next week for he is not receiving the diplomatic corps until afternoon, Friday. Also I suggest that I leave with Chamberlain a memorandum of our position similar to the memorandum (which was not presented) enclosed in my despatch no. 639, August 8, 1924,68 together with the legal arguments set forth in a later letter to you69 in which I emphasized the equitable position of the United States, and also calling attention to the approval given at the third plenary [Page 74] conference, July 28,70 to the report of second committee providing that with the resources placed at Agent General’s disposal he should provide for payments of reparations and other treaty charges during transition period in accordance with decisions as to distribution which would be taken by Allied and Associated Governments. I also have in my possession a letter from Owen Young which he has authorized me to use with the British Government and which states that paragraph 11 of the Dawes report was after careful consideration embodied for the purpose of making every type of claims of the Allied and Associated Powers against Germany a charge on the funds in the custody of the Agent General, and in consequence as long as Germany made her payments to Agent General in accordance with the plan she was thereby discharged from all claims of the Allied and Associated Powers. In view of suggestions made by Sir Eyre Crowe and Mr. Snowden that term “Associated Powers” was included without special significance, this latter might be used to advantage. Instructions requested.