Office of the Historian

860h.51/362: Telegram

The Secretary of State to the Minister in the Kingdom of the Serbs, Croats and Slovenes (Dodge)

Washington, April 27, 1923—6 p.m.

4. Your despatch 1795, February 12. Department does not understand reasoning contained in Foreign Minister’s note February 7. As pointed out in previous instructions all this indebtedness is on equal footing. This note, although ambiguous, seems to recognize this.

Please informally endeavor in every proper way to impress upon appropriate officials of the Yugoslav Government the particular importance to Yugoslavia of refunding its obligations to the United States. Department informed by Yugoslav Minister October 25 [,1922]80 that he had been authorized by his Government “to act in the place of former Minister Grouitch in the negotiations for the settlement or refunding of its obligations” but neither former nor present Minister has made any proposition to World War Foreign Debt Commission. It is very desirable that Yugoslav Government instruct Minister to initiate definite negotiations. In this connection you may point out orally and discreetly, if you deem it desirable, that such a step might favorably affect the credit of Yugoslavia in the United States and the market for its securities.

You should keep Department closely informed of developments as to refunding indebtedness to France and England, and satisfy yourself that no action is taken in this connection in disregard of assurance of treatment on equal footing contained in Vesnitch letters to Davis April 26 and June 4, 1919.81 See especially Department’s instruction October 12, 1922.82

Hughes
  1. Foreign Relations, 1922, vol. i, p. 416.↩
  2. In April, May, and June of 1919 there was an exchange of letters in Paris between Mr. Norman H. Davis, Finance Commissioner of the United States, and Mr. Pachitch, Prime Minister of Serbia, and Mr. Vesnitch, Serbian Minister to France and Delegate to the Peace Conference, in respect to advances and credits granted by the United States to Serbia for relief and reconstruction purposes since Nov. 11, 1918. This correspondence resulted in Mr. Vesniteh’s giving, on behalf of his Government, certain assurances designed to have the effect of placing the United States on a plane of equality with other lending governments in respect to advances and credits of a similar nature granted by them to Serbia. (Letter from the Secretary of the Treasury to the Secretary of State, Sept. 24, 1921; not printed. File No. 860h.51/80.)↩
  3. Not printed.↩