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EFFORTS TO SECURE FOR AMERICAN FIRMS EQUAL CONSIDERATION WITH OTHER FOREIGN COMPANIES IN BIDS FOR ARGENTINE NAVAL CONSTRUCTIONContinued

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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 shipyard 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 submarine 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 contracts 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 arrangements 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; explanation of the political reasons for awards to British, Italian, and Spanish firms; possibility that Bethlehem Co. will receive contract 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.

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AUSTRALIA

REPRESENTATIONS BY THE AUSTRALIAN GOVERNMENT REGARDING ENTRY OF AUSTRALIAN BUSINESSMEN INTO THE UNITED STATES

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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

Undated [Rec'd Nov. 30]

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.

From the British Embassy

Desire that question of entry of Australian businessmen into the United States be reopened, and inquiry whether the question 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.

AUSTRIA

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NEGOTIATIONS RESPECTING SubordinATION OF THE AUSTRIAN RELIEF LOAN TO A PROPOSED NEW AUSTRIAN LOAN

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1927 Aug. 30 (1508)

Sept. 20 (54)

From the Minister in Austria

Information that Austrian Government contemplates flotation 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 Government's desire that the competent U. S. law officers investigate 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.

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NEGOTIATIONS RESPECTING SUBORDINATION OF THE AUSTRIAN RELIEF LOAN TO A PROPOSED NEW AUSTRIAN LOAN-Continued

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1927 Sept. 20 (1532)

Sept. 24

Oct. 17 (1573)

Oct. 18

Oct. 18

Oct. 21

Oct. 28 (20)

From the Minister in Austria

Further details in connection with Chancellor's request communicated 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 Control 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 interpretation 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 Reparation 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 extend the time of payment of the Austrian relief debt, and Secretary'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 decided 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 suggested action.

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NEGOTIATIONS RESPECTING SUBORDINATION OF THE AUSTRIAN RELIEF LOAN TO A PROPOSED NEW AUSTRIAN LOAN-Continued

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1927 Oct. 29 (1585)

Nov. 28

Νον. 30 (1629)

Dec. 2 (66)

Dec. 6
(2423/70)

Dec. 8

Dec. 14

Dec. 14 (1656)

From the Minister in Austria

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.

To the Secretary of the Treasury

Transmittal, for information and comment, of copy of
Minister's despatch No. 1585, October 29.

From the Minister in Austria

Information that Austria is on the verge of abandoning requests 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.

From the Minister in Austria (tel.)

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 contemplated new Federal loan.

From the Austrian Minister

Inquiry whether the United States would be willing to enter into negotiations for the relief-debt funding, by which arrangement payments should not begin until 1943, at which time payment of the whole debt, principal and interest, should begin 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.

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.

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.

From the Minister in Austria

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.

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NEGOTIATIONS RESPECTING SUBORDINATION OF THE AUSTRIAN RELIEF LOAN TO A PROPOSED NEW AUSTRIAN LOAN-Continued

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1927 Dec. 23

Dec. 23

Dec. 28 (1664)

Dec. 28
(2531/70)

Dec. 29

1928 Jan. 7

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. S. 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 consenting 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 recommendation 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 intention 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 Treasury, 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 proposal.

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