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  1GERMANY
INSISTENCE BY THE UNITED STATES UPON ITS RIGHT TO PARTICIPATE IN THE DISTHIBUTION
OF GERMAN REPARATION PAYMENTS UNDER THE DAWES PLAN1
462.00 R 296/176: Telegram
The Secretary of State to the Ambassador in France (Herrick)
[Paraphrase]
WASHINGTON, February 28, 1924—8 p. m~.
 58. L—50, for Logan.2 From the information in the hands of the
Department
on the proposed basis of report of the first committee,3 it appears that
American rights may be adversely affected in two particulars, viz., reimbursement
of Army costs and payment of claims adjudicated by the Mixed Claims Commission
under the agreement of August 10, 1922, with Germany.4
 The Army Costs Agreement of May 25, 1923,~ was negotiated and signed on
the assumption that German reparation payments would, in some measure, continue
to be made. A moratorium was thought of only in connection with a loan or
anticipatory payments by Germany and in those circumstances the Allies undertook
to communicate with this Government for the purpose of reaching an agreement
which would not cause any prejudice to the Government of the United States.
If now a moratorium is recommended, and if current army costs are exempted
from it, an arrangement should also be made for excepting a certain definite
amount as an annual payment on account of American Army costs, say a twelfth
of the total under the agreement of May 25. The equity of the position of
1For previous correspondence concerning German reparations, see Foreign Relations,
1923;, voL II, p. 46.
For reports of the committees of experts, see Great Britain, Cmd. 2105:
Reports ot the Ecepert Committees Appointed by the Reparation Commission;
also "Report of Committees of Experts to Reparation Commission,"
Federal
Reserve Bulletin, May 1924. For proceedings of the London Conference and
texts of agreements adopted, see Great Britain, Cmd. 2270, Miscellaneous
No. 17 (1924): Proceedings or the London Reparation Conrerence July and August
1924. The agreements are also printed in Great Britain, Omd. 2259, Treaty
Series No. 36 (1924).
2James A. Logan, Jr., American unofficial representative on the Reparation
Commission.
* International committee of experts appointed by the Reparation Commission
to report on Germany's budget and currency; see telegram no. 535, Dec. 21,
1923, from the Ambassador in France, Foreign Relations, 1923, vol. ii, p.
108.
Ibid., 1922, vol. ii, p. 262.
' Ibid., 1923, vol. vi, p. 180.