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United States Department of State / Foreign relations of the United States diplomatic papers, 1937. The British Commonwealth, Europe, Near East and Africa

Germany,   pp. 319-405 PDF (32.6 MB)

Page 357

mation of the agreement of May 19 represented a very substantial
saving to the German Government.
  The German Agent replied to this in a jocular way that of course
this was a matter that the two Agents were in disagreement on and
suggested that from his study of the awards of the Commission even
if we were successful in the sabotage claims the awards would prob-
ably be materially under the amount claimed. In support of this he
pointed particularly to the situation in the Lusitania claims, where
he said the awards in most instances were materially under the
amounts claimed. In reply to this I said that of course claims for
damages arising out of deaths were on an entirely different basis
from claims for damages to property, and said that in our ship claims,
that involved property damage only, we in many instances recovered
substantially the entire amount claimed. With particular respect to
the sabotage claims I said that in the case of the largest single claim
our damages are made up of the value of the property destroyed in
substantially the amount as fixed by the Interstate Commerce Com-
mission in its valuation of railroad properties; that other large items
of this claim represented amounts recovered by various injured parties
in court proceedings from the railroad company; that another large
claim represented the contract price for the property destroyed; and
that in so far as the underwriters were concerned, whose claims repre-
sent a substantial item, the damages are merely the out-of-pocket
losses of the various underwriters after making deduction for the
foreign re-insurance recovered. In this situation I said that I felt
confident that if we were eventually successful we would recover
substantially the amounts claimed as very few of the items going to
make up these amounts are capable of any material reduction.
  The German Agent said that he would call Mr. Bonynge in New
York and advise him of the situation. He thought it was preferable
that he talk directly with Mr. Bonynge in order to avoid any mis-
understanding as to just what he was saying. I told him this was
perfectly satisfactory to me and suggested that he might call Mr.
Bonynge over my telephone. The German Agent, however, said
that he had several notes that he would like to refer to in his talk
with Mr. Bonynge and would call him up as soon as he returned to
his office. The German Agent just called me back and said that on
returning to his office he found that it would be impossible for him
to call Mr. Bonynge before sometime between 3: 30 and 4: 00 p. m.,
Washington time, as lie found it necessary to leave the office
  The German Agent then told me that he had had a telephone inquiry
from the American Commissioner in relation to the issuance of sub-
poenas in case the agreement of May 19 was not acceptable to the

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