864.51/601a: Telegram The Acting Secretary of State to the American Minister in Hungary (Roosevelt) [Paraphrase] WASHINGTON, July 24, 1931—1 p. m. 14. This morning the Hungarian Chargé called transmitting a very pressing message from his Government asking the United States to notify Italy, France, and Great Britain that we were favorably disposed toward an immediate 5 million-pound loan to Hungary. I explained that this Government has no control over its bankers and that we never had requested and never should request the bankers to make any specific loan. We obviously had no right, I added, to approach other governments along these lines, since we could not influence our own bankers. I told him that the outcome of the London Conference had been exactly what we hoped in putting the whole German situation in the bankers' hands and that I felt the Central Banks must deal with the Hungarian situation. The disappointment of the Chargé was great and he did not seem to understand fully despite my efforts to be as sympathetic as possible. I hope that you may find the opportunity to clarify our position to the Hungarian Government. 864.51/653 CASTLE Memorandum by the Secretary of State [WASHINGTON,] December 22, 1931, The Hungarian Minister called and told me he came on a very sad errand, that his country had at last been compelled to declare a moratorium on the transfers of its foreign loans. He handed me an aide-mémoire which showed the program (attached hereto as "A").* This aide-mémoire shows the payments which will be made and what will be done with the others, as follows: the League of Nations loan will be paid in foreign currency as before; of the other loans, the first category, composed of long term loans secured by special securities including Government Treasury Bonds issued in 1931 and those based on international conventions, will be paid to the extent that foreign currencies are available in Hungary, and the second category, composed of other long term loans, will not be paid in foreign currency but in Hungarian currency and will be deposited in the National Bank 8 See vol. 1, pp. 164 ff. 4 Infra. of Hungary; the Hungarian National Bank with the advice of the Councilor of the League of Nations will administer these sums; so far as short term loans are concerned, debtors will be provided with foreign currency enough to pay interest on them, and there will be an endeavor to reach a standstill agreement in regard to them for six months. The Minister seemed very despondent. He said his country had struggled very hard against great difficulties to pull itself out of its troubles since the War and had expected to reach safety, but that now this depression had come along and caused it to fail. He said this was almost entirely due to the depression in wheat as in other respects the country had done pretty well. H[ENRY] L. S[TIMSON] 864.51/653 The Hungarian Legation to the Department of State AIDE-MÉMOIRE The Hungarian Government's financial program provided for one year beginning the 23rd of December 1931. The League of Nations loan will be paid in foreign currency as before. Other loans. The first category-composed of long term loans assured by special securities, for instance the Government Treasury Bonds issued in 1931, and those which are based on international conventions, for instance, the Caisse Commune payments, to the extent that foreign currencies are available. The second category is composed of long term loans which do not belong to the first category. These will be deposited in the National Bank of Hungary in Hungarian currency (pengoes). The Hungarian National Bank in accordance with the League of Nations Councilor will administer these sums and consult the representative of the creditors appointed by them. As far as short term loans are concerned, in case commercial business makes it necessary, debtors will be provided with the necessary foreign currency to enable them to pay interest. The Government's intention is to reach six months "Stillhalte" agreements for short term loans. DECEMBER 22, 1931. IRAQ ASSENT BY THE UNITED STATES TO THE ANGLO-IRAQ JUDICIAL AGREEMENT OF MARCH 4, 1931 741.90g9 Judicial/6 The British Secretary of State for Foreign Affairs (Henderson) to the American Ambassador in Great Britain (Dawes)1 No. E 1920/38/93 [LONDON,] 22 April, 1931. YOUR EXCELLENCY: I have the honour to invite a reference to Lord Monteagle's letter No. E 751/245/93 of February 18th, 1929, to Mr. Atherton regarding the proposed new Anglo-Iraqi Judicial Agreement and the position of United States nationals in Iraq in judicial matters. 2. As Your Excellency is aware, the position of the nationals of the United States in judicial matters in Iraq is regulated by the Convention between the United Kingdom, Iraq and the United States, signed on January 9th, 1930,3 under Article 1 of which the application of the Anglo-Iraqi Judicial Agreement of March 25th, 1924, is extended to United States nationals. Article 6 of the Convention further lays down that no modification of the special relations existing between His Britannic Majesty and the King of Iraq, as defined in Article 1 (other than the termination of such special relations as contemplated in Article 7 of the Convention) shall make any change in the rights of the United States as defined in the Convention, unless such change has been assented to by the Government of the United States. 3. It was explained in Lord Monteagle's letter of February 18th 1929 that His Majesty's Government for the reasons set forth in that letter and in the memorandum which accompanied it, had decided in February 1929, to approach the Council of the League of Nations with a request that they should approve in principle the abolition of the Anglo-Iraqi Judicial Agreement of March 25th, 1924, and the institution of a uniform system of justice in its place; and that they should authorise His Majesty's Government in the United 1 Copy transmitted to the Department by the Ambassador in his despatch No. 1878, April 23; received May 2. Kingdom to prepare, for submission to the Council at a later session, detailed proposals in collaboration with the Iraqi Government. The Council, at its meeting on March 9th, 1929, granted to His Majesty's Government the general authorisation required. The draft of a new Judicial Agreement to replace the Agreement of 1924 was accordingly negotiated with the Iraqi Government and was eventually initialled at Bagdad on June 30th by the representatives of His Majesty's Government in the United Kingdom and the Iraqi Government, and submitted to the Council of the League at its Session of September 1930. The Council referred this draft Agreement to the Permanent Mandates Commission for examination at its November session, and that body reported to the Council that it had come to the conclusion that the new Agreement, while abolishing the special privileges granted to the nationals of certain foreign states under the Agreement of March 25th, 1924, seemed to offer to all foreigners in Iraq the essential guarantees for the proper dispensation of justice, and also an improvement in criminal procedure in favour of all persons in the country subject to Iraqi criminal jurisdiction. On January 22nd last the Council of the League approved the new Judicial Agreement in a resolution in the following terms: "The Council, considering the opinion submitted to it by the Mandates Commission to the effect that it sees no objection to the approval, subject to the consent of the powers concerned, of the draft of a new Judicial Agreement between the British Government and the Government of Iraq, initialled at Bagdad on June 30th, 1930, approves the terms of the Agreement of June 30th, 1930, subject to the consent of the powers whose nationals enjoyed privileges under the Agreement of March 25th, 1924". 4. The fourteen Powers concerned have now all signified their willingness to accept the new régime, and the Secretary-General of the League of Nations was accordingly informed on March 21st last that His Majesty's Government proposed forthwith to bring the new Agreement, which was signed in Bagdad by the High Commissioner for Iraq and the Iraqi Prime Minister on March 4th," into force as soon as possible. A copy of the new Agreement is enclosed herein. 5. I now have the honour to request that Your Excellency will inform your Government that His Majesty's Government in the United Kingdom of Great Britain and Northern Ireland desire to obtain the assent of the United States Government under Article 6 of the Convention between the United Kingdom, Iraq and the United States signed on January 9th, 1930, and of which ratifications were exchanged on February 24th, 1931 to the substitution of the Judicial Agreement signed on March 4th, 1931, for the Agreement of March "League of Nations Treaty Series, vol. cxxшII, p. 77. 25th, 1924, and to the application of the former to United States nationals in Iraq in the place of the existing régime. 6. In making this request to you, I have the honour to enclose herein a copy of an explanatory note in which the extent to which the position of foreigners in judicial matters in Iraq will be affected by the new Agreement is explained, together with an extract from a draft law amending the Bagdad Criminal Procedure Regulations, which gives effect to certain provisions in the new Agreement and in the note annexed thereto. In the opinion of His Majesty's Government the new Agreement will establish the position of nationals of all foreign states in Iraq in judicial matters, not only on an equal, but also on a firmer and more equitable, basis. I desire in particular to draw your attention to the fact that, as will be seen from the contents of the explanatory note enclosed herein, no United States national will, in practice suffer on account of the withdrawal of existing judicial privileges. I have [etc.] (For the Secretary of State) G. W. RENDEL 741.90g9 Judicial/4: Telegram The Secretary of State to the Ambassador in Great Britain (Dawes) WASHINGTON, April 25, 1931-2 p. m. 104. The Department has received unofficially a copy of a letter, dated March 21, 1931 from the British Government to the Secretary General of the League of Nations regarding the signature and bringing into force in the near future of a new judicial agreement between that Government and the Government of Iraq. This communication refers to a resolution adopted on January 22, 1931, by the Council of the League, approving the terms of the Anglo-Iraqi Judicial Agreement of June 30, 1930, "subject to the consent of the Powers whose nationals enjoy privileges under the Agreement of March 25, 1924." The letter goes on to state that "the fourteen Powers in question have now notified to His Majesty's Government their assent to the proposed agreement . . . and . . . the necessary steps will now be taken to bring the new regime into force as soon as possible." The consent of this Government to the proposed new agreement has never been requested. Under the circumstances the Department finds it difficult to understand the statement in the above mentioned letter to the effect that "the fourteen Powers in question" have given their consent to the new agreement. For two reasons the United States was undoubtedly one of the Powers whose consent should have *Enclosures not printed. |
