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of the Commonwealth, and I will welcome any advice you may be kind enough to offer, with a view to bringing about the much-desired change in the status of Australian citizens who are so vitally affected by this matter. I have [etc.]

Hugh R. DENISON

711,412/22

The Secretary of State to the British Ambassador (Howard)

WASHINGTON [, February 26, 1927.] EXCELLENCY: I have the honor to acknowledge the receipt of a communication, dated January 14, 1927, from the Honorable Hugh R. Denison, Commissioner of Australia, relating to the entry of Australian citizens into the United States, and to a recent discussion of the subject at the Department. Mr. Denison sets forth clearly the present status of Australian business men desiring to extend their commercial affairs in the United States and points out the restrictive features of the Immigration Act of 1924.2

He desires to learn whether (a) the Government of the United States is able, and would be willing to extend to citizens of the Commonwealth of Australia the privileges granted to British citizens under the Treaty of 1815, or (b), in the event of it not being possible to effect such an extension under that Treaty, would consider the negotiation of a special treaty with the Commonwealth for a similar purpose.

The Department considers that the Treaty of 1815 with Great Britain relates to trade and commerce with British possessions in Europe and that its provisions are not applicable to any of the component parts of the British Empire overseas.

As to the possibility of the negotiation of a treaty with the Commonwealth of Australia for the purposes defined in Mr. Denison's communication, I beg to invite your attention to the wording of Section 3 (6) of the Immigration Act of 1924, which reads as follows: "an alien entitled to enter the United States solely to carry on trade under and in pursuance of a present existing treaty of commerce and navigation.”

That provision became effective on May 26, 1924, and hence would not apply to a treaty concluded subsequently. In view of this situation I am not prepared at present to discuss this aspect of the subject but the Department is deeply interested and I shall be glad to communicate with you at a later date in regard to it. Accept [etc.]

FRANK B. KELLOGG

*43 Stat. 153.

711.472/7

The British Embassy to the Department of State 8 MEMORANDUM RE ENTRY OF AUSTRALIAN BUSINESS MEN INTO THE

UNITED STATES

On December 30, 1926, the Prime Minister of Australia, The Right Honourable S. M. Bruce, had the honour of an interview with the Secretary of State at Washington, when the question of the disabilities attaching to the entry of Australian business men into the United States outside of the quota was discussed.

The Prime Minister was accompanied at that interview by His Excellency the British Ambassador and the Commissioner for Australia in the United States.

At the close of the interview the Honourable the Secretary of State requested that a statement of the position from the Australian point of view should be prepared and sent to him by the Commissioner for Australia.

Under date of January 14, 1927, a communication was duly forwarded to the Secretary of State, setting out clearly the position existing at present, and asking (a) whether the Government of the United States of America is able and would be willing to extend to citizens of the Commonwealth of Australia the privileges granted to British citizens under the treaty of 1815, or (b) in the event of it not being possible to effect such an extension under that treaty, the Government of the United States would be agreeable to negotiate a special treaty with the Commonwealth for a similar purpose.

Subsequent to receipt of this letter the British Ambassador was given to understand semiofficially that the matter was under consideration, but that the Department was not in a position to give a definite opinion thereon until it had been ascertained whether Congress would be prepared to amend Section 3, Clause 6. of the United States Immigration Act of 1924.

Under date of February 18 [26], 1927, a communication was sent from the Department of State, Washington, intimating: (1) that the Department considered that the treaty of 1815 with

Great Britain relates to trade and commerce with British possessions in Europe, and that its provisions are not applicable

to any of the component parts of the British Empire overseas; (2) that as regards the possibility of the negotiation of a treaty with

the Commonwealth of Australia for the purposes defined in the communication of the Commissioner for Australia, dated January 14, Section 3, clause 6. of the Immigration Act of 1924 did not apply to a treaty concluded subsequently.

* Left at the Department by the British Ambassador and the Australian Com. missioner Nov. 30, 1927.

It was further added that in view of this situation the Secretary of State was not prepared at that time to discuss that aspect of the subject, but that the Department was deeply interested and would be glad to communicate with the British Ambassador at a later date in regard to it.

Since then no further communications appear to have passed between the parties in reference to this matter, but a letter has now been received by the Commissioner for Australia from the Prime Minister of the Commonwealth, asking that this matter should be reopened in view of the fact that the officials of the State Department appear to recognise that Australia in this matter is under a disability that should be removed as early as possible.

It should be noted that the annual quota for Australia, which is at present the only means by which Australian business men may enter the United States for any extended period in connection with their business, only numbers a hundred and twenty-one and is at the present time filled by applicants for at least two years ahead.

It should be further noted that business between the United States of America and Australia is steadily increasing from year to year, and now amounts to very considerably over 250 million dollars per annum.

There is no restriction of any kind on American business men enter. ing the Commonwealth of Australia and staying in that country as long as may be necessary for them to conduct and complete their business; and at the present time there are considerably over one thousand American citizens resident in the Commonwealth of Australia taking part in such business relations.

It is now desired to learn whether there is any possibility of this matter being brought before Congress during the session about to commence, with a view of obtaining some amendment of the Immigration Act of 1924 which will permit Australian business men to enter for bone fide business purposes without restriction as to the length of their stay in the United States, and also whether any further information is required from Australia in connection with this matter.

AUSTRIA

NEGOTIATIONS RESPECTING SUBORDINATION OF THE AUSTRIAN

RELIEF LOAN TO A PROPOSED NEW AUSTRIAN LOAN 1

863.51/838

The Minister in Austria (Washburn) to the Secretary of State No. 1508

VIENNA, August 30, 1927.

[Received September 19.) Sir: In closing my despatch No. 1258 of December 30th, 1926,” I observed, I have the honor to report, that I anticipated that during the second half of 1927 the Federal Government would seek to float another loan for strictly productive investment purposes. This prophecy is now in the process of fulfillment. I do not cite it as an evidence of perspicacity. The facts upon which it was based were more or less common property.

Before the Austrian Government can contract a new federal loan or pledge its revenues for such a loan, the consent of three organs is necessary, to wit: (1) The Austrian Control Committee, made up of representatives

of the States guaranteeing the external reconstruction loan of

1922 and 1923; (2) The Reparation Commission; (3) The States having prior liens on Austria because of relief credits,

among whom is the United States. There have been persistent rumors that the Chancellor will go to Geneva to attend the September League meeting in connection with the new loan. He tells me today that the rumor is unfounded. He at no time has considered such a possibility. He is going to Germany very shortly to deliver some lectures, to be absent about a week, but Switzerland is not on his itinerary. Dr. Schüller, of the Foreign Office, who is now in Switzerland on leave, will be in Geneva and it is considered quite probable that he will undertake to discuss the matter of a new federal loan with the Financial Committee of the League and seek to enlist its coöperation or goodwill. The Austrian Control Com

For previous correspondence regarding American participation in Austrian relief, see Foreign Relations, 1920, vol. I, pp. 235–295 passim, and ibid., 1922, vol. I. pp. 613 ff. Not printed.

442

2

mittee will meet in the middle of October in London and there the serious work will really begin. Minister of Finance Kienböck will be on hand. The Chancellor tells me that he is not yet decided whether he will go or not.

Assuming that the Control Committee will be sympathetic, as it is hoped, the next appeal will be to the Reparation Commission and to the relief credit States. In my despatch No. 1037 of May 10th, 1926,9 I enclosed the Joint Resolution of Congress, approved April 6th, 1922,- authorizing for a period not to exceed twenty-five years the extension of the time for the payment of the principal and interest of the debt incurred by Austria for the purchase of flour from the United States Grain Corporation. I also enclosed the notice of the action of the Secretary of the Treasury pursuant to the authority conferred under this Resolution and the relevant Decision of the Reparation Commission, No. 2400. In this connection the question may presently arise as to what affirmative action must be taken by the United States as one of the relief credit nations in order to facilitate a new Austrian federal loan. In the event it should be deemed advisable to take any action whatever, will a new enabling act of Congress be necessary or may the Secretary of the Treasury, under authority of the Joint Resolution herein-before referred to, subordinate the lien of the Austrian Relief Bond Series B of 1920, issued to and held by the United States of America on account of food purchased from the United States Grain Corporation for relief purposes, to a new Austrian federal loan providing said new loan matures within the twenty-five year period mentioned in the Joint Resolution, No. 460 of April 6th, 1922? I may say that it is proposed that the new loan shall mature within this period just mentioned.

As to the amount of the new loan, assuming that the necessary permission can be obtained, I find on reference to my despatch No. 1076 of June 16th, 1926, that an additional loan of 200,000,000 schillings was then contemplated. The new investment program is more ambitious. It is proposed not only to continue the electrification of the railroads, which is now underway, and the further extension of underground cables for telephones, but also to reconstruct federal public highways, which are in a bad state of repair, and to extend quasi-public utility agricultural enterprises, such as dairies. For this program, the Chancellor tells me that it is hoped to secure a new loan approximating ninety million dollars. The details will be worked out between now and the middle of October for presentation to the Austrian Control Committee and as soon as available I will forward them to the Department.

“Not printed. 42 Stat. 491.

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