that the proposals afford a basis for discussion acceptable to the Allied Governments. This Government therefore again expressing its earnest desire for a prompt settlement of this vital question strongly urges the German Government at once to make directly to the Allied Governments clear, definite and adequate proposals which would in all respects meet its just obligations. HUGHES 462.00 R 29/720: Telegram The Commissioner at Berlin (Dresel) to the Secretary of State [Paraphrase] BERLIN, May 3, 1921—noon. 476. Made communication this morning to Simons from context of your no. 808. He did not comment other than to state that it appeared to make an end of all intervention of United States and indicated that we had ranged ourselves definitely on Allies' side. Simons seemed much perturbed. DRESEL 462.00 R 29/735: Telegram The Commissioner at Berlin (Dresel) to the Secretary of State BERLIN, May 5, 1921-4 p.m. 484. Following is translation of a memorandum dated May 4th and handed me today by the Foreign Office which will be published tomorrow: "The German Government received the memorandum of the Government of the United States on May 3rd from Mr. Dresel and Germany appreciates greatly the serious efforts of the United States Government to find an amicable solution of the reparations question, this great and vital question of Germany and the whole world. She regrets that the American Government has not been able to perceive in the German proposals which have been transmitted a basis for negotiations acceptable to the Allied Governments. The German Government in agreement with the German people is firmly decided now as before to satisfy up to the limits of the capacity of Germany the obligations to reparations defined by the Versailles Treaty. Influenced by this point of view, the German Government had already at the conference of experts in Brussels, which had the purpose of creating objective bases for the capacity of Germany, given the most complete insight into the economic and financial situation of Germany. Germany would also at the present moment gladly have been prepared to follow the advice of the American Government and make immediate and direct proposals regarding the reparation question to the Allied Governments as recommended in the American memorandum. Unfortunately however following most careful consideration of the advice given the conclusion had to be reached that the present situation made it impossible to work out new proposals which could have satisfied the memorandum according to the views of the Allies. The difficulty of an agreement is still to be found in the divergent estimation of German industry of which the capacity according to article 232 of the peace of Versailles forms the limit of Germany's obligations. The German Government is not in a position from its own knowledge to determine the capacity of Germany as such capacity is dependent on the development of the basis of German economic life and on the cooperation of Germany with the community of nations. The German Government believes that it would be added dishonor if it made engagements which would soon show themselves unfulfillable. By such offers the general feeling would take over the responsibility for all evil which might result later from the impossibility of performance. The elaboration of new proposals was again made difficult to the German Government by the fact that in the meantime the Reparation Commission in accordance with its powers resulting from the Treaty of Versailles had determined the amount of the German reparation debt and that we had to expect immediate communications on the subject. The German Government will further do all that is possible in order to come to an agreement on the reparation question. It must however emphasize that one nation alone has not the power to make amends for the damage caused by the war and that such reparation is only possible by means of free and unrestrained cooperation of all civilized nations. Germany is willing in this to assume the greatest burden. It relies however on assistance of other countries and not in the least degree on that of the United States of America." DRESEL 462.00 R 29/762 Resolution of the Supreme Council of the Allied Powers, London, May 5, 1921 44 The Allied Powers, taking note of the fact that in spite of the successive concessions made by the Allies since the signature of the Treaty of Versailles and in spite of the warnings and sanctions agreed upon at Spa and at Paris, as well as of the sanctions announced in London and since applied, the German Government is still in default in fulfilment of obligations incumbent on that date [upon it] under the Treaty of Versailles as regards; (1) Disarmament (2) The payment due on May 21st [May 1st], 1921 under article 235 of Treaty, which the Reparation Commission has already called upon it to make at this date. "Text received in the form of an undated memorandum from the British Embassy; corrections in brackets added from a contemporary printed text (file no. 763.72119/11158). (3) The trial of war criminals as further provided for by the Allied Notes of February 13th and May 7th, 1920, and (4) Certain other important respects notably those which arise under articles 264, [to] 267, 269, 273, 321, 322, 327 of the Treaty decide: a) To proceed forthwith with such preliminary measures as may be required for the occupation of the Ruhr Valley by the Allied forces on the Rhine in the contingency provided for in paragraph D of this note. b) In accordance with article 233 of the Treaty to invite the Reparations Commission to prescribe to the German Government without delay the time and basis for securing and discharging the entire obligation incumbent upon that Government and to announce their decision on this point to the German Government at latest on May 6th. c) To call upon the German Government within a period of six days from the receipt of the above decision categorically to declare its resolve: (1) To carry out without reserve or condition their obligations as defined by the Reparations Commission. (2) To accept and provide without reserve or condition the guarantees in respect of those obligations demanded by the Reparation Commission. (3) To carry out without reserve or delay the measures of military naval and aerial disarmament notified to the German Government by the Allied Powers in their note of January 29th, 1921, those overdue being completed at once and the remainder by prescribed dates. (4) To carry out without reserve or delay the trial of war criminals and other unfulfilled portions of Treaty referred to in the first paragraph of this note. d) Failing fulfilment by the German Government of the above conditions by May 12th to proceed to occupy the Valley of Ruhr and to take all other military and naval measures that may be required. Such occupation will continue so long as Germany fails to comply with the conditions summarised in paragraph (c). 462.00 R 29/768 The British Ambassador (Geddes) to the Secretary of State No. 359 WASHINGTON, May 11, 1921. SIR: On instructions from my Government, I have the honour to inform you that the German Ambassador in London this morning handed to the Prime Minister, as President of the recent meeting of the Supreme Council in London, a note couched in the following terms, in reply to the resolution of the Allied Powers of May 5th. It will be observed that this note conveys an unconditional acceptance of the Allied terms. "Mr. Prime Minister: 66 "In accordance with instructions just received I am commanded "by my Government, in accordance with the decision of the Reichstag and with reference to the resolution of the Allied "Powers of the 5th of May 1921, in the name of the new German "Government to declare as desired the following: 66 "The German Government is resolved (1) to carry out without "reserve or condition their obligations as defined by the Reparation "Commission, (2) to accept and to carry out without reserve or "condition the guarantees in respect of these obligations prescribed by the Reparation Commission, (3) to carry out without reserve "or delay the measures of military, naval and aerial disarmament "notified to the German Government by the Allied Powers in their "note of January 29th 1921, those overdue being completed at once "and the remainder by the prescribed dates, (4) to carry out without reserve or delay the trial of the war criminals and to execute "the other unfulfilled portions of the treaty referred to in the first paragraph of the note of the Allied Governments of the 5th of "May. I ask the Allied powers to take note immediately of this "declaration. 66 66 (6 etc. etc. I have [etc.] (Signed) Sthamer." (For the Ambassador) H. G. CHILTON ASSENT OF THE CONFERENCE OF AMBASSADORS TO THE CONSTRUCTION OF A DIRIGIBLE IN GERMANY FOR THE UNITED STATES $11.348 Z 4/11 The Chargé in France (Whitehouse) to the Secretary of State No. 2744 PARIS, July 8, 1921. SIR: Referring to my despatch No. 2721 of July 1, 1921,45 I have the honor to forward herewith three copies, one of which is certified, of the Protocol signed on June 30, 1921, by the President of the Conference of Ambassadors and the German Ambassador in Paris relative to compensation for destroyed Zeppelins. I have [etc.] SHELDON WHITEHOUSE 45 Not printed. [Enclosure-Translation] Protocol of Agreement between the Principal Allied and Associated Powers and Germany Regarding Compensation for Destroyed Zeppelins, Signed June 30, 1921 As compensation for the seven dirigibles which Germany, by virtue of Article 202 of the Treaty of Versailles, should have delivered to the Principal Allied and Associated Powers and which were destroyed on June 23 and July 26, 1919, respectively, the undersigned, having been duly authorized: Mr. Jules Cambon, Ambassador of France, President of the Conference of Ambassadors, in the name of the Principal Allied and Associated Powers, of the one part and Doctor Mayer, Ambassador of Germany at Paris, in the name of the German Government, of the other part, Have agreed on the following: 1-Germany shall deliver, in good airworthy condition to the Inter-Allied Aeronautic Commission of Control, the German diriggibles, Bodensee and Nordstern, to replace two of the dirigibles destroyed; 2-The plans of all the dirigibles destroyed shall be delivered to the Inter-Allied Aeronautic Commission of Control, which shall determine, in accordance with the said plans, the value of the five dirigibles which are not replaced as above. The Allied and Associated Powers shall proceed to divide among themselves this sum which the German Government undertakes to pay them in gold marks. The German Government, nevertheless, shall have the right with respect to each one of the Allied and Associated Powers, but on condition that such Power consent thereto, to substitute, under conditions accepted by the Power concerned, instead of the payment in cash, the delivery either of a civil type of dirigible to be constructed or any aeronautical material which the said Power may indicate to the German Government. Done in a single copy at Paris, June 30, 1921. JULES CAMBON DR. MAYER |