Evening star., 1928-03-21
PRESIDENT URGES
AID FOR AUSTRIA
Asks Congress to Subordi-
nate Lien to Allow Nation to
Get Reconstruction Loan.

Congress has been asked by President
Coolidge to subordinate the lien of the
United States against Austria. in order
10 allow that country 70 float a new
loan for reconstruction enterprises.
In 3 special message yesterday the
President outlined the financial relation
between the United States and Austria,
and recommended not only that Austria
he allowed 10 float the new loan. but
also that the Secretary Of the Treasury
be given uthority. in legislation.
eventually to conclude an agreement for
the settlement Cf AuStriaS debt TO the
United States.
A report from Secretary of the
Treasury Mellon was transmitted by
the President, explaining the obliga-
lions which the United States now holds
against Austria.
MFR. MeIIon's Statement.
Mr.. Mellon said in the report that in
1920 the United States furnished
Austria with $24 o55 70S 90 for the pur-
pose Of purchasing food. while european
governments provided sos, 100000 adGi-
y,olai All Of these food leans were
suborc,nated as liens IL 1928 70 enable
Austria 70 borrow $I25.0o0,000 for re-
construction. and the country now de-
S,res 70 float new loan Of about $780,
0oo, zoo 10 complete its enterprises.
The proceeds would be applied 10
fhe repair Improvement and re-eQuip
nlent ot the Austrian railway, telegraph
and telephone systems" Secretary Mel
Ion explained The lien enjoyed by
the relief bonds makes II difficult, II
not impossible for Austria to obtain the
necessary funds for these purposes. The
Austrian government has requested the
governments holding Austrian relief
bonds and the Reparation Commission
(Which controls the collection OF war
claims against AuStvial TO subordinate
their liens in favor OF the new loan for
s period not exceeding 80 years.
Other Governments Comply.
'TThe Treasury is advised by the De-
par-nent Of States that all Of the for
eigu governments concerned have al
ready informed the Austrian govern
ment 70 the effect that they are willing
10 subordinate their liens. providing all
of the governments IN similar posi-
ton do likewise. Since unani-
NOUS consent Is required. failure OF the
United States 70 join the other govern
rnentS concerned in granting AuStria's
request would constitute q barrier to
the floating Of the new reconstruction
loan"
The action proposed by the Secre-
tary o. the Treasury has my approval"
the President noted IN his communica-
ton 7 recommend that the Congress
enact the legislation necessary TO en-
able the United States to Join with
the other relief creditors in permitting
Austria 70 obtain the additional capital
urgently needed for continuing its eco
MCu.ic reconstruction and to authorize
the Secretary OF the Treasury to con-
clude an agreement for the settlement
OF Austria debt 10 the United States"
Hits Proposed Rumanian Loan.
An appeal to Secretary Kellogg to
dlsapprove OF any loan to RuTnania
vas made yesterday By Representative
Celler. Democrat. New York, with the
argument that such action should be
taken in the general public interest
and upon the grounds Of high mo-
rality."
'Rumania." the New Yorker said In
his letter 70 the Secretary Of State.
running true TO It's history, has made
Of Itself during the last two years. as
result Of pogrcns and n1assacres OF
minority populations, pariah among
ra-k1s"