Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-01-17
BOND DEAL LEAK
HIT BY ST|MSON
Secretary of State Clashes
With Johnson Over U. S.
Secrets"
Continued From First Page)

CONTINUED From First Page)
established practice of making public
to the fullest extent the policies pur-
sued by the department and every
agreement of whatever character in the
conduct Of the foreign relations of this
Government.
. ut has been and will continue to b.,
however. the policy of the State De-
partment under my administration TO
keep as confidential the reports which
1t receives from its representatives IN
foreign countries regarding the cur
rent exchange of views which they
have with officials of those countries
and the frank opinions which these
representatives are encouraged to Tor
ward to the department on all matters
OF interest to this Government. 1t must
be obvious to every thoughtful member
OF the American public that IN the
normal discharge of their duties our
Ambassadors and Ministers carry on
many frank and friendly discussions
with the officials of the countries to
which they are accredited. 1t must also
be obvious that it is their duty ana
practice to forward to the department
in their dispatches and cables their
personal and confidential opinions and
comments regarding all matters relat-
ing to the intercourse between tbs two
governments. A publication Of these
reports would make impossible the ade-
uuata and effective conduct OF our
foreign relations and it has never been
the policy of this Government so FAR as
] know to consent to their publcatlon
81 shall consider further whether
there are any documents or parts OF
documents in connection With MT:
Whites testimony the publication OF
which would be in accord with the
departments policy.
johnson replied with statement say
ing the department was in "a strange
and anomalous situation"
He charged that dispatches in which
our people are vitality interested are
read by department of our Govern
ment to international bankers and
denied to the rest of our people"
johnson said the State Departments
offer to furnish the correspondence in
confidence to the committee would pre-
clude public discussion of the informa-
ton this revealed.
Full Statement Given.
Johnson's statement follows:
II do not propose that any contro-
versy over the production of documents,
however important that subject may
be, shall divert us from the very much
more important subject Of the IMPOSE
ton upon the American public by in
sernational bankers of foreign secur-
tiles, and the consequent tremendous
financial losses of our people. The &C
tons of international bankers in I'M
poverishing the American people are
under investigation, and no red herring
across the trail, no matter whence 1t
enanates, shall divert us.
THE American public, however,
should know just what is in dispute at
present with the State Department, and
here are the facts: Yesterday, at his
own request, and voluntarily, Under
secretary of State White, without the
slightest interruption, was permitted
at great length to present his views.
In the course of his statement, OF his
own volition he recited the contents
of certain dispatches received by the
State Department from the representa-
tive of the United States Government
at Bogota, Colombia.
Some of these dispatches thus volun-
tarily recited by him contained refer
ences to the Barco concession. These
dispatches, in some instances, were
read, he stated, in substance to the
representatives of international bank
instance, with the exception of a brief
part Of the dispatch, which did not
relate to the subject matter, a tele-
gram from our representative at Bo-
gotta was read verbatim to the repre-
sentatives of international bankers in
New York.
Takes Refusal as Insult.
ut is true the Undersecretary OF
State said he read these in confidence,
but he stated at the same time that
thev were to be transmitted to the
bankers themselves, and he voluntarily
recited their contents publicly to the
committee After he had voluntarily
recited these dispatches, he was asked
TO produce them. He declined to 90
so. because he would not submit their
contents for publication, and yet he
was reciting their contents in the pres
ence Of the combined representatives
of the press of the Nation. who were