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people, but inside of 60 days we raised a fund by popular subscription of more than $1,000,000. This, however, was just a start. We decided to hold our exposition in Balboa Park, a 1,400-acre tract of land practically in the heart of the city. We had a double purpose in mind in deciding on this location: First, because we could vote bonds for permanent park improvement, whereas we could not vote bonds for exposition purposes; and, secondly, because the wonderful group of buildings which we erected and which were designed by the late Bertram Goodhue, and the trees and shrubs which we planted around these buildings would remain as a permanent legacy.

It is this group of buildings which have been completely restored in every detail that we are using as a nucleus for the California Pacific International Exposition, which will open on the 29th day of May 1935 and continue for a period of 10 months.

The purpose of this exposition, as stated in the resolution (H. J. Res. 94) which I have introduced, is for the purpose of inspiring national confidence and a higher appreciation of American institutions, stimulating business and industry, assisting the Government in bringing a more abundant life to its people, creating understanding among nations and in commemoration of the four hundredth anniversary of the discovery of the Pacific Southwest by Francisco Vasques de Coronado.

Another thought which prompted the citizens of San Diego to restore this outstanding group of Spanish colonial architecture was for the purpose of giving employment to many of those who were on the relief rolls. As a matter of fact, for months past we have had in the neighborhood of 2,000 men at work on the exposition project. It has inspired new hope and restored confidence among our people.

As evidence of that, we raised a fund for operation purposes of over $700,000, which oversubscribed our goal of $500,000 by 40 percent.

This resolution which I have introduced not only asks for Federal recognition, so that we might officially invite foreign nations to participate, but it carries with it an authorization for an appropriation of $350,000. Of this amount, $125,000 would be used in the construction of a reinforced concrete building, as shown by the architect's drawing, which I have here; and the balance for the installation and maintenance of a Government exhibit.

I withheld introducing this resolution until Mr. Davidson, who is chairman of the board of our exposition, and I could present the matter to President Roosevelt for his consideration, as we did not wish to interfere with any of his plans for economic recovery. But this project apparently ties in to his program and he exhibited real interest and enthusiasm. He told us to go ahead and even volunteered to call up Judge McReynolds, chairman of your committee, which I understand he did.

We have also contacted Secretaries Cordell Hull and Henry A. Wallace, both of whom have been very cooperative and helpful.

We are extremely anxious to secure Federal recognition as quickly as possible, for we have so little time between now and the 29th day of May. Therefore, we will deeply appreciate early and favorable consideration.

Mr. Davidson is present and will be glad to answer any questions that you desire to ask and furnish more detailed information. Respectfully submitted.

Geo. BURNHAM. For the information of the House it is here stated that in response to a request for recommendations and advice in regard to this resolution, sent on January 18, 1935, to the Secretary of State by the clerk of the committee, the Honorable Cordell Hull, Secretary of State, under date of January 25, 1935, addressed to the chairman the following communication:

DEPARTMENT OF STATE,

Washington, January 25, 1935. The Honorable Sam D. McREYNOLDS,

Chairman Committee on Foreign Affairs, House of Representatives. MY DEAR JUDGE McREYNOLDS: I desire to acknowledge the receipt of a letter dated January 18, 1935, from the clerk of the Committee on Foreign Affairs of the House of Representatives, enclosing a copy of House Joint Resolution 94, which, among other things, would authorize an appropriation of $350,000 for the expenses of participation by this Government in the California Pacific Inter

national Exposition, to be held at San Diego, Calif., in 1935 and 1936, and requesting a report thereon.

I may say that, considering the matter from the standpoint of this Government's international relations, there would appear to be no objection to the passage of this resolution, although, in view of the fact that such little time remains before the exposition is to open, I am inclined to suggest that the invitations to foreign governments to participate therein be limited to such countries as are not too distant from the United States and which, therefore, might reasonably be expected to return a favorable reply.

With respect to the question of the desirability of appropriating the funds necessary for this Government's participation in the exposition, I should not like to be understood as making any recommendations one way or the other, since this question is one which it seems to me concerns other departments of the Government more directly than it does the Department of State. Sincerely yours,

CORDELL HULL. O

8. Repts., 74-1, vol. 117

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Mr. Pittman, from the Committee on Foreign Relations, submitted

the following

REPORT

(To accompany S. 1896)

The Senate Committee on Foreign Relations, having had under consideration S. 1896, to provide for interest payments on American embassy drafts, report the same without amendment and recommend that it do pass.

For the information of the Senate, there is appended hereto and made a part of this report, the message of the President of the United States, under date of February 12, 1935, together with the report from the Secretary of State, dated February 11, 1935, to the President, which message and report are respectively as follows: To the Congress of the United States:

I commend to the favorable consideration of the Congress the enclosed report from the Secretary of State, to the end that legislation may be enacted to authorize an appropriation of not exceeding $44,403.15 for the payment of interest on funds represented by drafts drawn on the Secretary of State by the American Embassies in Russia and Turkey and transfers which the latter undertook to make by cable communications to the Secretary of State during the period from 1915 to 1920, in connection with the representation by those embassies of the interests of certain foreign governments and their nationals.

FRANKLIN D. ROOSEVELT. TAE WHITE House, February 12, 1935. (Enclosure: Report.)

The PRESIDENT: On December 10, 1931, the President recommended to Congress the authorization of an appropriation of $44,446.05, for the payment of interest on drafts drawn on the Secretary of State during the period from 1915 to 1920 by the American Embassies in Russia and Turkey and interest on the deferred payment of certaịn cable transfers from the latter during that period.

The facts prompting that recommendation to Congress were set forth in a communication of December 10, 1931, from the Secretary of State to the President, which was printed as Senate Document No. 18, Seventy-second Congress, first session, a copy of which is attached hereto.

Briefly, the facts in the cases of the drafts were the following: At the beginning of the World War, this Government took over the representation in St. Petersburg of the interests of the Governments of Great Britain, France, and Italy, and, in Constantinople, of these same Governments and also of Russia. In connection with these representations, the American Embassies in Russia and Turkey drew the drafts now in question against a fund previously established by Congress. When these drafts reached Washington, however, that fund had been exhausted and, consequently, a considerable time elapsed before the drafts were actually paid. Meanwhile, the purchasers of the drafts, abroad, suffered loss of interest.

In the matter of the cable transfers, the facts are, briefly, that the money in question was deposited with the American Embassy at Constantinople on the understanding that it would be used by the Embassy there in connection with the same representation services to foreign governments, and that a corresponding amount would be paid in the United States to indicated transferees. "It was impossible, however, to make the corresponding payments in this country at that time because of the exhaustion of the fund above mentioned.

There was, therefore, a consequent interest loss to the depositors.

The American representatives abroad were fully authorized to draw the drafts in question. The drafts were bought in good faith by the foreign nationals and, although there was considerable delay in presenting the drafts for payment in Washington, it is only the loss of interest after the date of presentation for which claim has been made. Such loss of interest appears clearly to have been due to failure on the part of this Government to provide the necessary funds to take up the drafts when they were presented. The consequences of such delay cannot, therefore, either in equity or justice, be allowed to rest upon those who purchased the drafts in good faith from the agents of this Government who were authorized to draw them.

The same is true, in a general way, with respect to the loss of interest on the cable transfers. There were delays of but 2 and 3 days, respectively, in the delivery of the cables advising this Department of the deposits with the American representatives abroad and the depositors do not appear to have been advised that the corresponding payments could not be made for their account in this country. Meanwhile, the moneys deposited were used by the American Embassy at Constantinople.

Congress did not act favorably upon the above-mentioned recommendation, and consequently these interest claims still remain unpaid.

The Department does not consider that the periods of time which elapsed between the dates the drafts were paid and the dates on which claims were made for interest has changed the responsibility of the Government in these cases and, since Congress on March 3, 1927, made an appropriation for the settlement of other claims of an identical nature (44 Stat., p. 1805), I have the honor to request that, if you approve thereof, the Congress be again asked to authorize an appropriation in the amount of $44,403.15, for the settlement of these outstanding claims. The difference of $42.92, between the amount recommended herein and that recommended by the above-mentioned communication of December 10, 1931, is accounted for by a correction in the amount of interest loss on draft no. 438, shown on page 4 of the enclosed copy of Senate Document No. 18.

As a matter of convenience a tentative draft of proposed legislation is transmitted herewith. Respectfully submitted.

CORDELL HULL. Enclosure: Copy of S. Doc. No. 18, 73d Cong., 1st sess.; draft of legislation. DEPARTMENT OF STATE,

Washington, February 11, 1935. The message of President Hoover, of date December 10, 1931, together with the report of Secretary of State Stimson of the same date to President Hoover, as printed in Senate Document No. 18, Seventysecond Congress, first session, and mentioned in the above-quoted letter of date February 11, 1935, from Hon. Cordell Hull, Secretary of State, to the President, are herein set out in full for the further information of the Senate, and are as follows:

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