File No. 763.72/2527

The Ambassador in Germany (Gerard) to the Secretary of State

[Telegram]

3658. Reichstag postponed discussion of the resolution on submarine warfare in full session; the subject will be discussed in the Budget Committee whose sessions commence next Monday. Cologne Gazette quotes London Times as reporting from Washington that the American Government considers the British instructions to armed merchantmen published by Germany sufficient proof that such vessels are armed for defense only.

Semiofficially reported that reciprocity agreement has been concluded by Germany with Roumania under which Germany and Austria receive 100,000 wagons of corn and 40,000 wagons of grain and malt.

Gerard