867.77/355: Telegram
The Commissioner at Berlin (Dresel) to the Acting Secretary of State
[Received December 31—5:56 p.m.]
1474. Yesterday a conference was arranged with Deutsche Bank, and Roosevelt is now telegraphing to Sinclair urging immediate return to Europe in order to carry on negotiations personally. A contingent [Page 774] arrangement is not acceptable to the bank, which proposes instead that a syndicate be formed to control Orient Bank, the Americans paying in one and one-half million dollars and receiving a quarter interest in syndicate with option to buy full control. Meanwhile the Americans are to exercise control of syndicate. The bank is prepared to make liberal concessions in order to satisfy Americans, and it is my belief that definite arrangements can be made if Sinclair and Von Stauss meet.19 Stauss had conference with Sir Albert Stern in Brussels. Stern regards British position in Mesopotamian project as very strong. The conference was very short and Stern asked to see Stauss again early next month. Stauss plans, therefore, to leave here about the 3d of January, and does not expect to return until conclusion of Brussels conference which convenes on the 10th. Information which I have from other sources, and which I shall try to verify, regarding position of Great Britain does not accord with Stern’s attitude. Request that foregoing be communicated to Chandler & Co.
- The bank’s proposal was not accepted by Mr. Sinclair, who withdrew his own offer early in 1921.↩