862.51/2089: Telegram
The Secretary of State to the Ambassador in Germany (Schurman)
193. (1) Your 188, October 29, 3 P.M. You may inform Gilbert as follows:
“Department is still using the form of letter contained in Department’s 184. October 17, 7 p.m. Department has noted views of Transfer Committee as informally indicated in reports received last winter from Logan and more recently from Hill,64 and in your message forwarded October 16 through the Embassy.65 Department also has noted views expressed in Sterrett’s letter October 23,66 ‘that it was not considered either necessary or desirable for the Transfer Committee to attempt to forecast action which might be taken by it at a future time under conditions and circumstances now unknown.’ In bringing this matter to the attention of American bankers, the Department of course does not in any way pass upon the interpretation or application of the provisions of the Dawes plan or upon their effect, if any, upon such loans and is so indicating in its letters to the bankers.”
(2) For your guidance. Department does not wish to appear to enter into controversy with Gilbert on this matter.
(3) Your 189, October 30, 11 A.M.67 In the foregoing circumstances I feel that the situation remains substantially the same and do not feel justified in changing the Department’s letter at this time.
(4) For your information. Department has learned from Schacht that there is a likelihood that stricter control will be exercised by the German Government with respect to loans. If this is done it will remove one element of uncertainty. Telegraph any significant developments.