862.51/2107a: Telegram
The Secretary of State to the Ambassador in Germany (Schurman)
[Paraphrase]
Washington, November 11, 1925—6
p.m.
196. Our No. 193, October 31, 5 p.m., fourth paragraph, and No. 195, November 6, 1 p.m. Your despatches Nos. 409 and 415 of October 23.68
- 1.
- Reports from Berlin in today’s papers refer to statement by Gilbert to press correspondents with respect to attitude of Transfer Committee regarding German loans. Department wishes you to telegraph as soon as possible substance of Gilbert’s statement.
- 2.
- Communiqué quoted on second page of your despatch No. 409, October 23, indicates that it will be the policy of the Advisory Board to give its consent only for a few loans of the most productive character. The communiqué quoted states that loans to Berlin, Cologne, and Munich were the only ones approved. In addition to these loans, however, there have been floated in this country loans to Dusseldorf and to the joint cities of Wurtemberg. Make a discreet investigation and report by telegraph whether Advisory Board approved these loans. The Department has also been consulted with respect to loans to the municipal bank of Hessen and also to Altona, Frankfort on the Main, Nuremberg and Stuttgart. Has approval been given to these or to any other loans?
- 3.
- The Department has also been consulted with respect to a further loan to Bremen and one to the State of Oldenburg, and also to certain enterprises which German States have guaranteed. Does the Advisory Board have jurisdiction with respect to foreign loans by the states as well as by municipalities?
- 4.
- Does the Advisory Board have jurisdiction with respect to German industrial loans?
- 5.
- Herring’s report in your despatch No. 415,69 indicating that there is in prospect much more municipal financing, has been noted by the Department. As Herring’s report is dated October 19, it is prior to the public statement quoted in your despatch No. 409, October 23. Department would appreciate receiving any information which you can discreetly obtain with respect to the policy which the Advisory Board will follow, as well as your views as to whether the Advisory Board or any other German agency is likely to be able to control German borrowing from abroad.
Department wishes telegraphic reply as soon as possible.
Kellogg