862.51/2109: Telegram
The Ambassador in Germany (Schurman) to the Secretary of State
[Received November 14—12:30 p.m.]
196. Department’s telegram number 196, November 11, 6 p.m. Question 2: Acting Chief, Advisory Board, stated yesterday that since public statement quoted in my despatch 408 [409]70 following loans have been approved by Board: Bremen, Düsseldorf, group of Wurtemberg [Page 183] cities including Stuttgart, Frankfort am Main, Nuremberg, State of Oldenburg; and definite approval imminent for a few others now pending. Question 3: Board has jurisdiction as to foreign financing by states as well as communes. Question 4: The Board does not have jurisdiction over industrial loans.
[Paraphrase]
For reasons explained in my despatch 295, September 15, very effective control cannot be exerted by Advisory Board over loans to municipalities. It is stated by the Acting Chief of the Advisory Board that it would be necessary to amend the constitution in order to make control by the board effective, as the various states can at any time withdraw their consent to be represented on the board. It is not my impression as matters now stand that the Advisory Board or any other German agency will be in a position in the long run to control effectively the obtaining of loans from abroad.
Please inform Department of Commerce.