862.51 P 95/–

Harris, Forbes & Company to the Secretary of State

Sir: We beg to advise you that we and our associates are considering the purchase and offer to the public of $20,000,000 principal amount, 6½% Sinking Fund Gold Bonds, due in 1951, of the Free State of Prussia, of the German Reich.

These Bonds will be issued by the State upon approval by the Beratungsstelle (Council of Foreign Loans) of the Ministry of Finance of the German Reich. We are advised that the proceeds of the proposed [Page 204] issue of Bonds will be expended on the development of the electric power properties of the State and to finance the development and improvement of harbors, all of which should increase the value and earning power of the State property.

Our negotiations for the purchase of the bonds have reached a point where it is necessary to indicate definitely our position in the matter and accordingly we trust that the Department will find no objection to the flotation of this proposed loan in the American market. We shall be greatly obliged if you will so advise us immediately, telephoning your advice at our expense.

We are [etc.]

Harris, Forbes & Company