862.51 R 24/4: Telegram

The Secretary of State to the Ambassador in Germany (Schurman)


5. Inquiries have been made of the Department regarding its views as to flotation of loans of $1,750,000 for the Vestichen Kleinbahn, Limited, Zuherten, Westphalia, Germany, and of $1,500,000 for the Municipal Gas & Electric Corporation, Recklinghausen, Germany. This consultation of the Department is the first concerning German financing since the memorandum by S. Parker Gilbert which touched on German borrowing46 and since the movement to reorganize the Beratungsstelle. Although the latter, under its regulations, probably will not assume jurisdiction over these loans, the Department would not wish to confront that body, before it passes upon particular loans, with a statement thereon of the Department’s views. Should you see no objection, you may consult the appropriate authorities informally and discreetly and cable their comment, particularly indicating whether jurisdiction will be taken by the Beratungsstelle. You should briefly report any indication of the status of the survey being made concerning the need for German borrowings abroad.

You will please reply as soon as you can.

  1. See Report of the Agent General for Reparation Payments, Dec. 10, 1927 (Berlin, [n. d.]), pp. 194, 200.