862.51 R 24/9: Telegram

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


12. Reference the Embassy’s 6, January 11, 2 p.m. The loans therein mentioned are not within the jurisdiction of the Beratungsstelle.

The German Foreign Office adds privately that time was needed to reach this decision because, while the corporations are private, the stock of the prospective borrowers is partly owned by the Recklinghausen municipality. The Beratungsstelle’s authority may be extended later to such cases, but now it is limited to loans which are taken up directly or guaranteed by municipalities.

The Ministry of Finance, moreover, has endeavored to discourage the loans in question, giving the reason that the use of foreign markets for such small amounts is not good policy. However, the Ministry is not able to enforce its view.