462.00R296/5380
Memorandum by the Under Secretary of State (Castle) of a Conversation With the German Ambassador (Von Prittwitz)
The German Ambassador was looking rather sad because, as he said, he feels that the reservation made by Congress46 on the moratorium will have a very bad psychological effect in Europe. I pointed out that the fact the moratorium had been passed might have, on the other hand, a good psychological effect and to this he agreed. He said that he felt the future depended on the result of the Government Conference to follow the meeting of the Committee of Experts.47 He was afraid that the reservation made by Congress would make France very much stronger in opposing generous treatment of Germany. I pointed out to him that just preceding the elections was a very poor time to expect any nation to be particularly generous and to this he agreed. He feels, however, that, unless this Government Conference is successful, there will be little hope of any success in the Disarmament Conference and little hope of an upward trend in the economic situation.
The Ambassador asked me who our observer would be at this conference and I said I not only had no idea, but had no reason to think we would have any observer.