462.00R296/4671: Telegram
The Chargé in Great Britain (Atherton) to the Acting Secretary of State
[Received July 22—10:52 p.m.]
261. [Paraphrase.] This afternoon the Committee of Finance Ministers met, and after a long discussion at which many problems were raised, passed by unanimous vote a resolution which will be recommended for the acceptance by the plenary meeting of the Conference tomorrow morning: [End paraphrase.]
[Here follows, with some minor verbal differences, the text of the Declaration as formally adopted by the London Conference, printed infra.]
You will note that this includes the measure recommended by President Hoover for the stabilization of existing credits as well as his recommendation for the appointment of a committee of bankers to make a study along the lines suggested. The proposal brought forward yesterday relating to the further rediscount of internal German commercial bills was eliminated and in its place was substituted the paragraph relating to the possible use of the joint guarantee by German industry.
[Paraphrase.] Tomorrow there will probably be added a paragraph which will contain an assurance on the part of the German Government that it will do everything it can to stabilize conditions.11 It is practically certain that the resolution will be accepted by the plenary meeting of the Conference.
Undoubtedly the principal difficulty which had to be overcome today was the reluctance on the part of the British to accept the proposal for stabilizing present credits in consideration of the strain which their own banking system is undergoing just now.
Outstanding features of the meeting were the good feeling which prevailed and the sincerity with which all of those present seemed to be making a genuine effort to find a solution to the problems confronting them. [End paraphrase.]
- This statement, which was read by Chancellor Bruening for the record of the Conference but was not incorporated into the final Declaration, reads as follows: “The German Government declare that they will do their utmost to maintain the monetary and economic stability of Germany, but, in so doing, they are counting on assistance from the world.” The London Conference, July 1931: Proceedings and Memoranda, Minutes of the Fourth Plenary Meeting held July 23, 1931, at 10 a.m., p. 11 (462.00R296/5209).↩