462.00R296/5243
Memorandum by the Secretary of State of a Conversation With the German Ambassador (Von Prittwitz)
The German Ambassador came in to ask me about the Laval conversations31 and particularly in respect to what should be done as [Page 333] to reparations. The Ambassador said he had had a talk with M. Laval last night during which Laval said that both sides had agreed that Germany needed help under this depression; that that help should be given under the Young Plan;32 and that he, Laval, was going back to Paris and after he had consulted with his Cabinet would call in the German Ambassador and suggest to him that Germany ask for the appointment of a commission of experts by the B. I. S. to report on Germany’s condition under the present circumstances. The Ambassador wanted to know whether that was correct and if that was our view. I told him it was substantially correct and it was our view. The Ambassador asked when this should be done. I said, the sooner the better; that there was no intention of having it delayed that I knew of; and that every consideration dictated its being done promptly. The Ambassador said yes, he thought that was true, because the meeting of this commission would have a helpful effect not only on the depression but on the position of the bankers as to the short term credits also; that the bankers’ agreement33 would expire in February and therefore it was important that this should be under way at once. I said I agreed. The Ambassador said he wanted to report to his government and that was his excuse for coming in and troubling me.