462.00R296A/14: Telegram
The Secretary of State to the Ambassador in Germany ( Sackett )
196. We understand, in connection with the final sentence of the Embassy’s 214 of November 12, that the several private banking parties concerned over German short-term credits desire that discussions begin immediately for the final settlement of the credits which the Standstill Agreement involves. They maintain the opinion that this must be done before December 1. The immediate appointment of a committee of private bankers with whom they can negotiate is what they are waiting for.
The prompt settlement of this matter would have distinct advantages: Uncertainty would come to an end for the banks; German credit in this country would be maintained; the settlement of this question would be handled separately, as we believe it should be, thereby safeguarding against the possibility of its involvement in the reparations controversy. The bankers are prepared to discuss this subject, and the German Government should be so informed. You should also express the strong hope that the immediate discussion and settlement of this matter will be facilitated by the German Government. [Page 343] The European reparations problem should not be linked with the matter at hand.
The reason why the revised computations of the amount of the short-term credits should create any new obstacle is not clear to us. We trust that this will not be permitted to stand in the way of the action proposed.