462.00R296/4217: Telegram
The Ambassador in Germany (Sackett) to the Acting Secretary of State
[Received June 30—6:23 p.m.]
106. I have just seen Chancellor Bruening with reference to your question this afternoon over the telephone3 as to what the German Government would do if the conversations with the French were broken off tomorrow. He said he would tell me only in the strictest confidence, but quite frankly, that if negotiations should definitely break down tomorrow Germany would give notice the following day of her intention of declaring a moratorium as of July 14. He stated further that Germany would try to meet the unconditional payment due July 15 and subsequent unconditional payments, but the question was how to find the money and the requisite foreign exchange at the time. I am not including this in my telephone conversation with you4 as I do not think it should be sent over the telephone.