811.61311 Germany/2: Telegram

The Acting Secretary of State to the Ambassador in Germany (Sackett)

[Paraphrase]

126. Department’s No. 123, July 15 [16], with reference to cotton and wheat. It is extremely difficult to secure any increase in banking credits now. Consequently, as our contribution to the situation, the suggestion to sell cotton and wheat assumes an importance larger than hitherto imagined. Our desire is that you approach some proper German official with the suggestion, as if it were your own, that, if his Government wished it, you might be able to arrange a proposal. You should present the facts as outlined in paragraphs 1 through 7 of that telegram. You are not to discuss prices. It would be much better if the Germans initiated the proposal to take advantage of our large holdings of raw materials. This procedure would enable us to scotch any chargé that we were taking advantage of the German situation to force our commodities on them.

There has been considerable criticism in this country of the fact that our tremendous sacrifices to Germany have come at a time when our farmers were enduring hardships while Germany continues to purchase breadstuffs from Russia. The idea of marketing our goods is in no sense behind our participation in this transaction. The entire world financial situation, including that of Germany, would be strengthened by any action of the German people to support American commodity markets. The German Government ought to be aware of this.

Castle