811.61311 Germany/5: Telegram
The Acting Secretary of State to the Ambassador in Germany ( Sackett )
[Paraphrase]
Washington
, July 22, 1931—7
p.m.
130. Embassy’s 139, 21st of July, 4 p.m.
- 1.
- Fifty million bushels of hard wheat could be delivered by us. One quality called Fancy Dark winter has a protein value of 13 percent; and the other, No. 2 hard winter, has a slightly lower protein value. No. 2 hard winter seems to be the quality which Germany usually imports. It would require a premium over normal good milling wheat.
- 2.
- We have considerably changed our point of view on prices. If it should be possible to take an early transaction on both wheat and cotton, my opinion is that the Farm Board would be ready to sell 50,000,000 bushels of wheat and 1,100,000 bales of cotton. Payment in the form of acceptances from some sound German financial institution bearing interest at 4½ percent would be distributed over a period of 2 or 3 years. There would be monthly deliveries; the price calculated over the average of a whole year; but a minimum price to be fixed and also a maximum.
- 3.
- It would probably be necessary to have the maximum on wheat at about $.80 and the minimum at approximately $.70.
- 4.
- Cotton could be treated in the same manner, and the maximum set, shall we say, at $.13½ and the minimum at $.11. If required, delivery would be given earlier than monthly amounts but if the deliveries were less than the monthly amounts, Germany would bear the storage charges.
- 5.
- These terms are not to be stated precisely to the German Government. You could point out, however, that upon inquiry you believe something could be formulated upon these lines. If such a transaction could be announced in the present situation, we believe that German credit would be undoubtedly strengthened as showing that the Farm Board, a Government agency, has no fears as to the stability of Germany.
Castle