811.61311 Germany/7½: Telegram

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

[Paraphrase]

155. Embassy’s 147, 24th of July, 4 p.m.; the Department’s 130, July 22, 7 p.m. In the presence of the Chancellor, I have continued to hold conversations regarding wheat with the Acting Minister of Economics and the Minister of Agriculture. According to the latter, his Government could take in the next 12 months not more than 500,000 metric tons. The previous estimates of 50,000,000 bushels had been based upon imports of former years. Last year the production of domestic wheat showed a considerable increase over former years. Consequently, the requirements of hard wheat are much reduced.

The Minister of Agriculture claims that the requirements of Germany as to these 500,000 tons fall into the following three categories: (1) 100,000 tons of No. 1 and 2 amber durum; (2) 200,000 tons of northern Duluth spring and hard Duluth spring corresponding to Manitoba 1 and 2; (3) 200,000 tons of the usual commercial deliveries of first grades of hard winter.

I need additional data on the question of price. On the quotation of what grain exchange and on what grades would your prices be based to arrive at the average annual price to be paid?

Schiele, the Minister of Agriculture, is of the opinion that only if the newest crop of wheat is delivered could this sale be carried through. He also asks if deliveries can be made of equal amounts quarterly instead of monthly.

Yesterday, the Minister continued, the Federal Farm Board offered good hard winter grades at $.56 per bushel c. i. f. European ports and [Page 301] American shippers offered durum at $.60% to $.61½ c. i. f. European ports.

Sackett