The Acting Secretary of State to the Ambassador in Germany (Sackett)
52. Department’s 50, May 11, and your 95, May 12, 3 p.m. The Department is not certain from your No. 95 whether “favorable solution” which you mention means solution of the interest rate question in the refunding agreement to be signed between Germany and ourselves, or whether you mean that the German authorities have indicated their willingness to also inform France, Italy and the other reparation creditors that Germany will agree to 4 per cent in place of 3 per cent as now written into the London Agreements. The latter has become important because as stated in our No. 50 the French and Italian Governments are both deferring signature of the refunding agreement with the United States until necessary assurances have been received from Germany on that point.[Page 621]
In the event that the German statement to you did not deal with the question just outlined, please immediately discuss the matter with them.