862.51/3629: Telegram

The Chargé in Germany (Gordon) to the Acting Secretary of State

105. My 102, June 15, 1 p.m. Referring to my conversation with Bülow, the Foreign Office telephoned me today that having discussed the [Page 445] matter of the interpretation of Schacht’s remarks with Reichsbank officials the latter pointed out that suggestions as to possible discrimination on the ground of different balances of payment had come from other creditors; that Schacht’s remarks registered the fact that such suggestions had been made but that his closing statement in this connection “Of course I have not in any way made up my mind whether it should be done and certainly I do not quite know how it can be done”, clearly indicated that Schacht himself was not considering discrimination.

The Foreign Office considers that this explanation is correct and reenforces Bülow’s contention that Schacht continues to hold the view, which coincides with the policy of the German Government, that discrimination between creditors is an improper principle.

Repeated to London.