800.8810/1118: Telegram

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

58. The British Ambassador in Washington in pursuance of instructions from his Government has presented a note, dated May 25,9 which in substance states: A special meeting of the North Atlantic Conference of shipping lines was held on May 24 at Brussels to consider the situation arising from the regulation made by the Reichsbank late in February last whereby registered Reichsmarks are allowed to be used to pay for accommodations on German ships. Since it is understood that registered Reichsmarks can be purchased at a discount of about 20%, this results in German lines in fact selling tickets below agreed uniform rates. This would not appear to be due to any action on the part of the German lines who cannot of course know whether Marks paid to them are registered Marks or otherwise but is the result of the above mentioned regulation which the Reichsbank made and is itself free to repeal. The Atlantic Conference telegraphed to the Reichsbank requesting that the above mentioned regulation be at once repealed.

The British Ambassador in Berlin has been instructed to draw the attention of the German Government to the matter and to express the hope that the Reichsbank will take immediate steps for the repeal of the regulation in question.

The British Government hopes that the United States Government will feel able to take similar action at Berlin.

In the circumstances you are authorized, unless you perceive objection thereto, to take action along the same lines. The Shipping Board concurs in proposed representations. Please telegraph results.

  1. Not printed.