862.51/3818: Telegram

The Ambassador in Germany (Dodd) to the Secretary of State

18. Department’s 12, January 24, 6 p.m. The following is pertinent portion of translated text of the statement of Dr. Sehacht:

“Germany’s willingness to negotiate with her creditors, however, is unfortunately always frustrated by the fact that there is a lack of persons on the other side legally capable of negotiating. There is no committee at the present time which could represent the creditors legally and bindingly at negotiations. It would be possible greatly to facilitate the smooth settlement of the present transfer difficulties if creditor committee could be appointed which could come to agreements with us by means of which all creditors would be bound.”

In my conversations with the Foreign Office and Sehacht I have not failed to emphasize the importance of Bondholders Protective Council and on the strength of your telegram am confirming this in writing.