862.51/4060: Telegram

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

112. Negotiations in progress in Berlin with Dutch and Swiss for special transfer agreements which if obtained will be notified to other creditors. It was indicated at the Foreign Office that Governments of countries mentioned showed willingness to reduce rate of interest and statement attributed to President Roosevelt in New York Times of February 8th last was cited as evidence that American Government viewed reduction of interest on foreign indebtedness as reasonable. Communiqué published intimates that imposition English clearing would be met by countermeasure against whole British Empire but presumed at the Foreign Office that there would be Dawes–Young settlement negotiated with funding bonds or increased export of goods.

Dodd