462.00R296/5870: Telegram
The Ambassador in Germany (Dodd) to the Secretary of State
[Received October 11—2:10 p.m.]
196. Your 120, October 9, 6 p.m. I presented aide-mémoire to State Secretary Bülow today. He read me telegram sent Luther yesterday to the effect that Germany hoped all creditor nations would agree to reduction interest rate and that special note issue in the nature of register marks was being arranged to the end that bondholders might obtain their full interest. Pending receipt of further particulars I remain skeptical as to whether such an issue could perform this purpose, remove discrimination involved by payment of other countries in cash or avoid depressing still further the existing market for register marks. As usual on such occasions the question of trade negotiations with the United States was raised and Bülow, whose attitude throughout seemed most conciliatory, agreed that if these should come about the barriers to American commerce raised by Germany would have to be relaxed.
I also raised question of discrimination against American shipping mentioned in your 121, October 10, 6 p.m.71 Bülow was not familiar with the matter and promised prompt investigation. Consulate General, which has handled this matter, finds that decree is not discriminatory as far as the text is concerned but that its application will probably prove so. Consulate General recommends that North Atlantic Conference rule that all freights from the United States to Germany be prepaid in advance so that all German importers would be compelled to include in their original application for currency cost of ocean freight and other incidental charges (see Consulate General despatch No. 2210, October 6,72 due Washington early next week).