662.1115/62: Telegram

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

26. Your 45, February 28. Before indicating my reaction to the proposed visit I wish to know (1) whether the mission is to come officially or unofficially; (2) whether it would expect to enter into negotiations with this Government for the modification of present customs and treaty arrangements, or whether it would limit itself to discussions with American private interests.

In the event that it is an official mission expecting to discuss tariff arrangements with this Government, it should be pointed out that the President announced only yesterday that he was about to present to Congress a bill asking authorization to enter into executive commercial agreements and in connection therewith and within carefully guarded limits to make modifications of the tariff. Until it is known what action Congress will take on this bill and until this Government has much more fully defined the outlines of its policy of reciprocal agreements made under such a bill and built up the necessary organization, it would be premature to undertake any new official discussions with representatives of other governments with regard to such agreements. In fact, the exploratory conversations begun with various governments of Latin America at the present time are all in suspense for the above reasons.

Lastly, of course the German Government understands that this Government has no authority whatsoever to enter into any arrangement affecting the rights of the private holders of German bonds.

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Could you throw any light on this proposal? Do you take it as preparing the ground for an attempt to put German-American trade relations on a strictly bilateral basis?

Until the Department receives further light it is impossible to indicate whether visit would serve any useful purpose. You will no doubt wish to indicate to the Foreign Office that the mission should delay its departure until you have had an opportunity to report.

The preceding is unconnected with the suggestion made by the Department to the Embassy here that it would welcome a discussion at the earliest possible moment wholly and solely for the specific purpose of defining mutually the rights of the two governments under the existing treaty as applied to quota and monopoly purchase arrangements. But this discussion would hardly appear to require the visit of a mission.11

Hull
  1. No further information seems to have been supplied on the activities of the so-called trade mission.