662.0031/61
The Ambassador in Germany (Dodd) to the Secretary of State
[Received October 16.]
Sir: Referring to my despatch No. 1307 of September 22, 1934,36 reporting the confusion then existing regarding the future of the recent clearing agreements concluded by Germany, I have the honor to report that a representative of the Embassy called at the Foreign Office on October 1, in an endeavor to learn whether there had been any clarification of the general situation.
The representative of the Foreign Office, who is generally patient and courteous, in explaining the intricacies of the clearing agreements, on this occasion delivered a diatribe, lasting more than one hour, against the United States because of its unwillingness since May of this year to enter into commercial negotiations with the German Government, even stating that the present German-American Commercial Treaty might be denounced before October 14, 1934, as effective at its expiration on October 14, 1935. For this reason the information quoted below is neither as definite nor as satisfactory as is usually obtained from this source.
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[Page 447]Though, as stated above, the representative of the Foreign Office had placed considerable emphasis on the necessity for a new commercial arrangement between the United States and Germany, he seemed to overlook and ignore the impression that Germany’s failure to pay England for current business, quite aside from any question of financial debt payments, would have upon the American business world. During the past few days, it has been denied in the German press that there has been any attempt on the part of Dr. Schacht to make the British clearing agreement include the Empire. At the present moment, the negotiations appear not only at a standstill, but, due to uncertainty as to the future of German policy, in an unsatisfactory condition.
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It proved impossible to secure any general statement as to future policy in connection with the clearing agreements. The representative of the Foreign Office is at present very close to Dr. Schacht. There has been no evidence that Dr. Schacht intends to carry out his public threats of fundamentally revising the clearing agreements. Therefore it is believed a correct surmise, that for the next few weeks the experimental stage will continue, but, as has been stated, negotiations with Great Britain may reveal the new features.
Respectfully yours,
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