611.6231/430
Memorandum by the Under Secretary of State (Phillips)
The German Ambassador called, by appointment, at ten o’clock and, in the absence of the Secretary, I received him. He left with me a brief memorandum which, in accordance with Article 31, gave notice of the desire of his Government to terminate the commercial treaty with the United States in one year’s time; the Ambassador stressed, in particular, the fact that the decision of his Government had been taken with a view to getting rid of Article 7, providing for most-favored-nation treatment. The other parts of the treaty, according to the Ambassador, were not objected to; he hoped, however, very sincerely that, before the year had expired a new commercial treaty between the United States and Germany could be effected.
The Ambassador made no reference to the announced decision of his Government to discriminate against American holders of Dawes securities.