711.622/155
Memorandum by the Chief of the Division of Western European Affairs (Moffat)
Dr. Leitner called on his return from a month’s vacation. We talked of events that have occurred during his absence and the conversation naturally drifted to the German denunciation of Article 7. He remarked that we could scarcely have been surprised at Germany wishing to free herself from the most favored nation clause as the German Ambassador and he had been speaking in that sense for some months, and the failure of the United States to undertake to discuss a new trade arrangement which had been offered over and over again of late made the German action more than ever imperative. I told him that I was not surprised but that I was disappointed as the Secretary’s whole philosophy in trade negotiations was to tie them up with the most favored nation clause and thus to bring about a cumulative reduction of trade barriers. Meanwhile, I pointed out that there was increasing concern over continued German discriminations against our commerce and our bondholders. Dr. Leitner at first asked what discrimination, but later said that they had as many griefs against us as we had against them; that our attitude toward dumping, particularly of German steel, had in effect acted as an embargo for two years; that there were other trade complaints, for instance, on [Page 455] heavy wires, our attitude toward the admission of German coal,42 et cetera, on which they had been protesting to us for a long time. I told him that I didn’t find any of these particularly apposite nor did they involve discrimination. We were sympathetic to countries that were in difficulties and that just could not do things provided all nations were treated alike, but that a system of favoritism was bitterly resented here. He referred briefly to the agreements entered into by Germany with other European countries and indicated in every case that this was because the other countries were anxious to help Germany and had made concessions to her. I took issue with him on this and he did not pursue the point further.
Dr. Leitner finally said that inasmuch as he had just returned from leave and had not read through the recent dossiers he hoped that any remarks he might have made would be considered as an expression of his personal views and not necessarily representing those of his Ambassador or of his Government.
- For correspondence with respect to the importation of German coal, see Foreign Relations, 1933, vol. ii, pp. 502 ff.↩