462.00R294/865: Telegram

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

165. My 122, July [June] 27, noon. Schroeder Banking Corporation with cooperation of National City Bank submitted on August 1st to Reichsbank a new concrete plan for solving transfer. Copy of plan [Page 482] shown Embassy involves an export transaction of some magnitude which it is understood will be described directly to the Department by Schroeder representative sent from New York next Monday.

Schroeder intimates Reichsbank well disposed toward plan but since the export phase of transaction involved would bring little foreign exchange into Germany, officials in Ministry of Economics are hesitating. Schroeder suggests that if Department could express American Government’s approval of proposed solution and authorize Embassy to intimate this to Foreign Office that competent German authorities would probably concur in the plan and it could then be submitted for initiating direct negotiations in accordance with your 49, April 14, 2 p.m. Embassy understands plan includes extension of $2,000,000 credit to I. G. Farben.