662.6431/89: Telegram (part air)
The Minister in Hungary (Stewart) to the Secretary of State
[Received June 23—4:05 a.m.]
25. Department’s telegram June 17, 4 p.m. Schacht arrived noon Wednesday and left Friday afternoon. He was very warmly received [Page 489] and upon his departure Imredy, President of National Bank, in statement to press paid high tribute to Schacht and expressed hope that their brief discussions of financial and economic questions would have a salutary effect on the further development of trade between the two countries.
High official authority for National Bank informs Legation that no concrete changes resulted from conversations which consisted merely of an exchange of ideas; that although Hungary’s balance in Germany is less than that of other countries visited nevertheless Hungary’s policy is to reduce the balance which is now about 21,000,000 reichsmarks and to definitely restrict their import and export trade with Germany.
On June 19th Schacht made a long statement at press reception. In brief he said that international debts can only be settled by an increase in exports; that marketing of creditor countries afford Germany and other debtor nations less and less opportunity to sell and that therefore Germany endeavors to establish economic relations where economic interests complement her own. He states that on his trip he has not presented any sinister political plans and that “if a part of the unwarrantable press objects to the fact that possibly our economic relations with this part of Europe may develop into more friendly political relations I must ask whether such development is desirable or not”. He pointed out the Bolshevik danger which can be diverted only by an endeavor to raise the standard of living which is possible only through the development of international trade.
After his speech a journalist asked whether agricultural self-sufficiency was the aim of German policy or whether the policy tends toward further industrial development. He replied that while Germany has a duty to and must strengthen the farmer class whose energies are so vital to the interests of the nation at the same time further industrial development is needed to care for the surplus population. He added, “One cannot renounce industrial development merely because the price of iron is lower in Pittsburgh than in one’s own country.”