611.623/141: Telegram

The Chargé in Germany (Mayer) to the Secretary of State

179. My 176, June 12, noon. From conversation and general comment here we have the impression that the Treasury decision has aroused considerable feeling in Government circles. The Germans consider its abruptness is to be deplored and that it is unfortunate that especially at a time when they are making every effort in a number of ways, by visits and conversations in Washington, et cetera, to try to bring about a general improvement in German-American economic financial relations.

We also have the impression that, while they clearly would not wish to do so, the Germans may be obliged to consider the principles of application of their own protective legislation, unless between now and July 11 some satisfactory arrangement can be arrived at and methods discovered which, at least, would isolate the Treasury decision until the cause for the selection of the present for its issuance could be ascertained and remedial measures found, thus permitting German-American trade to continue for the present.

While we have no detailed background, we feel that the present obstacle affords a certain bargaining advantage which we might usefully employ in an effort towards an improvement of German-American relations.