862.51 Bondholders/486: Telegram
The Ambassador in Germany (Wilson) to the Secretary of State
[Received June 28—4:27 p.m.]
332. Reuben Clark76 conferred with Blessing and Schacht of the Reichsbank and Brinkmann of the Economics Ministry with regard to German and American dollar bonds on June 24 and 25. Clark tells me that he suggested that the Germans resume cash payment of interest on all national and local dollar bonds including possibly corporate bonds beginning with an initial payment of 2% interest which would be built up over a series of coupons to a “reasonable percentage” suggesting that after 3 or 4 years German credit might be sufficiently enhanced to put through a conversion operation. He asserted that apart from the Dawes and Young bonds the other German long term obligations now in the hands of Americans did not total over $3,000,000 [$300,00,000?]. Brinkmann is understood to have informed Clark that he approved of the plan and that he would try to send a commission to the United States to negotiate with the Council along these lines. He stated, however, that it would be necessary to find the foreign exchange to meet this outlay and clearly indicated that such an increase in availabilities would have to come through a trade agreement in the United States although he said he thoroughly realized that the United [Page 420] States did not include debt discussions in its trade agreement negotiations.
Clark’s memorandum of his discussions are being forwarded.
- J. Reuben Clark of the American Bondholders Protective Council, formerly president of the Foreign Bondholders Protective Council.↩