862.51 Bondholders/487: Telegram
The Ambassador in Germany (Wilson) to the Secretary of State
[Received June 30—3:10 p.m.]
335. Department’s 105, June 29, 1 p.m. Clark has left Berlin but from Mann81 who accompanied him in his interview with Brinkmann and according to the following excerpt from his memorandum of the discussion it was made clear to Brinkmann that the Department is not prepared to link in any way debt discussions with trade matters.
The following is from Clark’s memorandum.
“During the course of the conversation the question of trade agreements came up and Mr. Clark reiterated what he had said to Drs. Blessing and Schacht in turn (which was a reiteration of what Mr. Clark had said to them last year) that there was no connection whatsoever between the trade agreements and the long term indebtedness, that the State Department negotiated its trade agreements without any reference to the long term indebtedness; and that any thought that the Germans might have that by withholding service on the long term indebtedness they were bringing pressure to bear in the matter of a trade agreement was wholly unfounded.”
According to Mann, Brinkmann replied to this statement by saying that he “had gained the same impression when in Washington 2 years ago and that this attitude had very much surprised him.”
I have subsequently discussed these matters with Brinkmann and believe that he fully understands the Department’s policy of disassociate action of debt and trade matters as well as our attitude towards Austrian loans82 but in compliance with the Department’s instruction under acknowledgment will take the first suitable opportunity to reiterate to him our position.