762.71/44: Telegram
The Minister in Rumania (Gunther) to the Secretary of State
[Received March 21—6:30 a.m.]
50. You will by now have received my telegram No. 46, March 17, 8 p.m.,31 sent via London radio for usual reasons of economy. German trade negotiations here are secret and it has been difficult to obtain reliable detailed information thereon but we have no reason to believe, from subsequent inquiries, that the telegram referred to does not give an accurate picture. My despatch No. 798,32 mailed March 16th, which should reach you early next week, gives our analytical comment and comparison with German demands at the time of the Treaty of Bucharest.
Upon receipt by wireless of your telegram 29, March 18, 3 p.m., I sought out the Minister for Foreign Affairs at his house. It appears that Tilea, the Anglophile Rumanian Minister at London, aided and abetted by Dimancesco who handles press relations for the London Legation, was guilty of excessive zeal. When taken to task Foreign [Page 75] Minister Gafencu says Tilea replied that he was merely trying to be helpful. Gafencu re-asseverated that there had been nothing in the nature of a German ultimatum and that though Germany asked for more than could be given this was to be expected and that bargaining was now proceeding in a normal [apparent omission]. He said that the false report had been seized upon by the Jewish controlled sections of the western press. He maintains that there is room for all in Rumania and that concessions had better be made now to Germany rather than give reasons for wresting them by force later. The Germans offer to loan technicians. It is maintained, and this seems reasonable, that Rumanian agricultural production could be doubled or tripled with use of modern methods. Germany offers a steady market for Rumania’s present and any general agricultural surpluses. It will be difficult for Rumania to accept German economic collaboration and guidance and still avoid later political dictation after German investments have increased especially in view of the lack of any restraint on the policy of expansion. In making peace with Rumania in 1918 German ambitions were held in check by the counter claims and caution of Austria.
The Minister said that he would cable Irimescu to explain the situation to you and mentioned the flood of inquiries and queries which had reached him after the London radio rumor. I have remarked that this showed the interest of the West in Rumania. He replied that both the King and himself were gratified to note that the Western powers were not indifferent. He referred again to the concentration of troops, about 200,000 men, on the northern frontier and assured me that the Rumanian forces would avoid any provocation and that they were there solely to show that Rumania, at least, would go down fighting if needs must. The Minister referring [referred?] to his efforts for Hungarian appeasement.
My conjecture is that this particular storm will blow over. The danger for Rumania will come later, probably when least expected, unless meanwhile Germany becomes convinced that a repetition of recent events would bring down upon her the whole might and force of arms of the democratic powers. Barring such a development I feel that Hitler’s plan will continue to be pursued as opportunities present themselves. Apart from higher considerations may I again mention here that as reported in our survey of American interests in Rumania dated May 26, 1938,33 the total American stake in Rumania is well over $200 million.