762.00/242: Telegram
The Chargé in Germany ( Gilbert ) to the Secretary of State
[Received February 7—7:25 a.m.]
100. We have been able to employ the confidential information conveyed in my No. 94, February 4, 10 a.m., for background in conversations with German officials in an endeavor to elicit further information on that subject. Although the informed officials are exceedingly reticent, what they say nevertheless tends to confirm the existence of the general German project which that telegram discussed.
In this connection, I learn that serious study is being given to the project of a customs union with Czechoslovakia and also the study of one with Hungary. The Germans have been expecting the Czechs to broach such a proposition. On the other hand the tentative conclusion of the economic authorities of the Government is that the erection of a thoroughgoing customs union would be a most difficult and long drawn out process which could not be effected without an arrangement in the nature of a currency union which raises still further problems.
Repeat last paragraph to Treasury.