863.51 Relief Credits/518: Telegram
The Chargé in Germany (Gilbert) to the Secretary of State
[Received January 25—3 p.m.]
69. Embassy’s 64, January 24, 1 p.m., final paragraph.7 The German news agency released the following communiqué this afternoon.
“Service of the Austrian foreign debts.—America accepts the proposal made by the Germans to enter into negotiations.
“As reported at the time the German Government informed the Embassy of the United States in the course of the discussions going on for some time regarding service of Austrian foreign debts that though Germany does not recognize any obligation to assume these debts she would nevertheless be prepared to enter into negotiations regarding indemnification of American creditors of Austrian loans within certain modalities.
“To this statement the Embassy of the United States in Berlin replied by a note of January 208 in which the fundamental legal interpretation of the German Government is not recognized but in which the German proposal of negotiations is accepted and the opinion is expressed that the American creditors would agree to having the rates of the loan service adapted to altered conditions. It is proposed to the German Government to begin negotiations on the subject direct with the American creditors.”