811.61311 Germany/13: Telegram
The Ambassador in Germany (Sackett) to the Acting Secretary of State
[Received August 8—10:50 a.m.]
163. Department’s 148, 7th of August, noon. I presented to the Foreign Office the views contained in the telegram under reference. I assume that, although you refer to the Embassy’s 159, August 5, which dealt only with cotton, the appointment of a German agent or agents applies both to cotton and to wheat, and I so informed the Foreign Office, which quite understood that under existing conditions, especially in view of the unfortunate publicity, it is necessary to resort to direct negotiations with the Farm Board.
It is the hope of the Foreign Office that business can be done in both wheat and cotton. The Chancellor, according to the Foreign Office, is strongly of the same mind, and it was very plain in this morning’s conversation that he can see more clearly the great advantages which would flow to German credit from the loaning to Germany on long term at 4½ percent by an American governmental institution, than can Schiele, whose vision is largely limited to difficulties of a technical nature.
The matter will be taken up by the Foreign Office with Bruening as soon as he returns from Rome on Monday, and in the meantime it will be on the lookout for suitable agents, subject to the Chancellor’s decision, to deal with the Farm Board.