462.00R296/5820: Telegram
The Ambassador in Germany (Dodd) to the Secretary of State
[Received 9:10 p.m.]
132. Your 84, July 5th. I presented points raised therein to Foreign Minister this afternoon. He told me that, considering it essential to meet Dawes-Young interest payments on British holdings, he had, himself, acting for the Chancellor, overruled Schacht who did not intend to do so. He would likewise do all in his power to have interest paid on Dawes-Young holdings in the United States. But by reason of declining balance of trade which rendered Reichsbank situation ever worse this would be extremely difficult. He intimated regretfully that timely trade negotiations with the United States such as could have prevented present condition had not been possible. Asked whether trade balance with all countries would not permit equal treatment for American creditors with British, he merely expressed the hope that this might be possible. He expressed concern that the Department should receive full official text of agreement from London before taking action.