462.00R296/4043a: Telegram
The Secretary of State to the Ambassador in Germany (Sackett)
89. Both here and in Europe the press reaction to the President’s statement has been favorable. However, a tendency which may originate in Germany and which has appeared in some of the press has greatly disturbed me. This is a tendency to consider that by means of a sort of coalition of Great Britain, Germany, and the United States for solving international debt matters all difficulties have now been ironed out. In my view this is unfortunate in the highest degree. There are still a great number of questions, as you are aware, in connection with the Young Plan which must still be adjusted. French cooperation is the prerequisite for this adjustment. I believe that Germany will find it advantageous to work out with the French Government these problems pertaining to the Young Plan. I feel that this is a matter in which we cannot intervene, as it rests between France and [Page 50] Germany. The broad lines of the President’s proposal are simple of course, but the Germans must not fail to remember that the big creditor with whom they must deal is France. It must not be assumed by the German Government that President Hoover took this step without full regard for the position of France or that he would pursue the matter any further without equal regard for the position of France. I desire you to make this point clear to Bruening or the Foreign Minister in the hope that they will do whatever can be done to clear away any misapprehensions which may now exist.