811.61311 Germany/21
Memorandum by the Economic Adviser (Feis)
Mr. Meyer, the First Secretary of the German Embassy, came in to see me about the last two outstanding points of difference between the German negotiators and the Farm Board in regard to the purchase of wheat. One concerned the financial guarantee which the German Government has to grant. The suggested amendment seemed to me to be unobjectionable and by telephone to the Farm Board, I ascertained that they were agreeable. The second concerned the price to be paid for the wheat. On this, though I have avoided giving advice to the Farm Board, it seemed to me that the position taken by the Farm Board was fair in accordance with the understanding at the beginning of the discussions. The Secretary indicated that though he was not authorized to give any answer to that question—as I was not authorized to receive any—that the [Page 309] German negotiators would give in if the American position is maintained.
Therefore, at the Secretary’s request, I arranged a meeting at 12:15 at the Farm Board for the signature of the contract25 and at 12:45 for the Ambassador’s signature of the German Government’s financial guarantee. Both the Secretary and the Farm Board asked me to be present at the signature, but in accordance with previous discussion with the Under-Secretary, I informed them that it did not seem to be necessary and that I would not come.
- For the terms of the contract between The Grain Stabilization Corporation and the Deutsche Getreide Handelsgezellschaft, which involved the sale of 7,500,000 bushels of wheat on 3-year credits, see the statement by the U. S. Federal Farm Board in the New York Times, September 12, 1931, p. 2.↩