462.00R296/5817a: Telegram
The Secretary of State to the Ambassador in Germany (Dodd)
84. Press despatches from London report that Germany has reached agreement with Great Britain whereby Germany will continue full interest service on Dawes and Young loans, apparently abandoning its request for an arrangement for “additional exports”. This will provoke strong reactions here unless similar payments are extended to American holders. The circumstances under which these loans were floated so largely in the United States for the benefit of the European [Page 377] situation and responsive to requests of the principal European governments, including Germany, will make the grant by Germany of any discrimination against American holders highly objectionable here.
Please inquire in the appropriate quarters as to German attitude in this situation, and as to the intentions with respect to American bondholders.