462.00 R 29/2109½
Memorandum by the Secretary of State of a Conversation with the German Ambassador (Wiedfeldt), October 9, 1922
2. Conditions in Germany. The Ambassador had a memorandum before him which he did not leave with the Secretary; said that he [Page 164] wished to talk with the Secretary freely about conditions in Germany; said that they were becoming, as the Secretary must know, increasingly difficult; that the attitude of the United States is well understood; that it is entirely proper that the United States should expect Europe to do something to help itself before extending further relief; but that the situation was so critical and there was so much distrust that there was no Power but the United States that could command confidence and bring about a solution. The Ambassador said that the United States could insist upon several points. The first was that there should be a real peace in Europe; that armies should be reduced, and that there should be a cessation of threats; that Europe should understand; help from the United States would come in case they abandoned their mutual distrust of each other and made a serious attempt to settle their economic questions. The second point was the necessity of dealing with German reparations. Then there was the question of the various debts owing by the Allies with which Germany was not concerned. It would be proper for the United States to insist that budgets should be reduced and a sound monetary basis be established in the various countries. The Ambassador enlarged upon these various propositions.
The Secretary said that he was glad to hear the Ambassador’s statement and that he was fully appreciative of the difficulties to which the Ambassador had referred. The Secretary emphasized the importance of seeking a solution by taking the first practicable step. He said, for example, that it was idle to begin with political questions which would simply lead to an insistence upon the position which each nation deemed essential to its own policy. It was idle to expect that the responsible and political leaders of the various countries would find it possible, preliminary to a discussion of other questions, for example, of general reparations, to alter their national policies.
The Secretary said he thought the first question to be considered was the question of German reparations, and that that should be settled on a sound economic basis; that if this question were settled it would open the way to a better economic condition and to the adjustment of some of the other matters to which the Ambassador had referred. The Secretary hoped that a way would be found in the near future to have an impartial examination and settlement of this question. The Secretary said that he could not discuss these matters in detail, but that the questions which the Ambassador had raised were the subject of close study by this Department.