800.51W89 U.S.S.R./16: Telegram
The Acting Secretary of State to the Ambassador in Germany (Dodd)
Please give Bullitt following message from Moore and keep no copy in Embassy’s files.
Study and investigation since my telegram of December 8 have convinced us that the transfer to the Russians of American-owned German obligations can only be effected through the intermediary of a financial institution. However, we fear that funds under the National Industrial Recovery Act,47 the Reconstruction Finance Act,48 et cetera, even though available for the purpose of founding an Edge plan bank, could not be properly employed by it without Congressional sanction for the acquisition on Soviet account of German obligations held in the United States. If further examination confirms this, would you be in favor of recommending to the President that authority be requested of Congress to set up an Edge plan or other bank with Government funds and a charter sufficiently broad to effect the German-Soviet transaction and the financing of trade with the Soviet Union.
We are particularly anxious to be informed by telegraph with regard to the nature, amounts and dates of Soviet maturities in Germany also conditions of payment. We understand that the Soviet trade delegations in both Berlin and Paris have already considered the possibility of using American credits in Germany to meet Soviet maturities. It would be helpful to learn what credits they consider they could successfully employ to this end and names of holders in Germany of Soviet obligations.