611.6231/332

Memorandum by the Assistant Secretary of State (Sayre)

Doctor Luther14 called to see me this morning in order to suggest the urgency of opening up commercial trade negotiations between Germany and the United States. He explained that the growing strains and economic tensions in Germany were such that Germany felt that commercial treaty negotiations permitting Germany to export [Page 421] larger quantities of goods to the United States were urgently needed to break the vicious circle existing in Germany. He called to ask me to name the commodities whose export from Germany might be made possible by lowered American tariffs under our bargaining treaty program. He mentioned that expedition was also advisable in view of the fact that the present Treaty between Germany and the United States expires next October and he said there are certain provisions in this Treaty which require adjustment.

I explained to Doctor Luther that until the pending tariff bargaining bill has been passed it is impossible for us to enter into conversations with foreign countries concerning specific commodities. I explained to him that unless I could assure the Committees in Congress that as yet I had entered into no actual conversations I would be pressed by members of Congress to tell what countries conversations had been held with and what commodities were under discussion, and that if once specific commodities were mentioned it might endanger the passage of the bill. For these reasons, I explained to him that it is impossible for us to make mention of any specific commodities until after the bill has passed. Doctor Luther expressed himself as satisfied with this explanation and said that he wanted to do nothing which might endanger the passage of the bill. He added, however, that as soon as the bill is passed Germany would be eager to begin conversations. I made no promises committing the United States in any way nor did I indicate when we might be prepared to begin negotiations.

F[rancis] B. S[ayre]
  1. Hans Luther, German Ambassador in the United States.