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FRANCE

PERMISSION FOR AMERICAN AIRPLANES TO FLY OVER AND LAND IN FRENCH COLONIES IN THE WEST INDIES AND SOUTH AMERICA-Continued

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July 1 (223)

To the Ambassador in France

July 24

Aug. 13 (786)

Aug. 21

Sept. 3 (823)

Sept. 19

Sept. 30 (342)

Oct. 21 (953)

Nov. 17 (375)

Instructions to apply, on or before July 15, for renewal for a 3-month period, of permission granted American airline companies.

To the French Chargé

Authorization for resumption of airplane service between the
French steamship Ile de France and U. S. coast, contingent
upon the existence at the same time of French permission for
U. S. aircraft to operate in and over French territory.
From the Ambassador in France

French prolongation, for two months only, of permits to
American airline companies; observation that Air Ministry
apparently is not disposed to continue authorization after
October 15 unless American companies have begun negotia-
tions for agreement with French company. Request for in-
structions.

From the President of the Pan American Airways, Inc.

Purchase by the Pan American Airways System of the New York, Rio and Buenos Aires Lines, effective September 15, 1930.

From the Ambassador in France

Note from Foreign Office, August 29 (text printed), extend-
ing permits to American companies until November 15, re-
newal to be dependent upon conclusion of an agreement be-
tween American and French companies.

To the Chief of the Foreign Department, Pan American Airways,
Inc.

Inquiry as to the Company's wishes regarding application
for further renewal of permissions; also, what the Company's
desires would be in the event of French refusal to renew.

To the Ambassador in France

Instructions to apply, on or before October 15, for a 3months' renewal of permit for Pan American Airways, which has informed Department that conversations are proceeding with the French company looking toward an agreement. Instructions also to inform French Government that U. S. Government is still ready to negotiate air agreement.

From the Chargé in France

Advice that Department's instruction No. 342, September 30, has been carried out. Indication by Air Ministry that the renewal of November 15 (which probably will be granted) may be the final one unless an agreement is reached between the American company and the French company within the additional period.

From the Chargé in France (tel.)

Extension of permission for another 3 months.

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FRANCE

SUIT OF PRINCESS ZIZIANOFF AGAINST CONSUL DONALD F. BIGELOW,
INVOLVING QUESTION OF CONSULAR IMMUNITY

Date and

number

Subject

Page

1930 Aug. 1 (265)

To the Ambassador in France

Note for Foreign Office (text_printed) outlining difficult position of Mr. Bigelow before French courts; belief of this Government that situation is contrary to intent of convention of 1853.

(Note: Information that action against Mr. Bigelow was dismissed by decision of Paris Court of Appeals on March 13, 1933, and decision upheld by Court of Cassation on March 9, 1935.)

72

GERMANY

INCREASING STRENGTH OF THE NATIONAL SOCIALIST PARTY

1930 Sept. 15 (105)

From the Chargé in Germany (tel.)

76

Election results showing increasing strength of Hitler supporters and Communists.

Sept. 17 (486)

From the Chargé in Germany

77

Analysis of National Socialist, or Nazi, Party program and type of supporters; threat to republican institutions seen in present trend.

Sept. 19 (494)

From the Chargé in Germany

79

Sept. 23 (496)

Visit of representative to explain aims of Nazi Party; impression that policy is based on opportunism and has no definite program to remedy Germany's present economic difficulties.

From the Chargé in Germany

Further report on Nazi Party: Indications that Party leaders were unprepared for sudden access of power resulting from recent election; tendency toward moderation and repudiation of former violent and illegal methods.

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Sept. 25 (505)

From the Chargé in Germany

85

Report on political situation; failure of conservative parties to unite in settlement of questions important in maintaining republican government.

Oct.
(519)

1

From the Chargé in Germany

86

Account of testimony given by Hitler concerning aims of
Nazi Party, at trial for treason of three Reichswehr officers.

Oct. 23

89

Memorandum by the Secretary of State

Conversation with the French Ambassador, who inquired concerning the visit of Dr. Schacht, former Reichsbank President, to the Department, and was informed that the latter's visit was purely personal and social, and did not concern questions of reparations and moratorium.

Oct. 23

Memorandum by the Secretary of State

90

Conversation with the British Ambassador concerning purpose of Dr. Schacht's visit.

Dec. 3 (636)

From the Ambassador in Germany

90

Report on results of local elections, held the past two Sundays, showing widespread gains by the Nazi Party.

GERMANY

INFORMAL REPRESENTATIONS BY THE GERMAN AMBASSADOR WITH RESPECT TO DISARMAMENT AND THE POSSIBLE MODIFICATION OF THE PACT OF PARIS

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Nov. 20

1930 Mar. 22

Mar. 24 (27)

Mar. 24 (28)

[Mar. 25?]

Conversation with the German Ambassador concerning disarmament problem and European hope for American cooperation; expression of U. S. disinterestedness in land disarmament except for reasons of world security.

From the German Embassy

Résumé of verbal communication by German Ambassador, expressing willingness at all times of German Government to join in any action to promote international good will and disarmament; desire to cooperate in suggested extension of Pact of Paris by consultative clause.

LOANS BY AMERICAN BANKS TO THE GERMAN GOVERNMENT

From the Agent General for Reparation Payments (tel.)

Proposed transaction between American banking firm, Lee, Higginson & Co., and German Government for loan anticipating 125-million-dollar loan from Swedish Match Trust; indication by bankers' representative that loan is subject to Department's approval. Opinion that contract should include provisions defining use of credits.

To the Ambassador in Germany (tel.)

For Gilbert, Agent General for Reparation Payments: Understanding of bankers that Department's approval is not necessary for loan, and that French officials have given approval in principle; inquiry as to whether bankers are mistaken on these points.

To the Ambassador in Germany (tel.)

For Gilbert: Report of British and French desire to partic-
ipate in proposed loan; opinion that it is not advisable to
close American market to foreign requests for capital; request
for present views.

From the Agent General for Reparation Payments (tel.)
Information requested in Department's telegrams Nos. 27
and 28, of March 24; reiteration of opposition to loan unless
applied to existing debt.

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Mar. 25

Memorandum by the Office of the Under Secretary of State
Text of brief statement received by telephone from Lee,
Higginson & Co., to be used at signing of loan.

100

Mar. 25

Memorandum by the Under Secretary of State
Department's reasons, as stated in Cabinet meeting, for not
opposing loan.

100

Mar. 25 (30)

To the Ambassador in Germany (tel.)

101

For Gilbert: Department's unwillingness, in view of assurances received from Lee, Higginson on controversial points, to bring further pressure on bankers concerning loan.

GERMANY

LOANS BY AMERICAN BANKS TO THE GERMAN GOVERNMENT-Continued

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1930 Mar. 26

Mar. 27

Memorandum by the Office of the Under Secretary of State
Announcement of signing of loan contract in Berlin (text
printed) received from Lee, Higginson & Co.

From Mr. Thomas W. Lamont of J. P. Morgan & Co.
Financial details of bond issue in connection with loan; ex-
pectation that American market will take about one-third of the
amount, or approximately 100 million dollars.

Page

101

102

Mar. 31

From Mr. W. Randolph Burgess, Assistant Federal Reserve Agent
of the Federal Reserve Bank of New York
Exchange of cables (texts printed) with the Governor of the
Federal Reserve Bank concerning amount of American partici-
pation desirable in bond issue.

103

Apr. 4

Memorandum by the Under Secretary of State

105

Discussion with financial experts of proposed German loan and recommendation for American participation of not more than one-third.

May 21

From J. P. Morgan & Co.

105

May 22

Information concerning terms of international loan; expectation that American share will be approximately 100 milion dollars, and that an equivalent amount will be issued in France. To J. P. Morgan & Co.

106

Department's nonobjection to proposed plan.

AGREEMENT Providing for THE DISCHARGE OF GERMANY'S WAR INDEBTEDNESS TO THE UNITED STATES, SIGNED JUNE 23, 1930

1930 June 13

July 1 (124)

To the Secretary of the Treasury

Opinion that proposed agreement between United States and Germany for settlement of German war indebtedness, if signed by German Ambassador duly authorized, will constitute a valid and internationally binding obligation of the German Government.

(Footnote: Information that Secretary of the Treasury was authorized to sign for United States.)

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Press release of June 23, 1930 (text printed), announcing signing of agreement between United States and Germany providing for discharge of German war indebtedness to United States.

ADMISSION TO THE UNITED STATES OF GERMAN STUDENT LABORERS

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Request for favorable action to extend visas of German student laborers now in this country through Student Exchange Agreement, and to permit granting of visas to small group of 32 new students.

109

GERMANY

ADMISSION TO THE UNITED STATES OF GERMAN STUDENT LABORERS-Continued

Date and

number

1930 Mar. 24

To the Secretary of Labor

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Request for Labor Department's decision regarding admission of German student laborers referred to in German Embassy's note of March 21; also whether previous arrangements for admission of 100 students annually will be discontinued entirely, or whether a small number will be admitted annually on individual basis.

From the Second Assistant Secretary of Labor

Advice that order terminating student laborer agreement has been modified to provide for admission of not more than 35 applicants during 12 months beginning April 1, 1930, and that extension of temporary stay will be considered on basis of individual application.

(Footnote: Notation that German Embassy was advised accordingly.)

From the German Embassy

Fear that Labor Department's decision that no assurance
can be given for continuation of student exchange may mean
end of institution; request for reconsideration of decision.
To the German Embassy

Advice that competent authorities are unable to determine
number of students which may be admitted during year begin-
ning April 1, 1931, in view of unemployment situation in
United States.

From the German Embassy

Application addressed to the Department of Labor by the German Students' Cooperative Association, December 3 (text printed), requesting the admission of 50 students for the year 1931.

To the German Embassy

Information that German Students' Cooperative Association has been advised by appropriate authorities that no action can be taken with regard to the admission of additional students until just previous to April 1, 1931, when existing arrangement expires.

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115

RECIPROCAL TREATMENT TO BE ACCORDED BY THE UNITED STATES AND GERMANY TO CONSULAR STAFFS IN THE PAYMENT OF IMPORT DUTIES AND OTHER TAXES

1930 Jan. 8 (St. D. 2)

Mar. 27 (121)

From the German Ambassador

Request for opinion whether the United States would agree to the classification of the middle group of the German consular service as "consular officers", subject to the reciprocal tax exemption under article 27 of the U. S.-German commercial treaty of December 8, 1923.

From the Ambassador in Germany

Foreign Office note verbale of March 21 (text printed) acknowledging American note of January 2, which stated that German consular officers and clerks in United States enjoyed free importation privileges, and outlining matters still to be agreed on in interpretation of article 27.

(Footnote: Information that U. S. State and Treasury Departments could reach no agreement as to arrangement to be proposed to Germany, and negotiations between the two Governments were discontinued.)

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