2                              
 
 
"With respect to the first way out,
already concluded a considerable number of agreements
with her imports; but these do not assure her of the
major supplies of raw materials which she needs and
do not open to her for her exports the major markets
which she needs desperately -- I think they still be-
lieve that we are so eager to find am outlet for our
agricultural surplus and that agricultural interests
can exert such a pressure on ou~ Government, that an
agreement very favorable to them would be made by us.
 
 
"The second way out would be through credits....
and I rather think that the Government will place its
main reliance in that. Schacht wants a credit from us
for the purpose of propping up a regime which is daily
by its acts and by those of a Party, which it is frank-
ly proclaimed is the State, discriminating against
American imports and American interests in Germany
guaranteed by treaty and international practice He
wants a credit from us to help a regime which, by its
own acts, is destroying its capacity to repay.
 
 
Quotations from a still later letter:
 
 
"The acuteness of the export and the raw material
question has done more than any other single factor to
 
 
bring