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Saturday night, March 10, German Foreign Secretary, von Neurath, was
 
at my house and reported that he had been authorized by the Chancellor 
 
to send Commission whenever Washington was ready -- he again discussed personnel.
 
He also revealed considerable anxiety lest delay might precipitate 
 
economic trouble in Germany. Though not close friends, he and Schacht were of the
 
same mind. I was certain, therefore, that the German authorities were 
 
unanimous in the view that a great deal depends on negotiations of new 
 
German-American trade relations; and I promised von Neurath to do what I 
 
could to expedite matters.
 
 
My suggestion would, therefore, be to expedite German matter as soon
 
as possible, for it is highly important to have the Commission over here
 
before Bond conference meets in Berlin. The fact of negotiations being 
 
under way and existence of friendly economic relations which could be 
 
advertised in Germany would have great influence in renewing confidence 
 
and in avoiding complete default on interest payments. In my judgment a 
 
suspension of payments in April would be most harmful here and the failure 
 
of commercial improvements with us would certainly make May i (always a 
 
dangerous day in Germany) more critical.
 
 
We must not assume that Schacht is willing to default. He is not.
 
He wishes to show us that Germany is not another France. All thoughtful
 
Germans indicate same attitude. They are anxious to please us. The Germans 
 
do wish lower rates of interest; and our Banker delegates agree that 6 and 7% 
 
is too high for bonds on our markets when few American securities pay more 
 
than 4% these days.
 
 
There are other points involved; but these are the main ones. If we
 
can act promptly and in conciliatory spirit we may save both peoples from
 
great losses. I had a long talk with Hitler on March 7 and he is deeply 
 
interested.