That is correct Mark. Otherwise there could be no acknowledgement of foreign certificates period. If the instruction was received in a country covered by ICAO rules (and a properly certified instructor at this) the training is fully accepted for FAA Certs. Germany is and so are most surrounding countries a member state of ICAO.
Went through it, got the shirt. The only thing a German CFI cannot do is give you a Flight Review, IPC, or recommendation for a Checkride to be used in association with the FAA. Thats it and it's a mutual rule. I have not logged some 600 hours of flight time, because the rule "It's your logbook, log whatever you want" does not hold much water anywhere else. It's hard to get a revocation or suspension after showing your logbook to a Fed ironed out. I used to maintain a European PPL besides my US tickets. The Germans also only recently allowed block time to be logged. The time in my log represents takeoff to landing time only, so people cannot taxi around to renew their license or boost their times with it. Well, they could, but taxitime used to be non flying time.