600.001/18
The Secretary of State to President Wilson
My Dear Mr. President: If you have not had time to read carefully the enclosed telegram of the 20th from Paris1 reciting the resolutions adopted by the Economic Conference of the Allied Powers,2 I think that it would be well worth reading as the results of these measures may be very far reaching on the commerce and trade of the whole world after the war is over.
The proposed measures must be viewed from two standpoints, that of their effect on the present and future trade of the enemies of the Allies, and that of their effect on the present and future trade of neutral countries.
The drastic measures against the enemies of the Allies are not only intended to strangle their industries and commerce during the war, which is of course a legitimate war measure, but they go much further and purpose to prevent as far as possible the rebuilding of their industries and commerce after the war. It seems to me that the persistence of the Allied Governments in this policy will make the negotiations of a satisfactory peace most difficult, and that the knowledge of this intention to continue the war industrially after actual warfare ceases will cause the central Powers to hesitate in taking steps toward a restoration of peace. I believe that this Conference will have the effect of prolonging the war.
[Page 312]In regard to the trade of neutrals, both now and after the war, the intentions of the Allied Powers are disquieting and I think should receive very careful consideration. We neutrals, as well as the Central Powers, will have to face a commercial combination which has as its avowed purpose preferential treatment for its members. It will be a strong combination of nations, which on account of their colonies and great merchant marine will be able, I fear, to carry through their preferential program. The consequent restriction upon profitable trade with these commercial allies will cause a serious, if not critical, situation for the nations outside the union by creating unusual and artificial economic conditions.
In view of these possibilities as to the future and the present restraints upon free commerce between neutrals as a consequence of blacklisting firms, agreements as to non-exportation, influence upon steamship companies and insurance, with the accompanying censorship of mail, would it not be well to consider the advisability of holding a Congress of Neutrals to take up these various questions and determine upon ways and means to relieve the present situation and to provide for the future?
If some step of this sort is not taken, the neutral countries acting independently will be impotent against this commercial combination. United and with some definite plan to meet the proposed measures of the Allies, I believe that the neutrals could better protect their interests by preventing radical action both during and after the war.
I have up to the present consistently opposed any action other than independent, but this economic and commercial conference of the Allied Powers with the purpose of union when peace is restored has materially changed conditions. The policy, which they propose to adopt, requires different treatment as it will materially affect our industrial and commercial life. It must be met in some practical way, and the best way to fight combination is by combination.
At least it seems to me a subject which we should consider, and the consideration of which ought not to be long delayed.
Faithfully yours,
- Not printed.↩
- For text of these resolutions, see Foreign Relations, 1916, supp., p. 975.↩