462.11 Se 8/39

The Secretary of State to President Wilson

My Dear Mr. President: I enclose, for your consideration, a draft of reply40 to the German note on the Frye case,41 which has been prepared by Mr. Chandler P. Anderson. He also submitted with the draft a memorandum on the case which explains certain features of the draft.

It seems to me that the proposed reply is excellent and takes a very consistent attitude on the questions in dispute. It furthermore introduces the principle of arbitration which, if once adopted, may be extended to other subjects of difference.

I am also enclosing a printed copy of the German note on the Frye case.

Faithfully yours,

Robert Lansing
[Enclosure]

Memorandum by Mr. Chandler P. Anderson on the “Frye” Case42

There is a special purpose in the answer I have drafted in the Frye case which requires a few words of explanation.

Apart from the advisability of settling by arbitration the questions at issue in this case, it is to be hoped that this resort to arbitration will make easier the adoption of similar action in dealing with the differences between the two Governments about submarine warfare against, merchant ships. In that case, however, it would be absolutely essential [Page 466] for the purposes of the United States Government that Germany should suspend her illegal operations pending the arbitral award, and it is anticipated that Germany will refuse to do this unless in our negotiations with Great Britain about their violation of our neutral trade rights, we insist that they also discontinue their unlawful practices pending arbitration. The present case gives an opportunity to ask Germany what its position is on this point, and it is for the purpose of getting a statement of Germany’s position that the last clause of this note has been framed in the form of an inquiry.

If it becomes necessary for the United States to express its own views on this point, my suggestion as to the position we should take is that in cases involving the destruction of life, the action complained of must not be repeated pending a legal inquiry as to its illegality, but that in cases involving merely the loss of property, which can be measured by money damages, a modus vivendi should be arranged on a basis which will avoid so far as possible destruction of property pending the decision of the arbitral tribunal.

This rule would apply equally in our dispute with Great Britain about unlawful restraints of trade, and in our dispute with Germany in the present case, and it draws the essential distinction between these cases and the Lusitania Case so that if arbitration is offered there, we can insist, pending the decision of the tribunal, that there shall be no repetition of the course of action complained of while it is under judicial investigation.

If it be found that Germany is unwilling to adopt this course, then it will be necessary for the United States Government to consider whether it is possible to submit to arbitration our differences with Germany.

Chandler P. Anderson
  1. Not printed; for the reply as sent, see ibid., p. 504.
  2. Ibid., p. 493.
  3. Filed separately under file No. 462.11 Se 8/39½.