File No. 763.72/7128

The Chargé in Switzerland ( Wilson ) to the Secretary of State

[Telegram—Extract]

1802. Press reports:

Swiss press, 4th, reports Czernin speech, Budapest. Austrian aim creation new world order shown in answer to papal note. Willing to lay down arms and settle questions by arbitration. Disarmament, freedom high seas, and no post bellum economic war. Onesided indemnities foolish in view of Allied ravages Central powers’ territory and colonies. If Entente leaves Central powers occupied territory Austria could give up territorial aggrandizement. Conciliatory spirit will not be lasting if Allies continue war and in that event Austria will have to demand indemnity as she intends keeping free hand.

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Wilson