Mr. William C. Bullitt, of the Division of Western European Affairs, to the Secretary of State

My Dear Mr. Secretary: It is difficult to piece together an accurate picture of the present situation in Germany, but examination of all reports which have reached the Department up to the present moment leads to the following conclusions:

Social Democrats are in control of every section of the German Empire.
The Social Democrats of every variety agree that Germany must become a socialist Republic.
The Independent Socialists demand that the whole executive, legislative and judicial power shall be placed in the hands of workmen’s and soldiers’ councils.
The Majority Socialists, who at present are in control in Berlin, by virtue of the fact that Ebert is the Provisional Chancellor, oppose this demand of the Independents, asserting that it will mean a dictatorship of the proletariat, and propose that a Constituent Assembly shall be chosen at once by democratic elections, to decide on the future form of Government of the Empire.
The Majority Socialists have offered the Independent Socialists an equal share in the Government and have proposed to take Haase, Liebknecht and Barth into the Government.
It is as yet uncertain whether or not the Independents will accept this offer and will support the proposed Constitutional Convention or will attempt to seize the Government and to rule through the workmen’s and soldiers’ councils, which have been set up everywhere in the Empire.
A statement by the President that the United States will welcome a German Republic into the family of nations, and that the Government of the United States will assist a German People’s Republic to restore normal living conditions by sending supplies of food and other essential commodities, would greatly strengthen the Majority Socialists, and might be sufficient to persuade the Independent Socialists to cooperate with the Majority Socialists, instead of setting up a dictatorship of the proletariat.

Very respectfully submitted,

William C. Bullitt