Paris Peace Conf. 184.01202/65a: Telegram
The Commission to Negotiate Peace to the Acting Secretary of State
968. Oral report from Captain Gherardi on his stay in Germany lays stress on genuine wish for democracy among German people. The country is in a state of constant flux. The shell is off and the whole body is rather soft. The present Government is still encountering great difficulties but through the capture of Radek and certain members of the Spartacist group has managed to keep the situation well in hand. Present Government far from ideal as it has had to compromise with the Democratic party among whose members reactionaries are to be found. It is evident that the Majority Socialist Government will only last as long as it maintains order but it should in Gherardi’s view be given a fair chance both from without and within as if it fails no other party is in sight which is likely to insure stable conditions.
Among the members of the Democratic party is Count Bernstorff who is playing an extremely important part both in the Foreign Office and at Weimar apparently even overshadowing Rantzau who will undoubtedly head the German Peace Commission.
Field who has been directed to return to Switzerland states that attack on Eisner formed no part of a reactionary conspiracy but was the result of a personal conviction that to save the country Eisner must be removed. This was confirmed by Auer who after being wounded sent for Field to give him a message to that effect. Field states that the surgeons hope to save Auer but do not dare to let the favorable prognosis be known for fear that the patient should be lynched.
[Page 44]Report by Captain Chanler and Lieutenant Dewald of conditions in Bremen and Hamburg emphasizes fact that food and work are necessary to make present quiet condition in these cities permanent. Food will give out in April. Over 30 ships belonging to Hansa North German Lloyd and Hamburg America lines ready to sail at once. Cessation of fishing since Armistice additional hardship. No danger of interference with food ships or depots. Even Spartacists have always respected national food supply. Bolshevism will only reappear here as the result of unemployed being hungry. Unemployment would cease to be excessive in Hamburg when harbor becomes active, coal supply improves and work on farms begins. Bremen has no excessive unemployment.
Report by Major Blayney still in Germany on unemployment throughout Germany gives chief cause as the lack of raw materials due to the blockade and the break down of transportation. The latter results above all in lack of coal. Figures submitted by Government officials show 1,000,000 unemployed receiving state support of from 6 to 8 marks per day. Partially unemployed due to fluctuations in coal supply and weather conditions and those who are not registered are not included and would more than double this figure.