Paris Peace Conf. 184.01202/9

Captain W. R. Gherardi to the Commission to Negotiate Peace

No. 2

Subject: Political situation.

1.
The past few days have seen the outbreak of the Spartacist troubles which were expected as an attempt to disturb the National Assembly.
2.
The Spartacist movement at present is strongest in Dusseldorf, Hamburg, Bremen, Kiel and Brunswick. These towns with the exception of the latter are of the greatest importance to the government as they control the routes by which food might enter Germany; Hamburg and Bremen representing the most feasible seaports and Dusseldorf controlling the big railways crossing the Rhine. For this reason these towns are also large industrial centers and suffer therefore [Page 6] from the consequences of unemployment and of the difficulties of food supply.
3.
The first energetic action on the part of the government was taken against Bremen where it appeared on Saturday that the Spartacists would comply with the government’s demands. They appeared willing to resign in favor of a city government composed of members of all parties in proportion to their voting strength but refused to surrender their arms except to Hamburg troops. As these, however, were as radical as the Bremen workmen, the government refused to concede this point and a volunteer division of loyal troops entered Bremen with some fighting. It succeeded in clearing the town of Spartacists but has not yet been able to disarm them as they have retreated to a point outside Bremen.
4.
In Hamburg a Spartacist movement in sympathy with Bremen has begun; the Spartacists have threatened to burn the food supplies in case of attack. The inefficiency of local guards has been shown by the ease with which Spartacists were able to disarm them.
5.
Similar movements have occurred at Kiel and Hamborn. At Dusseldorf all tradesmen, doctors, lawyers, apothecaries and all officials have entered upon a protest strike against Spartacist rule.
6.
The Government possesses volunteer troops which agree to support the Republic and to ensure untrammeled elections.
7.
The National Assembly meets today. It is proposed that a cabinet of seven Socialdemocrats and seven members of the German Democratic Party and of the Centre will be formed. The cooperation of the Centre, however, is not yet assured, although its left wing would lend itself readily to such an alliance. An offer is said to have been made to the Independents by the Majority Socialists of a fusion. No success can be hoped for this and it represents a purely formal action on the part of the Majority to ensure it against any charges of refusal to join its former associates.
8.
Dr. Taylor and Mr. Vernon Kellogg, of the Food Commission, are here and in consultation with the German food authorities. It is evident that the state of German finance will govern the amount of food which can be purchased for importation. It is probable that German credits which the Allies will permit her to use will not be large. The big industrial heads will seek to use as much as practicable for importing raw stuffs on which employment rests, and the German food control will want to bring in quantities of food. A compromise will result, but it is probable even with sufficient shipping granted there will not be more than a bare necessity of food and work for a long time. There are two hundred and fifty thousand unemployed in Berlin and little desire shown to accept work as a considerable daily sum is given to each unemployed.
9.
Reports are circulated to the effect that a strong movement in the National Assembly has set in against Erzberger because of his consent to the taking of German merchant ships by the Entente. It appears that this opposition which reaches from the extreme right into Social-democratic circles, intends to remove Erzberger from his place as Chief of the German Armistice Commission, or at least to insist that the next armistice convention be ratified by the National Assembly.
W. R. Gherardi