550 E 1/4: Telegram

The Unofficial Observer at Cannes (Harvey) to the Secretary of State

The Supreme Council voted unanimously to call a conference of “economic and financial character”, in pursuance of resolutions adopted and appended. I did not participate. The Council also voted unanimously to invite the United States to send representatives to the conference, and directed President Briand to convey such invitation through me, which he has done. The conference will be held in Genoa early in March. Statements by Lloyd George and Briand have been given to press. There was singular unanimity and harmony throughout. The only discussion was over exact phrasing of resolutions submitted by British delegation. Few changes were made. The only reference to the United States was an expression of hope by Lloyd George that the great Republic of the West would see its way clear to lend its cooperation in the effort of rehabilitation and reconstruction. He took particular pains, however, [Page 385] to add that the decision must rest wholly with the American Government and that he would not think of expressing an opinion of its action. All coincided tacitly in his attitude. There can be no question of their earnest desire for United States’ participation. The effect of the Washington Conference in getting things done promptly was manifest.

Resolutions in full follow:

“The Allied Powers in conference are unanimously of opinion that an economic and financial conference should be summoned in February or early March to which all the powers of Europe including Germany, Russia, Austria, Hungary and Bulgaria should be invited to send representatives. They regard such [a] conference as an urgent and essential step towards the economic [re]construction of Central and Eastern Europe and they are strongly of opinion that the Prime Ministers of every nation should, if possible, attend it in person in order that action may be taken as promptly as possible upon its recommendations. The Allied Powers consider that the resumption of international trade throughout Europe and the development of the resources of all countries are necessary to increase the volume of productive employment and to relieve the widespread suffering of the European peoples. A united effort by the stronger powers is necessary to remedy the paralysis of the European system. This effort must include the removal of all obstacles in the way of trade, the provision of substantial credits for the weaker countries and the cooperation of all nations in the restoration of normal prosperity. The Allied Powers consider that the fundamental conditions, upon which alone this effort can be made with hope of Success, may be broadly stated as follows:

1.
Nations can claim no right [to] dictate to each other regarding the principles on which they are to regulate their system of ownership, internal economy and government. It is for every nation to choose for itself the system which it prefers in this respect.
2.
Before, however, foreign capital can be made available to assist a country, foreign investors must be assured that their property and rights will be respected and the fruits of their enterprise secured to them.
3.
This sense of security cannot be reestablished unless the governments of countries desiring foreign credit freely undertake (a) that they will recognize all public debts and obligations which have been or may be undertaken or guaranteed by the state, by municipalities, or by other public bodies as well as the obligation to restore or compensate all foreign interests for loss or damage caused to them when property has been confiscated or withheld (b) that they will establish a legal and judicial system which sanctions and enforces commercial and other contracts with impartiality.
4.
An adequate means of exchange must be available and generally there must [be] financial and currency conditions which offer sufficient security for trade.
5.
All nations should undertake to refrain from propaganda subversive of order and the established political system in other countries than their own.
6.
All countries should join in an undertaking to refrain from aggression against their neighbors.

[If,] in order to secure the conditions necessary for the development of the trade in Russia, the Russian Government demands official recognition, the Allied Powers will be prepared to accord such recognition only if the Russian Government accept the foregoing stipulations.”

Harvey