800.51/432
The Chief of the Division of Western European Affairs, Department of State (Castle), temporarily in Germany, to the Secretary of State
[Received November 11.]
Dear Mr. Secretary: The Ambassador has shown me his letter to you on the subject of the possible cancellation of indebtedness. Of course I cannot presume to know whether the American people is yet in a frame of mind to go in for such a policy, but I agree with Mr. Houghton that if the situation could be put clearly and forcibly before the people, it would receive hearty support. I am very sure furthermore that in its general lines, at least, Mr. Harvey23 would agree with Mr. Houghton’s suggestion. It is quite clear that politically the Democrats would gain a tremendous initial advantage if they can make themselves the sponsors of a great moral issue. The American people as a whole respond to such issues. Furthermore the cancellation of the debt, with such provisos as Mr. Houghton has included, in his letter, would be a way and the only way I can see of really winning the war. That some such encouragement as would be given by an action of the kind on our part, is essential to keep Europe sane, is not a disputable proposition to anyone who has looked over the ground here even as casually as I have. Whether the suggestion should be put before the American people through such a speech as the Ambassador suggests, would be, of course, for you to decide. Certainly it would get wide publicity and might be the beginning of education of the people, which is, of course, essential before Congress could be persuaded to take any action. The ideal method of proclaiming our intention would be through an economic conference in Washington, but such proposals could not be made as you made so effectively at the beginning of the Washington Conference on Naval Disarmament, without having public opinion as strongly back of the Administration as it was then. This is why it seems to me preliminary education is so necessary, and why the first move might usefully be made here.
I am having an intensely interesting week in Germany and am looking and listening with all my might. I am, as you know, saying nothing, and if the newspapers should quote me in any way, you may know in advance that it is not true. I saw the reporters once, because Mr. Houghton wanted me to, but that was merely to enforce what he had said, that the conference of Ministers here was entirely without significance, that they merely were getting together to report [Page 177] to each other their own information on conditions in their respective countries, and that my being here was merely because I was in Europe on a vacation and was delighted to have the opportunity to hear from them about what was going on. Beyond that I have said nothing.
Respectfully yours,
- George Harvey, American Ambassador in Great Britain.↩