462.00R296/5390
Memorandum by the Secretary of State of a Conversation With the British Ambassador (Lindsay)
The British Ambassador came to discuss the moratorium in connection with the rider added to the ratification by the Congress. I told the Ambassador that what has taken place in Congress simply indicates the difficulties which any American President faces when he goes into foreign affairs; it is evidently surprising to many people [Page 250] in Europe, but it is not surprising to us and we anticipated it—that we think we got along as well as we could possibly expect. I reminded him of the President’s point of view expressed in the joint communiqué with Laval48 and at other times, to the effect that the initiative must come from Europe and that we can only move after Germany’s capacity to pay has been taken up and settled by the Basle Committee and by the nations which meet to decide how the sacrifice in respect to Germany is to be distributed.
The Ambassador then said, “But this means that you cannot make any further step until the world has gone bankrupt.” I said, “Perhaps not, but I hope that it is not quite so bad.” I pointed out that there were a number of steps to be taken first like the investigation and report on the condition of Germany and her general situation which could be rendered impartially without exciting suspicions of ulterior motives on the part of our Congressmen, and yet without Europe going bankrupt. After a further little discussion about the difficulties of moving public opinion in such a large and diverse country as the United States, in which the Ambassador fully agreed, we separated.