840.00/323: Telegram
The Consul at Geneva ( Gilbert ) to the Secretary of State
[Received May 19—5:09 p.m.]
67. Consulate’s number 65, May 18, 3 p.m. Discussion of project for Austro-German Customs Union was concluded in this morning’s session of the Council.
Beneš20 while acquiescing in the submission of the judicial question to the Permanent Court, stated his view of the impossibility of isolating the juridical from the political and economic factors involved.
Marinkovitch21 took the view that despite Germany’s contention that the proposed union is strictly economic it has political aspects which come within the competence of the Council regardless of the legal decision rendered.
Curtius in his reply showed a resentment of what amounted to attacks on Germany’s position and a questioning of good faith of her intentions on the part of previous speakers.
Briand and Hymans22 struck a conciliatory note and the British proposal to refer the question to the Court was adopted; it is evident that a great deal is going on behind the scenes. While many are willing to offer an explanation the question is so wide in its implications and has so many ramifications it is doubtful if anybody in Geneva fully knows what understandings are being made between the powers.
While each side still upholds its belief that the decision of the Court will follow their own public expressions in this respect, neutral opinion seems to be that the Court cannot afford to give the semblance of being influenced by political considerations and that in the strictly legal points involved Austria and Germany have somewhat the better case.
If Germany and Austria should win the decision all powers have nevertheless carefully reserved their position on all but the strictly legal side of the question. This means that the political aspects of the case will come before the Council after the Court has rendered its decision. As already reported, a number of powers have exposed their opposition to the project from its political aspects. What position Germany will then take is of course yet obscure. On the other hand if the case goes against Austria and Germany it is believed that these [Page 588] powers have ready a solution which, while giving up the Customs Union idea will by means of arrangements between commercial and other interests, accomplish a large proportion of what is being sought under the Union.