550.S1/1089: Telegram
The Chairman of the American Delegation (Hull) to the Acting Secretary of State
[Received July 4—10:41 a.m.]
99. For the President. Conditions calculated to disrupt further regular sessions of Conference developed considerably over night. Many of us felt late last night that an improvement would occur over night but the contrary is evident. The five gold countries, namely, France, Italy, Belgium, Switzerland and Holland, speaking through their leading representatives are united in the contention that the Conference cannot hope to make satisfactory progress and therefore [Page 682] should adjourn. The British seem to be about in the attitude of only feebly and haltingly resisting this course as set forth in MacDonald’s statement below. Naturally the American delegation will continue in every possible way to avoid adjournment in the first place but if this cannot be prevented then to urge a recess with as many important committees continuing to function over a period of weeks or months as can be agreed upon. This would be our second or alternative position. The present plan unless broken up will result in one of these two courses being taken on Thursday morning.
I shall again confer with the British Prime Minister early this afternoon in a desperate effort to find common ground on which the British and Americans can stand in opposition either to adjournment or to a recess.
Governor Cox and James Warburg were present at the meeting of the committees and subcommittees this morning when the very emphatic and most unfavorable conversations and utterances on the part of the representatives of the five gold countries took place. Cox and Warburg agreed upon the following summary of these utterances by representatives of these five governments and also Prime Minister MacDonald:
“At usual morning meeting of MacDonald and heads of two commissions it was reported that all subcommittees yesterday refused to continue work on ground that your message made continuance futile. Colijn speaking for Economic Commission said that in his view it would be pure waste of time to continue Conference although certain subcommittees dealing with specific matters such as restriction of production of certain commodities might profitably be kept at work. Jung and Bonnet each agree with Colijn as to futility of continuing Conference in economic field as did Krogmann.19 Jung and Bonnet speaking for Monetary Commission said that continuation in this field was even more unthinkable. Jung who has been our staunch friend throughout stating that Europe could not throw overboard the accumulated experience of centuries for the sake of an untested experimental theory and that experimentation would have to be left to those who have sufficient resources to be able to afford it. MacDonald made eloquent plea for continuation but said that he fully realized serious nature of situation which had arisen due to your yesterday’s message. He said that Europe had no desire to interfere with internal American policy or to render your task any more difficult than it already is, but that until your yesterday’s message he had harbored the hope that you would cooperate towards finding an arrangement which would not bring chaos on Europe as the price of American success, and that while he still hoped for such cooperation from you he could not conceal that that he was hurt by the tone of your yesterday’s message which he felt to be that of one who stood apart and had little interest in the problems [Page 683] of the other nations. MacDonald, Jung and Bonnet all stated very clearly that your yesterday’s message was entirely inconsistent with what you had said in Washington. MacDonald suggested calling plenary session with a view to passing some general resolution pointing out possible ways out of the depression so as not to disappoint the entire world by complete failure and second he urged continuation of Bureau or an executive committee thereof to keep alive contacts and eventually call Conference again when present obstacles to progress removed. First suggestion found no favor on grounds that general discussion would only make impression of failure worse and vague general declarations would be useless; in other words that frank failure was better than travesty. Second suggestion agreed to subject to approval of Bureau which called for 6 p.m. today. MacDonald will recommend to Bureau Drafting Committee consisting of Chamberlin, Jung, Bonnet and Colijn to prepare resolutions for adjournment of Plenary and continuance of Bureau and such subcommittees as Bureau feels can usefully continue.20 Plenary meeting to be called Thursday 10 a.m.”
This completes the Cox and Warburg summary of aforesaid conversations. Is there anything more that you care to say or do in support of our position as above outlined first preventing adjournment and second standing for recess. The situation is thoroughly alarming with respect to these two phases. We are anxious to keep you fully advised at each stage without a moment’s delay.
- Carl Vincent Krogmann, of German delegation; Chairman, Economic Sub-Commission I (Commercial Policy); Lord Mayor and President, Government of Free and Hanseatic City of Hamburg.↩
- For resolution to this effect, adopted by Bureau on July 6, 1933, see Journal of the Monetary and Economic Conference, p. 154.↩