550.S1/1257: Telegram
The Ambassador in Great Britain (Bingham) to the Secretary of State
[Received September 19—9:35 a.m.]
270. From Atherton. As the remaining representative of the American delegation at the World Economic Conference, the Prime Minister17 sent for me last evening “unofficially and informally”. Although the Prime Minister said he only meant to discuss economic questions, he went on to express his personal disappointment that, after the hearty cooperation which existed between England and the [Page 749] United States at the time of the negotiations of the London Naval Treaty in 1929 [1930],18 when the latest American naval program19 had been determined no friendly foreword has been vouchsafed to him before its announcement.
The Prime Minister continued, that with the breakdown of the Economic Conference there was no coordinated leadership today certainly among European nations, to lead the world towards economic reconstruction. The corollary was the development of competitive blocs in Europe (Fascist, Danubian, Gold, et cetera) which tended towards international economic breakdown. The Prime Minister referred to the Economic Conference and the hopes in which it was conceived. From the point of view of achievement the Conference had been a failure and the personal blow he had received in the lack of cooperation from the United States made him at one time almost despair.
I interrupted the Prime Minister to say that if he felt that had been a general sentiment at the end of the Conference last July, and it certainly in my interpretation was not the one in this country at the present moment, when it was freely stated that last summer the United States had saved England from premature stabilization; furthermore, since that time economic factors independent of political leadership were more and more tending to drive the two countries into closer cooperation for their mutual welfare.
The Prime Minister continued that he did not believe there could be active cooperation between all the nations of the world but there must be close accord in leadership among the principal nations. He mentioned in particular France and Italy with England and the United States. Without international trade the Prime Minister explained many countries in Europe were facing internal economic starvation; but the difficulties of international trade he felt were almost insurmountable unless there was some stable and relatively certain medium of exchange. I asked the Prime Minister at this point if he had in mind action looking towards stabilization of currencies. He said yes, that was partly in his mind not only for Europe alone but of necessity to include the United States as well. He defined a stabilization not at any fixed figure but as fluctuating within certain fixed limits. He wondered as to the American situation today.
I pointed out to him that the immediate foreground of American policy was concerned with measures of recovery in the United States and every proposal certainly for the time being must be examined in relation to that program.
[Page 750]The Prime Minister said he realized this situation and added, however, that it must not appear that the work and future of the Economic Conference had ceased; rather than postpone action until after Parliament met on November 11th, when questions as to the future of the Conference would undoubtedly be asked, he had decided to take some positive step at once before it might seem that the initiative had been forced upon him.
The Prime Minister then said that as President of the World Economic Conference he had conferred with the English economists Salter, Stamp and Layton yesterday morning, followed by consultations in the afternoon with Love joy [Loveday]20 and Stoppani21 (See Gilbert’s telegram from Geneva, 187, September 14, 9 p.m.22).
On Monday next Colijn23 will arrive in London to confer with the Prime Minister on the work of his committee in particular. The Prime Minister indicated that Colijn was very discouraged; that Holland had already denounced the tariff truce, and the Prime Minister personally felt that fresh tariff measures were imminent.
The Prime Minister then informed me in strict confidence that he had decided to make a survey of the work of the Conference. Notice has been given survey would be prepared by the Secretariat of the League and present the situation from the time when “the curtain was rung down on the Economic Conference in July”. This survey would analyze economic developments that had taken place in the world since that time and invite particular attention to the fact that the importance of certain situations had diminished in the interim, while other questions had assumed great importance and emphasis. (I understand from the Prime Minister that in this particular connection he had in mind questions of competing currencies in international trade). While the work of this survey would be undertaken by the League Secretariat, the Prime Minister explained that in a considerable measure it would be studied at 10 Downing Street under his supervision. Should the United States Government desire to make any suggestions he would be very glad to consider them as President of the Conference and not as Prime Minister. The survey is to be completed and presented to him, as President, some time early in December and he then intends calling a meeting of the Bureau of the Economic Conference. The Prime Minister had in mind that the Bureau might deliberate on this survey for a period of 10 days or a fortnight and complete its labors previous to January 1, 1934.
[Page 751]In conclusion the Prime Minister stated that should occasion arise he would be very glad to continue this purely informal conversation with me. He requested that, if I telegraphed the President that I also convey to you a very warm expression of his regards and deep esteem. [Atherton.]
- J. Ramsay MacDonald.↩
- See Foreign Relations, 1930, vol. i, pp. 1 ff; for text of treaty, see ibid., p. 107.↩
- For correspondence relating to the American naval construction program of 1933, see pp. 380 ff.↩
- Alexander Loveday, Chief, Financial Section, League of Nations.↩
- Pietro Stoppani, Chief, League of Nations Economic Section.↩
- Not printed.↩
- Hendryk Colijn, President, Netherlands Council of Ministers; Chairman of the Economic Commission.↩