724.3415/3815: Telegram

The Consul at Geneva (Gilbert) to the Secretary of State

151. Consulate’s 142, June 8, 11 a.m., paragraph 4(c). A meeting of Council states was held yesterday afternoon in which I am reliably informed the following developments took place.

1. Italy has maintained fully her previous position now however basing her attitude on the unsatisfactory nature of Japan’s reply.

This is universally regarded here as the merest pretext.

2. Great Britain raises the question of the propriety of “existing contracts” as a reservation and took the position supported by France that an unlimited reservation of such a purport would nullify any embargo measure asserting that at least such a reservation should include a reasonable time limit during which it should run.

3. Italy obviously being the state concerned the Italian representative stated that he would submit these views to his Government.

4. The British representative announced that he had just been advised by the British Embassy at Berlin that it had no news as to the German reply.

5. The following is the procedure now contemplated for continuing the consultations.

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Najera will communicate by letter with all the governments consulted enclosing, (a), a report on the situation as indicated by the replies received to date and, (b), the text of the draft undertaking (Consulate’s 144, June 8, 1 p.m.) with any amendments deemed necessary. The letter will explain that the text of the undertaking is being submitted as a model which the governments may use in communicating the action taken or contemplated individually by each government, it being fully understood that this formula is only a model and that the communication from each government may take the form which it deems appropriate. Najera will in turn inform the other governments concerning the replies received.

In the letter addressed to the states which have accepted unconditionally attention will be drawn to the fact that certain states have already instituted embargo measures and that a large number have declared themselves disposed to act unconditionally. It is hoped in this manner to attain at once an appreciable commencement of the execution of the embargo measures. In the letter to the states which have made their acceptance dependent on that of other states Najera will indicate that he will communicate to all the governments consulted the replies received from each in order that the governments which have stipulated certain conditions’ may judge whether or to what extent these conditions have been fulfilled.

6. These communications will probably be despatched on Monday.

7. The British Delegation in respect to procedure see this as only a third best which it was necessary to fall back on after failing to obtain either Council action or simultaneous action by Council states. This relatively unsatisfactory method combined with the Italian attitude renders the British frankly pessimistic as to the outcome.

Gilbert