362.115/194½
The Ambassador in Germany ( Wilson ) to President Roosevelt 36
Dear Mr. President: The German Government has not yet replied to our protest against the decree making obligatory the registration of all property held by Jews, even when those Jews are foreigners. It is impossible to be sure whether their failure to reply is a good sign or the contrary, but I am inclined to think that it is rather favorable than otherwise and that it indicates an attempt to work out some kind of an acceptable solution.
[Page 375]If this is not so, however, we may be faced with the extremely difficult position of a blunt refusal to entertain our protest. I have been casting about in my mind as to whether there is anything we can do in the event that such registration should not only be carried out, but be followed by confiscatory measures. I wish there were some way in which we could hold over them the threat of retaliation. It may be entirely unnecessary, but it may be the threat itself would be sufficient, or it may be that we will have to carry out the threat. Certainly we should not make the threat unless we were ready and able to carry it out. I confess that I cannot see what threat we could make, since I should assume that seizure of any property without due process would be unconstitutional. Perhaps however something could be done in respect to German money in the hands of the Alien Property Custodian. But I wanted to suggest the possibility for consideration, since there may be some ingenious way in which we can exercise a restraining influence upon the Germans in this matter by the possibility of retaliation.
If we do contemplate retaliation I suggest that we should put ourselves on firm ground before doing so. If the Germans refuse our protest it will be allegedly because they differ in the interpretation of the terms of the treaty. Such a controversy is clearly justiciable, and I believe before threat of retaliation we should offer to arbitrate. I should think there would be no question that an arbitral court would hold our thesis just. We could then begin to retaliate with full legal right and not on a controversial and debatable ground.
I sincerely hope that it will not be found necessary to utilize such methods. But whether it becomes necessary at this moment or not, I think it would be well to explore the ground as to the possibilities of retaliation, since the mere existence of the possibility will serve as a useful deterrent in the case of a government decidedly prone to take high-handed decisions.
I am [etc.]
- Transmitted by the President to the Secretary of State on June 16, 1938, with a note requesting the Secretary to speak to him about the matter concerned at the Secretary’s convenience.↩