600.0031 World Program/238: Telegram
The Secretary of State to the Ambassador in Belgium ( Gibson )
67. The Department has given preliminary study to the translation of December 16 of the confidential text of Van Zeeland’s prospective report. Please say to Mr. Van Zeeland promptly but informally that I am pleased with the general theme and tone of the report. However, sufficient opportunity has not been afforded to form a judgment in regard to the merits and purport of his plan. I should be pleased if he would care to consider the following reflections which come into my mind as a result of a purely preliminary study:
First, I believe that there would be benefit in having in the report a fuller and more systematic outline of those principles of international relationship upon which sound and peaceful international relations can alone be founded. (You may refer to the address I delivered at the Buenos Aires Conference.)33 The American Government has been endeavoring steadily over the past few years to give reiterated emphasis to these principles and they have received the widespread indorsement of most other governments. Therefore, it would seem to be appropriate that the report should bring some such statement of principle to the forefront for the attention of the governments [Page 692] whom this report may interest. Unless these principles receive effective application attempts at economic improvement through comprehensive international collaboration will always be faced with the danger that their first beneficial results will be diverted to narrow national purposes and the hope for full fruition of the program will therefore be prevented.
Secondly, the American policy of reduction of trade barriers through bilateral arrangements, the trade benefits of which are generalized in accordance with the unconditional most-favored-nation principle, has been recognized as an extremely useful means of making headway towards the aims which Mr. Van Zeeland is seeking to serve. There is a reasonable prospect that a constantly growing number of countries will join in this program by virtue of agreements with the United States, by gradual modification of their commercial policies in accordance with the underlying bases of the program, and by agreement among themselves. Its progress, furthermore, constantly stimulates new possibilities of necessary adjustments in international obligations and in the monetary field. Though it may not be open to all countries immediately and by a single step to fully participate in that program, it is in my judgment open to all of them (except those whose life is disturbed by hostilities at the present time) to begin to move in that direction. While agreeing that Europe is faced with a comprehensive problem which will ultimately require a comprehensive solution, it would be disappointing if full advantage were not taken as promptly as possible of all feasible partial measures, such as the trade agreement program; and all care must be taken lest feasible immediate action should be deferred with the thought that something more comprehensive must be developed before any important steps are taken.
Lastly, I believe there is a serious possibility that in the United States that part of Mr. Van Zeeland’s report which calls for an international gold fund, largely to be contributed from American resources, will create difficulties. Previous attempts by the American people to facilitate the adjustment of European relationships by provision of capital have proven disappointing. American press comment up to the present time, which has of course had only rumor to guide it, has focused on this point.
- December 12, 1936; Department of State, Press Releases, December 12, 1936, p. 490.↩