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PSF Great Britain: J. Ramsey Mac Donald 1933,1937 PSF: R.TTac Jonald MINISTER Pensible 10, Bowning Street, STATE Personal & Private. biteball. 10th February, 1933. Dear Mr. Roosevelt, I am making bold to write you this letter explaining some of our difficulties here, so that you understand them at first hand. It is in no sense official. I am most anxious that we should find a way to solve the really great difficulties which have to be surmounted in dealing with the Debt. (You know how I put Anglo- American good relations in the forefront of the things absolutely essential to the regeneration of the world.) We have a double problem with the United States on the one hand and Europe and the world generally, on the other. How are we to bring both together in one solution, or any solutions? Were we dealing with you alone, the problem would be comparatively simple and would proceed somewhat on the lines which a friend of yours explained to us a fortnight ago. We should consider together something which would substantially scale down our indebtedness and leave it in a position which both of us could accept. When we turn to the / the other side of our problem, the matter is not so easy. At Lausanne we had to meet the European situation, the characteristic features of which may be summarised thus: (1) The German payments had become impossible, especially after the Moratorium, and we were faced a year ago with repudiation. Had that begun, nobody could foresee the terrible disasters both in finance and in politics which would have followed. Repudiation is a malady which spreads like foot and mouth disease. Not only would Government financial obligations be smashed, but commercial debts would be involved, and a series of bankruptcies would have followed of the gravest character. (2) Our debtors, especially France and Italy, would have ceased payment to us. The Moratorium had already cost us a good many millions of pounds which we were perfectly willing to forego had a final settlement been reached, but no such settlement appeared to be possible and a complete breakdown was facing us. (3) The virtual bankruptcy of certain mid-European States / PRIME STATEMENT 10, Downing Street, Whiteball. States would have become operative. Whole masses of the people of Europe would have been reduced to starvation; international trade on this side would have been brought to a standstill, and we should have had to face a condition of things in finance, trade and political unsettlement, which have not been experienced for many generations. Communism would undoubtedly have planted its flags over the greater part of Europe. When I went to Lausanne, the outlook was of the most gloomy kind. The difficulties, however, were overcome for the time being, but, in the process of settlement, we had to face hard realities. I have always regretted that at Lausanne we were deprived of the benefits of American parti- cipation or even American advice. You will remember that Mr. Hoover's attitude was 'let Europe settle its own diffi- culties and then approach us'; and the approach, we were warned, would not have to be of a representative European body, but of individual nations. We were put in a very hard corner. During the whole of the hectic weeks of the Conference I did my / my best, with the loyal backing of my colleagues, to keep in mind at every stage the American position. The result is that whether America formally recognises it or not, no settlement with any European nation can meet the present situation unless it is, in fact, one which will keep the Lausanne Agreement going and enable it to be ratified. In other words, the American settlement must be a European one as well, so that when it is made you and we together will have enabled Europe and America to begin anew a restoration of commercial transactions and trade. This will have to be based upon confidence between the nations, and the establishments of currencies which will have some- thing like a stable international value, to be used for the ordinary operations of international commerce. All this, however, will be fully explained to you when you see our Ambassador. What prompted me to have this direct personal communi- cation with you was another set of problems, namely, how are we to conduct our negotiations? My last visit to America was preceded by a very full exchange of views between Washington and London. The naval positions of both countries / PRIME MINISTER 10. Downing Street, STATE Thiteball. countries were discussed through your Embassy here, with myself; and all the points that were to be raised in the course of the discussions were thoroughly explored and differences brought down to very definite proportions. When that was done, I went to America and finished the business. We have found that, on this occasion, that could not be done, so that if any Minister were to go to Washington now, he would have to deal with a great budget of questions upon which no exchange of opinions has taken place. After seeing you and discovering what you wished to have discussed and how the discussion should take place, he would require to send very lengthy and elaborate reports to the Cabinet here and begin with the Cabinet an exchange of views under rather unsatisfactory conditions. Things would go, at any rate at first, very slowly. The press in both countries would as likely as not, be pernicious, and as our House of Commons is sitting, Questions would be put daily on how matters were proceeding. That is a situation which I do not like. Moreover, we should desire to exchange views with you - and I believe you reciprocate that desire - on some important subjects / THING subjects which are really international and which, if other European nations felt were being agreed to without their presence, might make it impossible for either you or us to reach the wider agreement upon them which is absolutely necessary if they are to become part and parcel of a world settlement. You will find again and again that it is not always the substance of proposals which creates trouble, but the way they are brought out. We ought, therefore, before any Minister goes to Washington, to agree upon what we are to discuss and how we are to discuss it. I think you will agree with these proposals: (i) you and I in our hearts wish to secure for the next half century or so the closest friendship between our two countries and the firmest confidence in each other; (ii) not only a settlement of Debts, but a co-operation in world policy on such matters as peace, disarmament, a restoration of trade, is to be our aim; and (iii) we must secure between ourselves an exchange of views which will, by the sheer consequence of mutual understanding / their other IT PRIME MINISTER 10, Downing Street, Whitebull. understanding, give us a very great measure of co- operation in all the international conferences now sitting in which we are mutually interested, not only as separate states but as states responsible for the peace and happiness of the world. I am afraid that as the outlook now is, we cannot get into real touch until after the beginning of March, though our Ambassador will see you before then and give you much information. But I would suggest that you discuss at once with our Ambassador your views upon the subjects about which you would like to confer with us. We shall then give you our opinions and by rapid exchanges of reactions, settle the purpose of a conference between you and a British Minister, which might be held quite soon $0 as to help you with your public opinion. There will be no attempt at this stage of our relations to settle Debts but to examine various possible schemes so that we might officially understand each other's position and the conditions in which each of us find ourselves making an agreement difficult. When that is done, the personal negotiation stage would have been reached. The objections to this way of handling is only too apparent. It will mean time, however rapidly we may get mean through it. But as an offset to that, it will A - I hope - success, for the inevitable consequence of failure to agree is really too terrible for me to contemplate. Before leaving the thoughts which I am now trying to express, I must point out again, and emphasize, that in everything we do we must not isolate ourselves from the rest of the interested nations, otherwise we on this side will only have gone out of the frying pan to find ourselves in the fire. This is a very difficult problem. I suppose you find that public opinion in your country presses you to carry out your decision that you can only deal with nations separately. I think you will find that to be very awkward in actual working, and the only way that I can see through it is that in any conversations we may have you and we will have to strive to come to understandings which can be applied to your debtors and ours for we are both a debtor and a creditor state. PRIME MINISTER 10, Bowning Street, STATE Thiteball. Then the question arises, what Minister or Ministers should go to Washington, when the stage has been set. Of course, I should like to go myself. A sea voyage and friendly contacts with you afterwards would be to me, however difficult the work, a pleasant interlude, but my hands here are so full almost beyond imagination that to leave the country for any length of time and for such a far away destination, is not very possible. Moreover, if you and I met we would have to pull off some big agree- ment. Failure in that respect would do both of us very serious damage and would badly affect our Governments. Therefore, good preparation would have to be made for the visit, and we should have to find ourselves in a position when a satisfactory agreement would be very possible. Before I went to see your predecessor we spent some months in preliminary negotiations through the American Embassy here. I believe, however, that if a British Minister went to Washington as soon as possible the effect would be excellent / excellent, but even a Cabinet Minister must bring away something. I have been turning this over again and again in my mind since I saw your friend here a few weeks ago. I think you are a little bit too optimistic as to the time- table, and if you are to meet your Congress shortly you will not be able to go very far as regards settlements. You might be able to go a good long way so far as under- standings are concerned, but I come more and more definitely to the conclusion that, if we agree that War Debts must be set in a large programme of agreements, you will have to face the possibility of postponing payments in June. That will, no doubt, be a hard thing for you to do, and you can depend upon my helping you in every way I can to avoid it, but the more I think it over the more the doubt in my mind of the possibility of this deepens. It would not require to be a very long moratorium, as far as I can see at the moment, and it could be arranged between us not for itself and in relation merely to the specific problem of War Debts, but in order to allow time for a full consideration / PRINE MINISTER 2 10. Doivning Street, STATE Thiteball consideration of the wider set of problems which we would be reviewing. When all these preliminaries were done, I should then be very delighted to run over to Washington for a comparatively brief time and help to dot the 'i's and stroke the 't's and finish the sentences, and with you do something that would draw our two countries closer together and launch them on a great policy of world recovery, inspired by ideals far firmer than mere cash relationships or political documents that are only patched up affairs. In my mind there is a common ideal and a common outlook which I should so like to be made effective during your term of office and my own. I repeat that this is purely a personal communication which I have been emboldened to make because I am so convinced that we look upon all these problems from the same standpoint and that we have enough influence to bring our two countries to see them as we do. You will therefore please not use this letter in the official communications which must pass between our respective Governments. Our Ambassador will meet you and tell you everything official about us, and he will / will have his instructions as to what to say to you about our thoughts and intentions. I hope most sincerely that you have entered upon a term of office which will give you much satisfaction and bring you great success, and in sending my kindest regards to you I make bold to join Mrs. Roosevelt's name with your own. I have had a good many letters during the last month or two from mutual friends on your side, and the warmth of their references' to you warm my own heart as regards the prospects of our relations. Believe me to be, Yours always sincerely, P.S. 9 am still hondering only the problem 1 time because I am not give happy about it. & you comes sel on rapidly with Linday mm m visit 2 am willing to The Hon. F.D. Roosevelt, The Executive Mansion, make might be materially hasband Albany, New York. U.S.A. rany notsent tile PSF Pus. Personal and Confidential Dear Mr MacDonald: [Fabruary 1933] I was delighted to receive your letter of February 10th, and I hope that you will continue to write to me unofficially until I have the pleasure of talking with you face to face. I regret that you feel our meeting must be long delayed. I had hoped to see you soon. And your letter strengthens my belief that if you should visit America we would not find it difficult to establish a personal relationship of absolute confidence. You express my own thoughts when you write: "You and I in our hearts wish to secure for the next half century so the closest friendship between our two countries and the firmest confidence in each other." I thank you also for stating so frankly your view of the line by which we should approach our task. I shall attempt to be equally frank, since it is only by mutual frankness that we shall be able to achieve the collaboration we both desire. I was gaad to note at the outset of your letter the statement: "Were we dealing with you alone, the problem would be comparatively simple and would proceed somewhat on the lines which a friend of yours explained to us a fortnight ago." From the remainder of your letter, I gather that your difficulty in accepting that line of approach arises from an apprehension that we desire to "isolate ourselves from the rest of the interested nations." I can assure you that we desire no such thing. On the contrary, I have already established contact with the French and shall do so shortly with the other interested nations. Your difficulty in regard to the Lausanne agreement I think I understand. But I feel that I must add a comment to your statement: "no settlement with any European nation can meet the present situation unless it is, in fact, one which will keep the Lausanne Agreement going and and enable it to be ratified." Is it not true that in view of recent developments in Europe it may be most difficult, even impossible, to obtain ratification of the Lausanne Agreement but that, ratified or not, it will "keep going? The possibility of payments by Germany over and above those envisaged by the Lausanne Agreement seems to me somewhat remote. We cannot, of course, take any official responsibility for the maintenance of the Lausanne agreement, and obviously we cannot comment in any way on settlements which you may or may not make with your own each of debtors. But we may say that we hope to reach agreement with our debtors by way of the line of approach which you discussed with our mutual friend some weeks ago. I am under the impression that such settlements could in no way diminish the chance that the Lausanne Agreement may MM "keep going." In any case, please do not forget that so far as we are concerned the Congress of the United States has the final word in this matter, and that I am certain Congress will not under any conditions go beyond the line indicated. Congress may well not go that far. Congress will certainly not go further. That brings me to the question you raise toward the end of your letter: the question of a possible moratorium on June 15th. It is entirely beyond my constitutional powers to promise any such moratorium. I am bound by the resolution of Congress. Furthermore, in the interest of establishing a realI collaboration between us, I must tell you frankly that if we were still in disagreement over questions of importance I should not recommend such a moratorium to Congress. If on the contrary we had reached agreement and all that was needed was in your own words, "to dot the 'i's and stroke the 't's and finish the sentences, and if you were about to come over for that purpose, I should in courtesy to you recommend a slight delay. The entire matter presents itself to me at the moment inthe following light: There are a number of problems which must be solved if the economic life of the world is to be revived. It is undesirable to establish an order of priority in regard to these problems because the solution of each and every one of them is essential for a restoration of prosperity. lie should seek together the best solution for each problem individually and not bargain one solution against another: but we should reach our final solutions of all at the same time. We should, therefore, discuss simultaneously methods to revive international commerce, tariffs, monetary questions, the gold standard, silver, debts, etc. For example, concurrently we should attempt to devise ways and means to enable countries, which today have depreciated currencies, to return to the gold standard at the same time that we adopt our other remedies for curing the present economic illness of the world. In these problems today it seems to me that speed bs of the essence. Let us above all avoid a long drawn out conference like the disarmament conference. But let us also avoid an abortive conference. I heartily second your proposal that we should enter upon a rapid exchange of views through the embassies in Washington and London. And I thank you for your thoughtfulness in suggesting that a British Minister might perhaps come over. But I must tell you frankly that such a visit, however agreeable to me personally, would not "help me with my public opinion", and that since Sir Ronald will have the matter at his finger tips it seems to me that the introduction of another personality might tend to delay father than expedite agreement. Of course I do not refer to a visit of yourself. I remain most anxious to talk with you at the earliest possible moment. A thought in this connection occurs to me. Sir Ronald communicated to me your suggestion that the Economic Conference should perhaps be held in Washington rather than in London. The French, I find, would also approve of Washington. If you and I should decide that was desirable, would you consider coming over to open the Conference? Then without prejudice to either of us,we could establish the personal relationship which I believe may be of the utmost importance for the future relations of our countries. And we could give orders to our subordinates to reach solutions in these economic questions which are, after all, but obstacles on the road to the great collaboration we both desire. In my opinion it is essential that we should from now on approach our mutual problems not as traders intent on driving hard bargains but as intimate friends attempting to help each other to find solutions for questions which involve the welfare not only of our own countries but of all mankind. Every good wish to you and the hope that we may meet soon. Yours always sincerely 16 PSF: R HT.. 2 He 74/-133 Please thank President for submitting terms of invitation with which Prime Minister is in complete agreement, Terms of suggested form of acceptance are as follows:- I am most touched by your friendly invitation to me to come to Washington to discuss with you the preparations for the World Economic Conference and the need for making further progress toward practical disarmament. My Colleagues with whom I have discussed the matter urge me to agree; and it is with the greatest possible pleasure that I accept your invitation. If it is convenient to you I will leave England by the "Berengaria" on April 15th returning by the same boat. I shall be very happy indeed to stay with you at the White House. If President concurs we suggest publication of his invitation and of Prime Minister's reply in morning papers of Friday, April 7th. Miss MacDonald would accompany the Prime Minister. file PSF : Mo. [(orine) CABLEGRAM. pus onces The White Bouse, Mashington. 1WU MO CABLE 6:29a.m. 29 Southampton, April 15, 1933 The President, The White House. Thank you very much for your cable I am leaving in wonderful weather which I take as an omen. J. Ramsay MacDonald. PSF: whi 4-21-33 PRESS CONFERENCE - PRIME MINISTER RAMSAY MacDONALD HELD IN THE PRESIDENT'S OFFICE FRIDAY, APRIL 21, 1933 - 6.35 P.M. The The Prime Minister: How do you do? I think some of us have met before, have we not? Mr. Durno: Yes. There is quite a large crowd, Mr. Prime Minister; they will all be in in just a second. The Prime Minister: Yes. Well, I am very glad indeed to see you again. Will we come to an agreement with each other? Please do not quote me verbatim because I make it a rule that when that takes place I must always see the copy before it is printed and that is much too great a bother to you and, besides, I am not going to say anything that is worth quoting. (Laughter). Well, you understand that I have only just set foot again in America this forenoon and it would quite obviously be most improper for me to make any statements whilst I am still full of innocence. (Laughter) I must know a little more before I venture to make statements. And I am sure that you understand quite seriously that the importance of my meeting your President now is so very great -- not merely for your country and for mine, but for the whole world, -- that any one occupying my - 2 - position must be very, very careful that a loose word or an ill-considered sentence is not going to make mis- understanding and difficulty for the final success of our meeting. My experience with the American journalists has always been that they are faithful copywriters when you are perfectly honest and straight with them. Some- times, in other quarters, I have heard how difficult the American journalist is. I always say I have never experienced that. Some one else might have but that has never been my experience and I am sure that an old ex- perience of mine is going to be repeated on this occasion. Well, now, what can I say to you? Q. Mr. Prime Minister, is Great Britain prepared to cooperate with the United States in restoring -- The Prime Minister: If you wouldn't mind -- just one minute. What can I say to you? Whatever I say to you must be prefixed by an expression of most sincere pleasure in meeting you all again. You know the purpose of the conversations -- the great purpose of the conversations. It is in a sentence to try, with the President and myself -- with others -- with other nations -- to try and find some sort of solu- - 3 - tion for the most extraordinary and very, very tragic breakdown of our economic mechanism. The farmers and some of the very best types of human beings -- and certainly some of the hardest working and most honest of men and women. Our skilled mechanics -- I know them so well -- I can sit by their firesides and talk to them as man to man. Their skill is great; their thrift is magnificent; they are self-respecting and their uprightness is beyond reproach. They have been saving; they have been men and families of most exemplary character, yet they with their families are today in a state of dire distress. Theremust be something wrong when that is true. It is not a national problem. Of course nations can do a good deal to elevate it within their own boundaries, but what we have all got to get into our heads -- you of America, we of Great Britain, is this: That no nation can solve it of itself. We ha ve got to lay our heads together. We have got to lay our heads together as friendly cooperators, and that is why I have come here and why your President has invited me to come here and why I have come here on this occasion. - 4 - We want to discuss together the calling of this international conference which is going to be held and more clearly define national problems and the situation which I have just described. We want to consider how those problems can be solved. Why is it that the international faith of the world is shrinking and shrinking and shrinking? There are a great many of us, those in particular described by Abraham Lincoln as people for whom God must have had a special affec- tion because he has made 80 many of them, who really work for a living, some by muscle, some by brains, some by imagination -- the man or woman who writes a great poem that inspires us to good life and great deeds is as much a producer in the world as the man who by the exercise of his muscles takes coal from the bowels of the earth and sends it up so that it may be available for our grates. Why is it that the exchange of goods, the volume of international commerce upon which we have to live, is getting smaller -- smaller -- the stream is getting shallower and shallower? God didn't mean that! It certainly must be a mistake on the part of man. - 5 - We are going to talk about that during this week- end. As I said, I don't know that at the moment I can say very much more than that. I dare say there will be other subjects -- I don't like --- you certainly are not to quote this now, but somehow I feel very fond of your President. I have got a sort of feeling that there is a good colleague with great spiritual power. And what can we do in public life without sincerity and spiritual power? A lot of people think that politics is a somewhat degrading occupation. Rubbish!-- rubbish! It is the most elevating of occupations. I call it service. It is the most elevating service that any man or woman can be called upon to perform. It all depends an the spirit in which you do it. Some of us come from very humble origin -- haven't forgotten and never will forget -- and using their influence and au- thority in order to place people where they can put their energy to useful purpose. What better service can we give to the community? And I believe that is the spirit of President Roosevelt, who is now my host. I say, "Don't quote that", for I am just talking to friends, talking to men and women with whom I should like to come - 6 - into a personal understanding 80 that if you damn me, your conscience will trouble you in doing it. (Laughter) I know -- I know perfectly well. I whirled a pen myself and probably, when these hectic days have gone over, I may have to return to it and I shall do it with a great deal of pleasure if I do. So I know the insides of newspaper offices. I know that newspapers will oppose and object to things, but I should like, especially on this matter, which is not a parliamentary matter, which is not a sectional matter, which is not an American matter, which is not a British matter, that the critical press should be seized with the determination to help. Because if we could only get that -- but don't make any mistake about it, it is going to be very difficult, but we will. When we went through a crisis in Great Britain a little over a year ago -- getting on to two years ago, what did we do? We said that all those things that are petty and small minded and partisan must go. We have fought, but now for the time being a truce to this pettifogging partisanism and I am glad to say that every newspaper of any reputation in the country responded -- I say every newspaper of any reputation. - 7 - My friends, it calls for a union of nationalities. Not that we get in alliances with each other -- not that we get tied up one to another -- not at all. But it is a union of nationalities, appreciating the nature and im- portance of the problems and laying their heads together in order to find common ways to get commonly held solu- tions. My friends, we hope so to do it. I am not going to say any more because I am going to speak tomorrow at the Press Club and by then I shall, perhaps, have been able to find my bearings a little more. This is only just a "How do you do?". This is an intro- ductory -- a re-introductory to many of us -- shaking of the hand. If you would like to put questions I hope you will be discreet (laughter). If you are not discreet, I can assure you that I shall show you a very good example. (Laughter). Mr. Boettiger: May we put one very discreet question? Will you discuss war debts with the President? The Prime Minister: The question of debts is one of those things -- one of those features in the landscape that we have got to survey. Q Have you any suggestion to make to the President in your discussion of the debts when you survey that far? - 8 - Q. Do you think it would be indiscreet to ask if Great Britain is prepared to cooperate with the United States in the restoration of the monetary standard based on a reduced rule? The Prime Minister: You have not put one question; you have put a dozen. (Laughter) The United Kingdom has been hoping for a long time for the opportunity of con- sidering with other nations how best to establish stability in monetary systems. Q. Will you discuss the stabilization of Sterling -- (inaudible) The Prime Minister: We have been trying for a long time to give more stabilization and certainty to money. Q. Can you tell us your idea of some things that might be done to meet present problems? The Prime Minister: Not at this stage. You see, we have come to just exchange views -- especially myself. I am your guest. You see, I am your guest and I must behave as a guest. But I can assure you all that there is going to be no holding back. No holding back. We are going to pull what is in our heads, whatever it may be and whatever value it may have. - 9 - Now, during the time I am here -- it is only just this week end -- as you can imagine, there is a tremendous amount of work that has to be done in London and it is not convenient to be away long, so I am really only going to spend, much to my regret, what we call at home a "long week-end". A long week-end is from Friday to Tuesday and I am afraid that is about all I can spend here -- as I say, very much to my regret. But during that time my friend, Mr. Wright -- I think probably some of you know him, he has been in Washington before -- he will be the liaison officer between and I am sure he will help you with information in every possible way. I think he would like to say something to you before we part this afternoon. Q. Might I ask this question? I think it is timely. In your opinion, is there any intrinsic validity in the criticisms -- we have cables reporting the edi- torials in London papers as criticizing the monetary policies of the United States -- the motive because of the effect on the proposed conversations. The Prime Minister: Well, I have seen nothing -- I have seen hothing. What you might call the crisis -- - 10 - the change, took place while I was on the Berengaria and I cannot say. I have read no newspaper. It is literally true that I have read no newspaper. I will try to do it tonight before I go to bed or after I get to bed. I am quite willing to say this: All this talk about conveying enmity -- it is not in my heart -- it is not in the hearts of my colleagues nor the British Govern ent. If little bits have cropped up -- well, we are all human -- but even that is not in my heard and I am sure it is not in the hearts of my colleagues. Realize that we are going through a very difficult crisis and do not let us begin to say -- do not let our people say the U. S. have been work- ing under some curious policy and do not let you say that we have been working under some curious policy. I can assure you -- I certainly can speak for ourselves. It is not true -- it is not true. It does not exist. Now I think I will leave you in charge of Mr. Wright. I had a rather tiring day. (Discussion about pictures) Well, so far as I am concerning, I have no objection to a photograph being taken in this room of my friends and myself. (Pictures) I was just going to say that so far as I am concerned - 11 - I am standing at this particular spot on the instructions of the President who wished me to intervies sitting in his chair and standing athis desk. So you see, we are getting on (applause) I am very glad to be photographed here with you and I talked very sincerely. Thank you. Thank you so much for coming here. (End) PSF R. ITTacTionald [April ? 1933] Today was occupied in a though survey of the business of the Divarmament Conference at geneva Substantial hargooss was mak, it was felt by both the President + the Prime Minister that the usults of the tay's conversation would considerably advance brth the prospect of the Success of the Diarm Conference 90/ the internal Eam Confee The President will continue the Discussion of Jijarmament problems with M. Herriot. an hisarrival PSF R. The Bound & mistetland IMMEDIATE RELEASE April 26, 1933 FOR THE PRESS JOI" STATEMENT BY PRESIDENT ROOSEVELT AND PRIME MIN STER MACDONALD As stated yesterday, our discussions on the questions facing the World Conference were not designed to result in defini- tive agreements, which must be left to the Conference itself. But they showed that our two Governments were looking with a like purpose and a close similarity of method at the main objectives of the Conference, and were impressed by the vital necessity of assuring international agreements for their realiza- tion in the interests of the peoples of all countries. The practical measures which are required for their realization were analysed and explored. The necessity for an increase in the general level of commodity prices was recognised as primary and fundamental. To this end simultaneous action needs to be taken both in the economic and in the monetary field. Commercial policies have to be set to a new orientation. There should be a constructive effort to moderate the network of restrictions of all sorts by which commerce is at present hampered, such as excessive tariffs, quotas, exchange restrictions, etc. Contral Banks should by concerted action provide an adequate expansion of credit and every means should be used to get the credit thus created into circulation. Enterprise must be stimulated by creating conditions favorable to business recovery and Governments can contribute by the development of appropriate programs of capital expenditure. The ultimate re-establishment of equilibrium in the international exchanges should also be contomplated. No must when circumstances permit re-estrilish an international monetary standard which will operate successfully without depressing prices and avoid the repetition of the mistakes which have produced such disastrous results in the past. I' this connection the question of silver, which is of such importance in trade with the Orient, was dis- cussed and proposals were tentatively suggested for the improvement of its status. These questions are all inter-related and cannot be settled by any individual country acting by itself. The - achievement of sound and lasting world recovery depends on co-ordinating domestic remedies and supplementing them by con- current and simultaneous action in the international field. The proposals examined will be discussed with the representatives of the other nations who have been invited to Washington with a view to securing the fullest possible measure of common understanding before the Conference meets. It is the hope of both Governments that it may be possible to convene the Conference for June. The have in these talks found a reassurance of unity of purpose and method. They have given a fresh impetus to the solution of the problems that weigh so heavily upon the most stable, industrious and deserving men and women of the world - the human foundation of our civilization whose hard lot it is our common object to alleviate. PSF: missLettend R. Mechald FOR THE PRESS INDIATE RILEASE April 26, 1933. PRESS CONFERENCE - PRIME LINISTER MACDONALD The President's Office, April 25, 1933 - 10.10 A.M. THE PRIME MINISTER: Good morning. Well, I brought good weather and I have left good weather. I think that ought to be reckoned in whatover settlement is going to be made between us. How much value do you place upon a good day? You had better credit me with that. Well, I am very sorry to leave you again. It seems only an hour or two since I said "Hot do you do" to you just after I arrived in Washington. I think you have been 80 admirably served by our press men behind us that it the unnecessary for you to see me, and I should 11:00 to thank you for the fine help you have been to us. I would like to thank our press experts -- and I think you per- haps will join DD in this -- for the way they have placed themselves to unreservedly at our disposal. The success of our conversations has depended very largely upon that admirable body of experts who, with great patience and groot !nowledge and unlimited good will for each other -- both sides -- have worked away to advise possible ways of coming to agreements when the time arrives. You will remember I told you that I was not calling to come to agreements -- to draft papers and sign them so that the last word had been said. I have kept my promise, my friends, we have not done that -- we have never tried to do it. This has been preliminary conversation -- just like when you cro going out on some big expedition you send scouts ahoad to see that is the best trail for you to take and to see how far the ground will enable you to carry out your purposes. Well, that is what tre have been doing the last two or three days and I think -- though I have had many experiences that between the cup and the lip there are many slips -- I think that I can say to you, without any reservation at all, either in my heart or on my lips, that these two or three days of friendly, pleasant conversations have been fruitful in a way that I hardly imagined would be possible when I came. But still -- and I repeat it -- no agreements, no settlements. I leave your President as free as he vas when I found him and he lets ne go home to see my own colloagursin the British Empire as free as I was the day I left them -- that is the day before I sailed for New York. But, nevertheless, it has been real good business we have done -- real good business. I am very glad that I have had the pleasure also of meeting Dr. Bennett down here. It was absolutely impossible for De to get to Canada at this time. You saw this morning that yesterday vas our budget day, and the Prime Minister's supreme duty is to be at home whilst the budget is being discussed and settled in the House of Commons, BO I an hurrying back. I must hurry back in order to be there with as little delay as possible. 33 I couldn't go to Canada and I hope the Canadian journalists who are present will convey to their readers my profound regret that. fate has been against DO on this occasion but that I still remember my pledge to go to Canada on a holiday. In the meantime, I am very glad indeed that I an having the opportunity of talking with Mr. Bennott. - 2 - How, I would like to put it to you this way: I came here 0.8 -- apparently as a Minister of Great Britain and as the destined perhaps for my sins, because it is going to be no easy job -- Chairman of the International Economic Conference. The burdens and the vorries of both offices were lying in a most terrible way on my back when I saw you last. I an going away as a friend, for I an taking away with no a memory of a most genial mn, who is your President, and a really friendly crowd representing I hope -- I flatter nyself by hoping -- representing the spirit of the American people. I have learned more clearly than I knew before of the difficulties of the American Government -- the American nation -- and I hope that in return for that you folks and your Government appre- ciates perhaps a little bit more vividly the great troubles and the great difficulties that I have to face as Prino Ministor and my collongues have to face as responsible cabinot ministers. To are going away leaving behind us and taking away with us & closer understanding than before. le understood each other at a little distance off. We now understand each other, as it wore, elbow to elbow. You know the human difference in that and, believe me my friends, the very highest diplomacy and the most accurate and search- ing diplomncy always take into account the value of personal and human understandings between both sidos. I think the have got that as the result of the conversations. It therefore has come to this: That we have got above and beyond more market haggling end foggling. The are not going to co- operate in finding solutions of the great troubles of the world if we maintain ourselves in the position of mere bargainers. "I will give you six ponce in silver if I an perfectly certain that you are going to give de six coppers." Bahl That is not the way of going to work together. That is not a way tre are going to live together. That is not the way we are going to aspire and achieve together. Te have got above that. Te have got to an understanding now. There is to be a real humn understanding and the bargains tre want and the exchanges we want are the bargains and exchanges which will make us both both separately and cooporatively -- more efficient in removing the burdens that are oppressing the world at the present moment. Te are also -- and this is the last I want to say -- we are also going away not only convinced of the fact that we hope to come to an agreement -- we are going away with a greater thought than that - we are going away with a determination 170 are going to come to an agree- ment because it is our moral duty to come to an agreement; that if we don't come to agreements, --- I an only telling you what I have been trying to do. But can you inagine what is going to happen if America and Great Britain cannot devise a means of marching side by sido? No alliances. Don't you have any fear of that. No entanglements! We are not going to be brought into the melstron of Europe. You are go- ing to remain where you are, but no man lives to himself alone. The man who is strongest and most independent is the one who has stretched out his hand to somebody else and grusped it. That is the idea that is in my mind and I think -- I think tre have got. I think we have got it. And you have been avfully good in helping us to get it, and with all the gratitudes that I take away with be -- I believe in about an hour and a half. I an sorry but it is true but amongst all the things I an going to take away with ne -- not in my luggage but in my heart -- one of the strongest of them will be my gratitude to the American Press, whom you represent here today. - 3 - Well, I hope ve will meet again. I cannot bear to think that this contact is not going to be a continuing one. I hope that your President will be spared may years of life to give us opportunities for these meetings and I can assure -- I can assure his through you that every opportunity that comos to me to go out in your woods, to go dorm your river, I will fly to take then. So, my friends, goodbye for the time being. P5F R. The Donald TELEGRAM The White House NA 1061 42 Mashington WA New York 628 PM April 26th-1933. The President: The White House. I cannot leave these shores without sending you a message of heartfelt thanks for the cordial and generous hospitality which you Mr. President and Mrs. Roosevelt have extended to Ishbel and myself and for the friendly welcome which we have everywhere received. J. Ramsay MacDonald. 710 PM PSP: R. THE Iorald 30 Pdovia Rea Radio apl 27th1933 RT Non I Ramsay Macdound - My wife and I wich much you both V.S. Berngaria - newyukRedio were still with us - Happy vayage and beat of back always - Franklin M Prosever [F.D.R] to [s. Ramsay Mac Donald], I [may 22,1933] Great Britain's copy published in Documents on British Foreign Policy, 1919-1939, Second Series, Vol. V, 1933 pages 810-811. PSF: R. The Jorwal [ may 22, 1933] DEPARTMENT OF STATE WASHINGTON I have read with great care your gracious letter and also the personal message handed to me by the Ambassador. You may be assured that I fully sympathize with your expression of views as to the desirability of avoiding difficulties concerning the debts at the opening of the Economic Conference. I note with appre- ciation what you say of your understanding of the views held by our Congress and by the American people. As I told you when you were here, I am most anxious that the Conference begin in an atmosphere of mutual good-will. To that end I am discussing the subject informally and privately with leaders of the Congress. No doubt we shall find some way of meeting the situation in ample time before the opening of the Conference. I am finding a good deal of sentiment to the effect that if your Government is unable to pay the entire - 2 - entire amount, it might find it possible to pay a part, perhaps in silver, as has been authorized by Congress. This feeling is based on the thought that it would make it clear in both countries that there had not been a default. It avoids a debate on terminology. This is a mere suggestion, however, and is not intended to be a definitive request. Another question, however, concerns me much more. I am disturbed lest the deliberations of the Conference be unduly affected by the desire of the debtor governments to bring about a new settlement of the debt question, even though this question does not form a part of the Agenda. While we all recognize certain economic relation- ships between the debts and a few of the subjects at issue, the major questions to be discussed at the Economic Con- ference, in my opinion, can be brought to a satisfactory and mutually advantageous determination at the Conference, without reference to the debts at all, and without their settlement being made in any way contingent upon a debt settlement. Hence, I am deeply pleased to note that you do - 3 - do not place a new debt settlement as a necessary prere- quisite to a successful conclusion of the Conference. I hold to my policy of free debt discussion when- ever the debtor governments desire them. It is obvious of course that such discussions must be held here in Washington with whatever representaives the British Government designates for that purpose. As to procedure, I note that your letter suggests an exchange of notes, but your personal message sent sub- sequent to the letter, suggests that in your opinion it would be best not to wait for a formal request from you. I am inclined to the point of view that we can consider that the communications and conferences which I have had amount to a representation of your views. I will have a clearer picture of the Congressional situation by the end of this week and will cable you then. I am delighted that the disarmament conference is moving forward on the lines on which you and I are in such full accord. If things again get in a jam, be sure to let me know if you advise any action by me. Tell - 4 - Tell the Lady Ishbel that Howe ate that halibut for breakfast. My warm regards to you both. PSF R ITTe Jonald PRIME EXPIRATE 10, Downing Street, Thiteball. Personnel h mossicial 8 may 1933. my Dear President, The weather on my why home was as fair and kind as my stay at the white house, and 9 rached Sarthampton much Denefitted s my in days at dea. Whatever may be the kanth 7 unr conversations as regards national understanding they have given the memories 7 great (mindship and an interesting companionship which 2 shall always be swift to try and renew. During the neal Week of two, as we anticipated him great advantage to both our commines which our meeting could bring, they are given a chance to mature, will have to hudergo cirticisms and attacks both in housting lon 1 London, disigned to render them 7 no avail. According to on press, you seem to be going to have a specially trouble homs time. you know how well 9 minstand your difficulties and how much 9 sympathise with you in meeting them. 9 have tried to keep you and your tack in mind in swaything I have said ince my klurn, and 9 hope that I have not smbarrassed you by anything 9 have done. To an mines Committee y In (abinet 1 to the (abinet itsalf in man general and less specific terms, 9 have knowled what things we reviewed. 9 can assure you that my colleagues are as annions as sver to find ways 9 resoneiling your difficulthes with am own 20 that both your Government & ours may deal with one problems & the International Sconomic Conference work determined to find 20mhins 2 secure agreements Our good-will, however, cannot blind no to the realities 9 the Speedingly treacherous country we have to cross before we reach Ensier times. 9 shall refer to two points specifically: 1. The Dariff truce: you know how much 9 favour the idea and how much , wish to cooperate in making is possible. you will remember when our Superts biral Grought up the subject , had to warn you 7 the position in which , found myself owing to hegotialions which we had begun, and to objectives E.g. land ressement and agricultural protection, which had been smbodied in legislation giving instructions from him House Houmons to him Cabrier to proced immediately to apply the law. What had actually been begun and amounced we could not suspend on the chance that, in or uven months from now, the International Conference would be a complete success. su that we an now doing will be reported at the Conference When the Jubjects knowled 2. PRIME MINISTER 10, Downing Street, bitsball. arise. On an inamination 9 our actions, we have come to the conclusion that is an work in hand were completed, we should still be in a better hosition than other States whose agreement is Essential to accept proposals which would make a real success q m Conference. moreover, is must be knumbered that AR were forced to begin this Johny when one European competitors were hard as work setting np new barriers to damage one trade, and when svery attempt we had made to fin him date for the meeting q two International Conference had fried. for instance, him Argentine Agreement (Regarding which in norman Dairs culled upon me on triday to say he had been instructs to protest & to indicate the hossibility 9 some hostile action in Congress) was virtually concluded before 9 left for houshington. 9 told you 7 the unfortunate effect on our minds 7 in behaviour 9 some European Governments when we ourselves tried to get a Jariff buce at Geneva a few years ago, and nothing coned persuade no to so through the same superiences. Before s got home, In hoution which , had Emplained to you was worsened owning to a heavy propagonada by Lome newspapers, and the House Hommons had become auspicions that the proposal was another attempt to take advantage y one sisting weak homes 2 that is would mean a sacrifice 9 one interests alone 1 all an computitors. you will reading understand how difficuls is is, When lack 9 confidence is about; to meet the plausible argument that, if there is to be a truce, it should not be Lonly a stablisation qtm status the which snposes us all the time to samaging attacks, but should be when a Handard of molection and modition as low as our own. I made some suggestions as to how tm truce resonition should be worded, but , do not know what was the result of your conversations with two bench on the subject and Whether they were helpful or otherwise. no doubt Sw Leith Russ will be able to tall us. 2: War Debb: I am 20mg to rec in the leress that new troubles appear to have gathered round ani question, and the quiet and stendy working out 1 the negotiations which we had Wanned has been interfered with by newspaper head. lines. & the quicker ways cannot befollowed failure threatens the other good work we did, the on will ready w mean a take 3. PRIME MINISTER 10, Downing Street, Whitehall. friendly cooperation between our two countries and two International Economic [onference itsalf. All these misfortunes I shall strive to the and to prevent. is we are the warted - will! the world will reques it as is kaps in consiquences. Since my return, I find that the position I suplained to you regarding a June payment still holds good and that there is increasing responsioness lest from good. will we should ask in country to do what is believes it cannot & onght not to do. you seem to be beset by messure to Snact all huymonts, I am baset by dependations demanding that 9 thould make none. At the same time, the Envernment is still ansions to find 20ml means 9 final settlement though sconomic conditions continue to narrow the margin within which we can turn. This final settlement is to be difficult snough in all conscience, but if during Debs negolishions and the sittings 7 the Sconomic Conference something happens which is to create confusion in Europe and an upset in commercial as will as Government debti all were m world, 9 cannot insurance in what state we are all to be left. To reach a final debt settlement within three or four weeks is impossible for it antails not only an agreement between no two, one between m separately and all our debton and creditors. The negoliations between us will have, pom stage to stage, to be snamined in rention to this wider complexity because, is not results may wenk down in their application to misting facts. 9 can du no way one 1 this disasks other than one we considered vis. a suspension of his June hayment on the ground that is would seriously interrupt the negotiations for a final settlement and isopardise the conference, and on the definete and amounted industanding that you were in no way committed to anything beyond the specific act 7 temporary enspension The latest news from Washing ton is rather oninous as to this rossiblity and parkly, is depresses me. 21 rus camel be arranged, then z fear much that nothing can be done, is it am be arranged an agreement though is be difficult is within his bounds 7 hossility. Supposing that the shock 9 disagreement on hw 15th June could be avvided in the way 9 have indicated the question 9 procedure is important 2t would mean an Smehange 1 notes and I am anxions on To S. 4. PRIME MINISTER 10, Downing Street, Whitehnll. that they shoned be helpful to both 9 no. We cannot supect you to take the initiative by informing us that in view 9 the gral work in which he are both sugaged you do not sapect us to make a haryment on sm 19th June 4 we addressed you first any nok would have to be on m lines that owing to the negotiations for a reftlement which are begun and the importance 1 the work 1 the Firkermational forgerence we ask that we may how up our payment on tm time bing without prijudice to withes 9 us and you might respond Emphasism your views on two importance 1 the negotiations and the Conference and agring not to regard a failure in June as a default but making it plain that such a gesture on your hart must not be taken to commit you to this, that and the other thing. 4 your leading representations at him Economic Conference could come to London a day or two before him opening these arrangements could be made surily - provided 7 conse that we know you can accept them. L1 would be most desirable that tm terms 1 our letters be selled beforehand Inturn to those Michand days we spent together ricussing how we could get are on Groubles, is there were no one but ourselves changed with overoming them. There is am open green hank in front 1 my window (I am writing at cheques) & thrushes singing in the garden and I wish that you and mm Roosevelt - and may , add the gay and in faithful How trailing a doubtfully pragrant halibut in his wake :- were here now haying me your refurn visit you will all come one day, I hope howaver, to Lossemouth before he set to regions more sublime, and not more attracher. h through on tobacco smoke - Even is yours comes from minable Chesterfulds or Lucky strikes - durvey a ramshackle world which we strove together to help. with my knowst regards A best wishes to both 1 you, I am yours very shicerely PSF I have read with great care your gracious letter and also the personal message handed to me by the Ambassador. You may be assured that I fully sympathize with your expression of views as to the desirability of avoiding difficulties as unpleasent concerning the debts at the opening of the Economic Conference. I note with appreciation what you say of your our understanding of the views held by ymux Congress and by the American people. most As I told you when you were hre, I am anxious that the Conference begin in an atmosphere of mutual good-will. that + am willing to attempt to bring about the deferment of the June 15th payment by your Government If practicable means can be found. To that end I am discussing the subject informally and privately with leaders of the Congress. No doubt we shall find some way of meeting the situation in ample both countrin that there had not to a default. reads time before the opening of the Conference I am finding a it clobate Terminalagy. good deal of sentiment to the effect that if your Government is unable to pay the entire amount, it might find it possible to pay & part, perhaps in silver, as has been authorized by This is basrd an The thought That it Would make italem on Congress This is 8. mere suggestion, however, and is not in- tended to be adefinitive request. Another question, however, concerns me much more. I am disturbed lest the deliberations of the Conference be un- duly affected by the desire of the debtor governments to bring about a new settlement of the debt question, even though this question does not form a part of the Agenda. While we all recognize certain economic relationships between the debts and -2- a few of the subjects at issue, the major questions to be dis- cussed at the Economic Conference, in my opinion, can be brought to a satisfactory and mutually advantageous determination at the Conference, without reference to the debts at all, and without their settlement being made in any way contingent upon a debt settlement. Hence, I am deeply pleased to note that you do not place a new debt settlement as a necessary prerequisite to a successful conclusion of the Conference. I hold to my policy of free debt discussion whenever the debtor governments desire them. During the period of the stis is abvious Minure that Conference, however, I toshage such discussions must Be held here in Washington with whatever representatives the British Government designates for that purpose. As to procedure, I note that your letter suggests an ex- change of notes, but your personal message sent subsequent to the letter, suggests that in your opinion it would be best not to wait for 8. formal request from you, but to announce that because of the danger of distrubing the atmosphere in which the Economic Conference will meet, we are not pressing for the The immediate payment on June 15th. I am inclined to blade point of view, and will, if 1t is decided to express agreement to e. that hr c/m deforment, consider that the communications and conferences which virws. I have had amount to & representation of your case, and make such announcement as I deem necessary on my own initiative. I will has a claimer picture of the sitnation by the and of This wish and will cable you them I am deligated that the PRIME confirmed is kiving forward on the lines an which yung and I are in 2nch full accord If things again get in a 1 am , to anre to tat me know ifquire Advise Any action by ms. Till the Larly Island that Huar maren anyards Agan bath ats that truckfast. My 20 Plane PSF Rittle Dorald ON HIS MAJESTY'S SERVICE. By bag Personal 2 unofficial The President me while House Washington PRIME MINISTER. wing PSF R. TTOC Jonald PRIME MINISTRY 2 10, Downing Street, Feb hiteball. September 27th 1933. PURELY PERSONAL AND UNOFFICIAL : My dear President, I was very glad to have your letter delivered to me by Mr. Norman Davis. I watch from day to day, so far as newspapers and reports will allow me, the valiant struggle you are putting up to straighten things out in the United States, and I pray that you will secure a great success. You have opportunities for experiment which we do not have here. Our margins are very narrow; the equipoise of our economic life is very delicate; to pull out a brick, to see what is behind or to get at some rotten bit of structure, is as dangerous in the State as I have just found out it is in my own delightful old house which is beginning to show signs of its two centuries of years. But with care, exercisedin carrying out a very clearly defined policy aimed at increasing both prices and consumption, we are steadily effecting improvements. -2- STATE Every day, however, I come across decisive proofs that, unless we get the world in a healthier condition, we are going to be able to do very little that is to be permanent and is to remove the awful poverty of our day. Every stream of international commerce is as parched as our Scotch rivers have been this summer on account of the drought. No fish have been able to get up and the reservirs of water- supply upon which hundreds of villages depend, are their almost down to mud bottom. To spend a quiet half- hour musing over the unity of things is very profitable; but how few such half-hours have you or I got ? I saw the Dutch Prime Minister this week and had a patient survey with him over the field. You know, we really must try and get some means of imparting some degree of certainty to international exchanges. You can help us enormously and we can help you, if our exchanges were a bit more steady. I do not dream of anything that is permanent. I do not think that you can settle rock foundations or anything of the kind; but if we could just patch something up to keep going from day to day, I Aroof 9ATST09 -3- 39 am sure that both your general aim and mine would be enormously facilitated. Please do not imagine I am butting in on your province. I am just venturing and to impose upon our mutual relationships to mention to you one of my biggest troubles in getting things going on this side of the world. I saw Leith Ross before he left and told him that, apart from his official work of discussing Debts, if you show any disposition to have a general talk with him on how matters stand; he must withhold nothing from you but tell you exactly what is passing through than my mind; and nobody knows what that is better/he does. The Disarmament situation is becoming increas- ingly difficult. On this side here there can be no doubt at all but that the conduct, the pose and the spirit of the German Government have raised fear and unsettlement where, largely owing to us, calmness and confidence had begun to operate. And, in addition to that, the same unfortunate hesitations arise from the more remote country, Japan. I cannot honestly say to you that we can get such a good agreement to-day as -4- we could have got twelve months ago. This letter has been interrupted by a telephone communication from Sir John Simon at Geneva. He reports no great achievement as yet by reason of the private negotiations, but he does say that our efforts are getting the more troublesome powers a little closer together. I am seeing him here in a few days and he says he will give me a more complete report. Now, I must not take up any more of your very crowded moments. I just send you all my best wishes and, with kindest regards to Mrs. Roosevelt and yourself, believe me to be Yours always sincerely, The Hon. Franklin D. Roosevelt. os. I hope trul your White House. Washington. indishusition 7 which 9 daw hns now completely gone. 26.m PSF R. Moetonald, THE WHITE HOUSE WASHINGTON November 10, 1937. STATEMENT BY THE PRESIDENT Because Ramsay MacDonald labored long and successfully for the good of his fellowmen he will be mourned by those throughout the world who call themselves liberals. I am glad to have known him as a friend and I deeply regret his death. TANDARD FORM No. 14A PSF R. TTTere Donald APPROVED BY THE PRESIDENT FROM MARCH 10, 1926 The White House Mashington TELEGRAM OFFICIAL BUSINESS-GOVERNMENT RATES CABLE U.S. GOVERNMENT PRINTING OFFICE 131254 November 10, 1937. MISS ISHBEL MacDONALD LONDON ENGLAND MRS. ROOSEVELT AND I ARE DEEPLY SORRY END SEND YOU AND THE FAMILY OUR HEARTFELT SYMPATHY ROOSEVELT