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BRITI8H MBASSYi
WASHINGTON, B.C.,
September 26th, 1939.
No. XXOl*
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My Lord,
With reference to Mr. Adam's telegram
SO* 62 of the 85th September to Tour Lordship, X
have the honour to transmit herewith copies of the
text (as released by too State Department) of the
address delivered by the Under secretary of State,
Mr* Sumner Welles, to the Pan-American Conference
at Panama on the 80th September*
2. Mr* Welles outlined his conception of the
problems which now confronted the American Republics
and, recalling "the havoc which was occasioned to
our inter-American Seonomle System after the war
broke out In 1914"f stated, with the authority of
the United States Government, that (a) United States -
Latin American shipping services would be maintained
and, indeed, strengthened and inoreasod where this
were found desirable and feasible; (b) financial
assistance and cooperation might be developed to tide
over short emergency periods and to develop in individual
countries now fields of production to replace thos
temporarily depressed; (o) when desired the United
States Government would assist la making credit avail*
able to other American republics either through the pri-
vate banking system or through Government agencies when
Jl *ne lattcr nad funds available for such purposes; (d)
£./Sn financing currant matters, it waa expeoted that only
EM :NT
short-/
The Bight Honourable
The Viscount Halifax, K.o.,
etc
etc
etc.
short-term credits would toe requested* but that
In the purchase of veil and mill equipment, heavy
goods etc., longer term credits appropriate to the
circumstances would be required and that if war
conditions shifted "certain international trade
markets"i this would also need to be taken into
account]    (e) the United States Government recognised
that excessive or unwarranted fluctuating in inter*
American exchanges would seriously prejudice beneficial
trade between the American republics*
8* Mr. Sumner Welles expressed the belief that
"to the extent that we sustain bases of commercial
policy that are universal in character, and have trade
open to all countries on substantially the same
terms*, and to the extent that our commerce is not
dletated by special agreements of an exclusive
character" the American Republics could ensure that
their political Independence could not "be subjugated
to alien political systems operating through
commercial channels".
4. These were the immediate problems: but
beyond them there were others, deeper and more
fundamental, proceeding from the faet that "various
powerful countries in other parts of the world have
new completely converted their own systems of trade
and production to another begi? - making it an in-
strument of political and idealogical ambition".
There followed the passage quoted by Mr* Adam in his
telegram No* 62 of the 85th September to Your
Lordship, suggesting a deolaratioa that "belligerent
activities   in close "proximity   to the shores of
the/
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"the new world" should not bo permitted.
5* The Under secretary of State thou spoke
of the present war la general terns*   He said It was
certain that the vast mass of the common people
everywhere "have wanted above all else to prevent
the war which has now broken out":   that "In modern
civilisation every country has a natural*right that
war shall not be loossd upon humanity"'but that this
right, embodied in the  Pact of Paris was being
flagrantly violated*   "There is", said Mr. Welles,
"no moral justification for any nation to loose
war upon humanity when the resort to peaceful pro-
cedure for the solution of controversies or inequities
is available".
6* Mr. Welles concluded with the belief that
mankind's overwhelming will "for peace based on a
renunciation of force* on justice and on equality"
might find its expression in the western hemisphere*
For that reason, they must resolutely defend their
continent from all menace of aggression, direct or
indirect.
7. I am sending a oopy of this despatch to
His Majesty's Minister at Panama.
I have the honour to be.
with the highest respect.
My Lord.
Your Lordship*s most obedient,
humble servant.
(SOD) wmum