462.00 R 29/2601

Mr. J. P. Morgan to the Secretary of State

Dear Mr. Hughes: I have naturally been thinking a good deal over the things we talked about the other day, and have had a new idea, which I expounded to Mr. Thomas,29 who came to see me this morning. He asked what course I would recommend, which would be of advantage at present in France, and I said that it seemed to me that if Mr. Poincaré would say to his own people something on the following lines, it might have a beneficial effect. He might say to them—

“It is quite true that Germany is in default and that we have the right and the power to occupy the Ruhr Basin, or inflict any other of the penalties embodied in the Treaty. We are not yet sure, however, that this is the best and wisest way of accomplishing the purpose, which is that, not only of France, but of all the Allies; namely, getting the most out of Germany that she can possibly pay. This question we are going to have studied, and, when we arrive at a conclusion in that connection, we will take such action, with your permission, as may be finally decided upon as being the wisest and best course to attain this great and necessary object.”

It seems to me that this would give him a very good platform to start out upon, to get his international commission from all the [Page 197] countries to examine the subject and report to the various governments.

I feel that it is important to keep you advised of anything I do in the matter, hence this letter.

Yours faithfully,

J. P. Morgan
  1. Albert Thomas, French citizen, Director of the International Labor Office of the League of Nations.