740.00/592: Telegram
The Ambassador in the United Kingdom (Kennedy) to the Secretary of State
[Received 2:30 p.m.]
259. I saw Halifax and Cadogan separately this morning. Halifax had had a talk with Von Dirksen41 who is leaving to go back to Germany for a couple of weeks. Three things of rather interesting significance are: (1) Halifax asked Von Dirksen why, if Hitler really were serious about wanting trade pacts and peace, he continued his terrific armament program and Von Dirksen said that they were greatly disturbed in Germany at the almost weekly utterances of the President of the United States and they had become convinced that the United States would come to the aid of England and France not in 2 years, but probably in 2 days and they therefore felt that the only thing to do was to keep making themselves strong. This last conclusion does not seem to have much rhyme nor reason but nevertheless that was the one he said the German Government have arrived at. (2) Halifax told Von Dirksen that he wished he would attempt to have the German Government influence the Italians in playing down the agitation of the Italian press in stirring up difficulties between Italy and France, because, said Halifax, Mussolini may find himself in a position that he would not like at all and will not be able to back up. Von Dirksen agreed with that statement completely. (3) Halifax asked him whether there was any truth in the rumor that Ribbentrop was likely to come to London. Von Dirksen said that Ribbentrop no longer felt animosity toward England and would come here to sign an industrial agreement or any other agreement that would give him a good excuse for coming.
With reference to the Spanish situation they are preparing a cable to send to our Government in Washington through the German delegates. They have made up their minds that there is no real Spanish Government functioning, because over a week ago the Spanish Ambassador asked them to get some respectable terms for surrender. The [Page 22] English said they would help and prepared a note to Franco which they wanted submitted through the Spanish Ambassador to his Government before they sent it. They have not yet had an answer as to whether their proposition was what the Spanish Government wanted, which confirms their idea that there is no such thing as a government any longer, and that Franco can finish it off any time he wants to. They have so advised the French and suggested recognizing Franco. The French want a little more time to get Bérard’s42 report, but at any rate it will be within a few days. They have a promise from Franco that he will not punish any of the opponents except those who have violated the Spanish criminal laws so the British are accepting this for what it is worth and will extend recognition.
The British Cabinet have agreed to give a guarantee up to £5,000,000 for stabilization of Chinese currency. They regard this as being very helpful to the Chinese and their reports convince them that the Japanese are having tremendous difficulties and are very much disturbed over the possibility of Anglo-American cooperation against them.
There are no new developments regarding the German situation and as to the Italian-French situation, Cadogan told me that they had received advices from Lindsay that the State Department had been informed of the French General Staff’s growing uneasiness caused by Italian preparations.43 Cadogan says that they can get no confirmation themselves that anything special is taking place or at least for which their people in Italy and the French staff cannot find reasonably good excuses.
I have a feeling that, in spite of the British complacency at the moment, the topside men in the Government ask themselves every night, if Germany continues to arm and it is becoming more and more difficult to stop arming and make the transition to a peaceful economic basis, what can Hitler possibly do? It would seem easier to continue warlike methods rather than assume the burden of a new economy for Germany. Mussolini also may find himself in a position where he cannot back out and we will have a war in desperation before we know it. England feels that the last 6 months have aided them tremendously in preparation for defense and their attitude at a round table conference would be much stiffer than it was at Munich. In the meantime, tremendous amounts of money must be borrowed and a revival of European rumors of war will not make this any too easy. The long term outlook for England, whichever way you look at it, seems to me exceedingly dark.