-3-                             
 
 
 
might persuade men to accept: their treatment
of Wilson's programme.
 
 
                             II                             
 
 
Much as I believe in peace as our best policy, I cannot avoid the fears
which Wilson emphasized more than once in conversations with me, August
15, 1915 and later: the breakdovm of democracy in all Europe will be a
disaster to the people. But what can you do? At the present moment more
than a hundred American corporations have subsidiaries here or
cooperative understandings. The Du Ponts have three allies in Germany
that are aiding in the armament business. Their chief ally is the I. G.
Farben            Company, a part of the Government which gives 200,000
marks a year to one propaganda organization operating on American
opinion. Standard
0il Company (New York sub-company) sent $2,000,000 here in December
1933 and has made $500,000 a year helping Germans make Ersatz gas for
war purposes; but Standard 0il cannot take any of its earnings out of
the country except in goods. They do little of this, report their
earnings at home, but do not explain the facts. The International
Harvester Company president told me their business here rose 33% a
year(arms manufacture, I believe), but they could take nothing out.
Even our airplanes people have secret arrangement with Krupps. General
Motor Company and Ford do enormous businesses here through their
subsidiaries and take no profits out. I mention these facts because
they complicate things and add to war dangers. If you wish proof of
this story, talk with our Commercial Attache here, Douglas Miller, in
the United States till early December.
 
 
Whether our people can prevent another world war is certainly a grave
question. Yet no real democratic President can fail to realize the
consequences of a world war to us. There is, however, increasing
evidence here, in Rome, Paris and London that we may not have a war
soon.