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healthy economic relations among nations. The task is neither easy nor simple. Political antagonisms, national ambitions, the vast armament programs, and many other phases of narrow nationalism present powerful obstacles. But all these obstacles, enormous as they are, will be more readily overcome if there is constantly kept alive the concept of a future for mankind happier than that of an inexorable drift toward economic impoverishment and a military explosion, and if tireless efforts are made to bring about the realization of such a future.

It is my considered judgment that nothing that has occurred in recent years or in recent weeks has served to discredit in any way the principles on the basis of which we are seeking to bring about a restoration of sound economic conditions as a necessary foundation of durable peace. Nothing that has occurred has impaired my profound belief that these principles will sooner or later become firmly established as the foundation of international commercial relations. The world's need for the translation of these principles, as well as of all other basic principles of peaceful relations among nations, into practical realities is more urgent and more pressing today than it has ever been.

Nor is the present outlook in this respect devoid of hope. In spite of plausible indications and pseudo-logical inferences to the contrary, the drift toward complete national self-sufficiency is far from making ready headway in the world as a whole. While excessive barriers to trade continue to weigh heavily upon international commerce, the major part of world trade is still carried on by countries which are not attempting to be self-contained regardless of cost.

Only a few countries proclaim the attainment of autarchy as their avowed purpose. But these very countries are, at the same time, making desperate efforts to enlarge the volume of their foreign commerce-not only within the limited areas actually or potentially under their immediate influence, but with other parts of the world as well. The striking paradox of the present situation is that in their attempts to find foreign markets and sources of materials indispensable to their national existence, such countries employ methods of forced and artificial stimulation, which inescapably prevent trade from making its full contribution even to their own well-being and economic stability.

As experience accumulates, it becomes increasingly clear that trade methods of this type steadily exhaust the countries which practice them and arouse ever more intense resistance and retaliation on the part of other countries. Whether employed in conjunction with

openly proclaimed programs of national or group autarchy or in the absence of avowed desire for self-containment, such methods of trade inevitably defeat themselves. They are, in a full sense, the instruments of destructive economic warfare, adopted by nations in the mistaken belief that they are capable of enhancing national security and strength.

Autarchy and other forms of economic armament create but an illusion of strength and security. They uproot far more than they build. They discourage rather than generate enterprise. By placing impassable barriers to the world flow of material and financial resources, by tending to split up the world into abnormally limited areas of trade relations, they undermine confidence and stability. They make all nations progressively weaker.

The very difficulties which constantly multiply in the application of such policies and methods create powerful pressures in the direction of their abandonment. No nation can prosper or maintain other than a visibly falling standard of living for its population when the world is broken up into air-tight economic compartments.

The program which we advocate offers the only practicable alternative to a drift toward the anarchy of economic warfare, with all its disastrous consequences for the peace and progress of man. Its workability has been demonstrated beyond a shadow of doubt. It can be embraced by all nations alike, without exception, and to the benefit of each and all.

Not by compromising with any of our basic principles, not by joining a retreat to self-imposed poverty of economic isolation, not by attempting to employ the destructive practices of forced trade, can we make our contribution toward rendering brighter and more hopeful the outlook for ourselves and for the world.

Our own best interests and the concern which all of us must feel for the future of the human race imperatively require that, far from abandoning our trade-agreements program, we put redoubled vigor into our efforts to enlarge its scope and its effectiveness. We should not relax, we should intensify our endeavors to influence all nations, by example and by, every appropriate means of persuasion open to us, to return to the tested basis of healthy and sound trade, of monetary stability, of financial order and probity-in brief, to that type of international economic relationships which have been incontrovertibly shown by experience to be the only possible foundation of peace, progress, and well-being among mankind.

No nation and no individual can escape a share of responsibility for the fashioning of mankind's choice as to the road which the

world will follow. There is nothing more desperately needed today in all countries than clear thinking and a profound sense of national and individual concern for the course of future developments.

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Press Releases, vol. XIX, p. 338

Statement by President Roosevelt, November 15, 1938

The news of the past few days from Germany has deeply shocked public opinion in the United States. Such news from any part of the world would inevitably produce a similar profound reaction among American people in every part of the Nation.

I myself could scarcely believe that such things could occur in a twentieth-century civilization.

With a view to gaining a first-hand picture of the situation in Germany I asked the Secretary of State to order our Ambassador in Berlin to return at once for report and consultation.

Press Releases, vol. XIX, p. 474

121

"Declaration of Lima" by the Eighth International Conference of American States, December 24, 1938

The Eighth International Conference of American States,
Considering:

That the peoples of America have achieved spiritual unity through the similarity of their republican institutions, their unshakable will for peace, their profound sentiment of humanity and tolerance, and through their absolute adherence to the principles of international law, of the equal sovereignty of states and of individual liberty without religious or racial prejudices;

That on the basis of such principles and will, they seek and defend the peace of the continent and work together in the cause of universal concord;

That respect for the personality, sovereignty, and independence of each American state, constitutes the essence of international order sustained by continental solidarity, which historically has found expression in declarations of various states, or in agreements which were applied, and sustained by new declarations and by treaties in force; that the Inter-American Conference for the Maintenance of Peace,

held at Buenos Aires, approved on December 21, 1936, the declaration of the principles of inter-American solidarity and cooperation, and approved, on December 23, 1936, the protocol of nonintervention; the Governments of the American States

Declare:

First. That they reaffirm their continental solidarity and their purpose to collaborate in the maintenance of the principles upon which the said solidarity is based;

Second. That faithful to the above-mentioned principles and to their absolute sovereignty, they reaffirm their decision to maintain them and to defend against all foreign intervention or activity that may threaten them;

Third. And in case the peace, security or territorial integrity of any American republic is thus threatened by acts of any nature that may impair them, they proclaim their common concern and their determination to make effective their solidarity, coordinating their respective sovereign wills by means of the procedure of consultation, established by conventions in force and by declarations of the interAmerican conferences, using the measures which in each case the circumstances may make advisable. It is understood that the Governments of the American Republics will act independently in their individual capacity, recognizing fully their juridical equality as sovereign states;

Fourth. That in order to facilitate the consultations established in this and other American peace instruments, the Ministers for Foreign Affairs of the American Republics, when deemed desirable and at the initiative of any one of them, will meet in their several capitals by rotation and without protocolary character. Each government may, under special circumstances or for special reasons, designate a representative as a substitute for its Minister for Foreign Affairs; Fifth. This declaration shall be known as the "Declaration of Lima."

122

Press Releases, vol. XIX, p. 494

Declaration of American Principles by the Eighth International Conference of American States, December 24, 1938

Declaration of American Principles:

WHEREAS

The need for keeping alive the fundamental principles of relations among nations was never greater than today; and

Each state is interested in the preservation of world order under law, in peace with justice, and in the social and economic welfare of mankind.

The Governments of the American Republics resolve

To proclaim, support and recommend, once again, the following principles, as essential to the achievement of the aforesaid objectives: 1. The intervention of any state in the internal or external affairs of another is inadmissible;

2. All differences of international character should be settled by peaceful means;

3. The use of force as an instrument of national or international policy is proscribed;

4. Relations between states should be governed by the precepts of international law;

5. Respect for and the faithful observance of treaties constitute the indispensable rule for the development of peaceful relations between states, and treaties can only be revised by agreement of the contracting parties;

6. Peaceful collaboration between representatives of the various states and the development of intellectual interchange among their peoples is conducive to an understanding by each of the problems of the other as well as of problems common to all, and makes more readily possible the peaceful adjustment of international controversies;

7. Economic reconstruction contributes to national and international well-being, as well as to peace among nations; and

8. International cooperation is a necessary condition to the maintenance of the aforementioned principles.

LIMA, December 24, 1938.

[Here follow signatures.]

123

693.001/510

The Ambassador in Japan (Grew) to the Japanese Minister
For Foreign Affairs (Arita) "0

No. 1153

40

TOKYO, December 30, 1938. EXCELLENCY: Acting under the instructions of my Government I have the honor to address to Your Excellency the following note:

40 Delivered by the Ambassador at 11:30 a.m., December 31, 1938.

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