I wonder if you would do me the honour to take luncheon at the Coburg Hotel with me, to meet him either on July 1, or 3, or 5—if you happen to be free? I shall have only you and Mr. House.
Very sincerely yours,
WALTER H. PAGE.
The chief reason why Colonel House wished to meet the British Foreign Secretary was to bring him a message from President Wilson on the subject of the Panama tolls. The three men—Sir Edward, Colonel House, and Mr. Page—met at the suggested luncheon on July 3rd. Colonel House informed the Foreign Secretary that President Wilson was now convinced that the Panama Act violated the Hay-Pauncefote Treaty and that he intended to use all his influence to secure its repeal. The matter, the American urged, was a difficult one, since it would be necessary to persuade Congress to pass a law acknowledging its mistake. The best way in which Great Britain could aid in the process was by taking no public action. If the British should keep protesting or discussing the subject acrimoniously in the press and Parliament, such a course would merely reënforce the elements that would certainly oppose the President. Any protests would give them the opportunity to set up the cry of "British dictation," and a change in the Washington policy would subject it to the criticism of having yielded to British pressure. The inevitable effect would be to defeat the whole proceeding. Colonel House therefore suggested that President Wilson be left to handle the matter in his own way and in his own time, and he assured the British statesman that the result would be satisfactory to both countries. Sir Edward Grey at once saw that Colonel House's statement of the matter was simply common sense, and expressed his willingness to leave the Panama matter in the President's hands.
Thus, from July 3, 1913, there was a complete understanding between the British Government and the Washington Administration on the question of the tolls. But neither the British nor the American public knew that President Wilson had pledged himself to a policy of repeal. All during the summer and fall of 1913 this matter was as generally discussed in England as was Mexico. Everywhere the Ambassador went—country houses, London dinner tables, the colleges and the clubs—he was constantly confronted with what was universally regarded as America's great breach of faith. How deeply he felt in the matter his letters show.
To Edward M. House
August 25, 1913.
DEAR HOUSE:
. . . The English Government and the English people without regard to party—I hear it and feel it everywhere—are of one mind about this: they think we have acted dishonourably. They really think so—it isn't any mere political or diplomatic pretense. We made a bargain, they say, and we have repudiated it. If it were a mere bluff or game or party contention—that would be one thing. We could "bull" it through or live it down. But they look upon it as we look upon the repudiation of a debt by a state. Whatever the arguments by which the state may excuse itself, we never feel the same toward it—never quite so safe about it. They say, "You are a wonderful nation and a wonderful people. We like you. But your Government is not a government of honour. Your honourable men do not seem to get control." You can't measure the damage that this does us. Whatever the United States may propose till this is fixed and forgotten will be regarded with a certain hesitancy. They will not fully trust the honour of our Government. They say, too, "See, you've preached arbitration and you propose peace agreements, and yet you will not arbitrate this: you know you are wrong, and this attitude proves it." Whatever Mr. Hay might or could have done, he made a bargain. The Senate ratified it. We accepted it. Whether it were a good bargain or a bad one, we ought to keep it. The English feeling was shown just the other week when Senator Root received an honourary degree at Oxford. The thing that gave him fame here was his speech on this treaty[49]. There is no end of ways in which they show their feeling and conviction.
Now, if in the next regular session the President takes a firm stand against the ship subsidy that this discrimination gives, couldn't Congress be carried to repeal this discrimination? For this economic objection also exists.
No Ambassador can do any very large constructive piece of work so long as this suspicion of the honour of our Government exists. Sir Edward Grey will take it up in October or November. If I could say then that the President will exert all his influence for this repeal—that would go far. If, when he takes it up, I can say nothing, it will be practically useless for me to take up any other large plan. This is the most important thing for us on the diplomatic horizon.
To the President
Dornoch, Scotland,
September 10, 1913.