Colonel House to Woodrow Wilson

I am enclosing a cable which I have just received from Balfour. I am sending it in duplicate so you will have a copy of the State Department. No one knows of these negotiations excepting Lansing and Polk, and I would suggest your cautioning Polk about letting them go any further. Breckinridge Long who is here today is taking this letter.
I cannot see that the solution Balfour suggests would be of much service, excepting that it would prevent Japan from falling into the hands of Germany and forming a combination against us.
In the event of trouble between Japan and ourselves, or other parties to the agreement, they would be forced to be neutral, or if there was a war between any of the signatory powers, the others would necessarily be neutral.
That is not quite what we had in mind. I see no reason why our first proposal should not be accepted, and I see no reason why it should offend Japan or any other nation if known. What I suggested was that in view of our diverting government ship-building in our naval yards from the construction of capital battleships to that of vessels suitable for anti-submarine warfare, and the building of a merchant marine in order not to interrupt the supplying of the Allies with necessary materials for the continuation of the war, Great Britain should agree to give us an option on the purchase of such capital battleships as we might wish, to replace those which we discontinued building because of our desire to aid them.
This would not be directed against Japan any more than it would be against France, Italy, Russia or even England herself.
Sir William Wiseman expects to return to England early next week and before going he will spend a day with me here. Will you not let me know your conclusions, so I may discuss the matter with him and let him in turn take it up with his Government?
If the English are afraid of Germany, it seems to me it would be reasonable to include in the agreement a clause by which in the event of war between Germany and England, they might demand the return of these capital battleships.
I take it they desire these negotiations to go on unofficially in order that there may be no embarrassment with Japan. That is, as soon as they become official, their treaty obligations with Japan might compel them to disclose all negotiations of this nature.Magnolia, Massachusetts.July 8, 1917.
P. S. I do not believe Balfour has taken anyone on this side into his confidence regarding these negotiations excepting Sir William Wiseman. Spring-Rice, I am sure has not been told.