Arthur James Balfour to Colonel House

No. 19.

Personal and most secret.

Following from Mr. Balfour for Col. House:

Our Ambassador at Madrid has received communication from Spanish Government to the effect that a Spanish diplomatic representative has officially reported German Government would be glad to make a communication to us relative to peace. Spanish Government, while disclaiming any desire to intervene or mediate, enquired whether we would be willing to listen to German suggestion or decline all discussion. We do not think it would be either possible or wise to refuse to listen: though we could not discuss without previous consultation with our co-belligerents. We propose to answer in this sense.

Owing to Russian position decision has not yet been taken whether we should inform our principal Allies of the German suggestion before above reply has been sent or wait till Germany puts forward definite proposals, but I thought I would like the President and you to know exactly how matters stand. In view of importance of preserving complete secrecy I have not spoken of it to any representative of the Allies except the French Ambassador here.

Suggestion as to answer I think the proper course is the one you propose to adopt, namely, to tell the Spanish envoy that you could not discuss the matter without consulting your co-belligerents and, as so many insiscere offers of peace have already been put out semi-officially, you could not even consult your co-belligerents until a more definite proposal is made. This is Sir William's personal comment on the cable just recd
E. M. H.

Although time has not yet allowed careful consideration of the German proposal cited in the attached message, it is not improbable that, in view of the continued strong offensive on the Western front, of the extensive preparations under way in the United States, and of conditions in Germany, it signifies a genuine attempt to make peace. On the other hand the Germans may have knowledge of the important plans which the Allies are making for next spring and of the grave decisions of policy and strategy which these entail, and it might be that they would attempt to upset them by insincere proposals intended to take advantage of the delicate Russian situation, to embroil the Allies with the Vatican and to interfere with their projects in connection with Poland.