/\4//vs •JUL 24 1921 SOME ASPECTS OF THE WORK OF THE DEPART- MENT OF STATE By the honorable CHARLES E. HUGHES [Reprinted prom the American Journal of International Law Vol. XVI, Number 3, July, 1922] 'J-iFo^[s^\h .,y A¥ His SOME ASPECTS OF THE WORK OF THE DEPARTMENT OF STATE' By the Honorable Charles E. Hughes Secretary of State of the United States It is my purpose to present to you some aspects of the work of the De- partment of State. In view of the nature and scope of the discussions at this meeting I do not need to emphasize the extraordinary importance of our international relations at this time. But I feel that such discussions, despite their wide range, would be inadequate unless they also served to bring about a better understanding on the part of the business men of the country of the essential instrumentality through which intercourse with foreign governments is conducted. It is impossible to have a correct appreciation of the most important activities of the Department of State without taking account of its con- stitutional background. The President, with the advice and consent of the Senate, has the power to make treaties and to appoint ambassadors and other public ministers and consuls. To the President is confided the authority to receive ambassadors and other public ministers. By virtue of this constitutional relation to the conduct of foreign affairs, the correspond- ence and negotiations with foreign powers are exclusively in the hands of the President. At the outset, Mr. Jefferson, the first Secretary of State, advised President Washington: "The transaction of business with foreign nations is Executive altogether. It belongs then to the Head of that Depart- ment, except as to such portions of it as are especially submitted to the Senate." The power of the President to receive ambassadors and ministers vests in him exclusively the authority to determine what governments are entitled to recognition, and the accredited medium for friendly intercourse. That high prerogative was not for his aggrandizement but because the vital interests of the nation were believed to demand this concentration of power. It was not deemed advisable to entrust it to the Congress and for its exercise the President is accountable "only to his country and his own conscience." The Congress, of course, controls the purse, but in the case of the constitu- tional authority of the Executive, as in that of the Supreme Court exercising the judicial power, the duty of the Congress to furnish the money needed for the essential equipment to exercise the authority has always been recognized. The Department of State is the instrumentality through which ^ Address before the Chamber of Commerce of the United States at Convention held in Washington, D. C, on Thursday evening, May 18, 1922, at 8.30 o'clock. 365 675851. 356 THE AMERICAN JOURNAL OF INTERNATIONAL LAW the President gives his instructions to public ministers and consuls and conducts his negotiations with representatives of foreign governments, and thus stands in a peculiar relation to the Executive in the performance of his constitutional function. In considering the relation of our diplomacy to the business interests of the country, it should always be remembered that the Department which deals with our foreign relations is the Department of Peace. The resources of negotiation, of reason and persuasion are within its control. The very foundation of all business security, in an important sense, is within the keeping of the Foreign Offices of Governments, as to them — as the agencies of peoples — must be entrusted the practical processes by which nations may adjust their mutual interests, settle their disputes and prevent the frightful losses and dislocations of war. I have always advocated the judicial settle- ment of all international disputes which can be regarded as having a justici- able character, and have favored the development of institutions for that purpose. But with due recognition of the importance of this means of settlement, it must be borne in mind that the most serious international controversies, and this is especially true at this time, are not of a legalistic nature and must be settled, if they are settled at all, by negotiations and agreements. They lie outside the application of defined juristic principles and the more unstable we find world conditions to be, the greater the neces- sity of the efficient operations of diplomacy and of the adequate organization and support of the Peace Department of our Government. The alternative of friendly settlement is resort to coercion, and, if you wish peace, you must pursue the methods of friendly intercourse between Governments and recognize whatever is essentially involved in these methods. There is no other way. A fundamental question at this time is the preservation of the essential bases of international intercourse through the demand for the recognition of valid titles acquired in accordance with existing law and for the main- tenance of the sanctity of contracts and of adequate means of enforcing them. Intercourse, from the standpoint of business, consists in the making of) contracts and the acquisition of property rights. Nations may adopt what policies they please for the future conduct of their local affairs, and if these policies are not enlightened, the result will inevitably be that production will languish and trade will shrivel up, and they will look in vain for security and confidence: still they will be within their rights in determining their future policy in local matters. But if they seek international intercourse, • they must perform international obligations. When they have invited intercourse with other nations, have established their laws under which contracts have been made and property rights validly acquired, they put themselves outside the pale of international intercourse if they enter upon a policy of confiscation. International relations proceed upon the postu- lates of international morality, and the most important principle to be v,. SOME ASPECTS OF THE WORK OF THE DEPAETMEXT OF STATE 357 maintained at this time with respect to international relations is that no State is entitled to a place within the family of nations if it destroys the foundation of honorable intercourse by resort to confiscation and repudiation, * and fails to maintain an adequate system of government through which valid rights and valid engagements are recognized and enforced. This is in the obvious interest of business, and this is merely a way of saying that this ' course is vital to the prosperity of all peoples for the activities of business are those of production and exchange upon which the welfare of peoples inevi- tably depend. If profits are anticipated through a departure from this clear path of honorable dealing, they will be found to be illusory. At this time we also have occasion to deal with the enlarging of the opportunities for industry and commerce by the recognition and extension of the poHcy of the "Open-Door". At the recent Conference held in Wash- ington the participating Powers succeeded in taking what has been the subject of general diplomatic phrases in relation to China and putting it with more definite explication in the precise form of a treaty engagement. Thus they have agreed that they will not seek nor support their respective nationals in seeking (a) ''any arrangement which might purport to establish in favor of their interests any general superiority of rights with respect to commercial or economic development in any designated region of China", or (b) "any such monopoly or preference as would deprive the nationals of any other Power of the right of undertaking any legitimate trade or industry in China, or of participating with the Chinese Government, or with any local authority, in any category of public enterprise, or which by reason of its scope, duration or geographical extent is calculated to frustrate the practical application of the principle of equal opportunity." This Government has been insisting, and I am glad to say with a gratifying measure of success, upon the application of this principle to the territories which recently have become the subject of the novel arrangement of man- dates, and we have received important assurances with respect to equality of commercial opportunity in these regions. In giving appropriate diplomatic support to American enterprise, our Government does not, of course, attempt to secure contracts for its nationals or to institute particular undertakings. I assume that no one could wish the Government to be so involved. Its object is to keep open the course of , fair and equal opportunity. Hence, it is a vital principle that it must act with absolute impartiality with respect to American business interests which may happen to be in competition. It does not attempt to favor one at the expense of another, but to maintain such policies with respect to international intercourse as will give all a fair chance. And, in this connection, permit me to say a word to the effect that the relations between the Department of State and business men involve a cer- tain measure of reciprocity. It is not only important that there should be • an alert and efficient organization of this branch of the government, but it is / 358 THE AMERICAN JOURNAL OF INTERNATIONAL LAW also important that it should always be remembered that good faith and cordial feeling are of the utmost importance in international affairs and that nothing in diplomatic intercourse can atone for the conduct of disreputable ♦business agents and speculators who do not carry into their undertakings abroad those methods of honorable dealing which must always be assumed in giving diplomatic support. This Government is not engaged in endeavor- ing to promote the opportunities of chicanery, and business interests in their dealings abroad are under a patriotic obligation to maintain the prestige of their country. Aside from these observations as to fundamental principle, I could easily enumerate a host of special instances in which the activities of the Depart- ment are now engaged of vast importance to the business community. But such a narration would not aid in the safeguarding of the particular business interests concerned and at best could serve to emphasize by particularization the general observations I am making as to the importance of the adequate organization of the Department. The organization of the conduct of foreign affairs implies the mechanism , (1) for obtaining complete and accurate information, and (2) for constant and direct contact with all those concerned; and the operation of this mechanism must be dominated (3) by an American policy conceived and defined with an accurate appreciation of all American interests involved. This manifestly requires unification of effort. The function of directing intercourse with foreign governments in the nature of things cannot be divided. There must be unity in the formulation and direction of policy *and unity in its execution. Manifestly, you cannot deal with different governments through different instrumentalities; and you cannot deal with the same government through independent agencies, or you will work to cross purposes. However important and helpful it may be, and I agree that it is most important and helpful to have specialized efforts to promote trade, to secure technical assistance, to gather and disseminate in the most expert manner all needed information, to organize the facilities of commerce and provide for the manifold exigencies of our merchants — and I am as anxious as anyone to see this provision generously made — still it remains so clearly true as in my judgment to be beyond controversy that when you come to the point of dealing with governments you must have a single governmental agency of international intercourse or you will have confusion and make definite and consistent policy and effective governmental action impossible. It is especially important to recognize this fact at this time, when our international problems tend to become mainly economic problems. « There is the more imperative necessity of adequately organizing international intercourse. The effective intertwining of political and economic problems imposes a heavier strain upon the machinery and requires suitable readjust- ment, but the exigency requiring a unified system of contact with foreign powers remains exactly the same. In truth, many of our economic problems SOME ASPECTS OF THE WORK OF THE DEPARTMENT OF STATE 359 have now the feature that governments, directly or indirectly, are themselves more largely involved in economic projects, and economic problems must of necessity to a larger extent than before be taken up with governments through diplomatic channels. Unity of control of contact with foreign i governments is absolutely essential. There are two main divisions of the organization of intercourse with ^ other Powers: (1) the Field and (2) the Department. These are interdepend- ent agencies. The Field consists of Ambassadors, Ministers, Consuls and special commissioners, with their necessary staffs, constituting the instru- mentahties of information and contact. There is still a lingering notion that in view of the fact that the representatives of our Government act under instructions from the Department of State and because of the im- proved facilities of communication, these representatives continue what is mainly a social tradition and are of slight practical value. Some may think that communications cabled directly to foreign powers would be sufficient. It is a very crude and limited view which would deny the importance of even social contacts. But the inadequacy of mere written communications, however important these may be, and of the necessity of direct personal approach should be apparent to everyone whose horizon is broad enough to enable him to consider foreign affairs to any advantage. The facilities of communication increase the opportunities for business and the multiplicity of business interests and intimacies of business relations serve not to lessen but greatly to increase the necessity for the factor of personality in contacts with foreign governments. The tendency is strikingly shown in the endeavor at the present time, in view of the complexities of international relations, to increase the opportu- nity for personal contacts through the medium of international conferences. That is the whole significance of conferences, — that diplomatic notes will not suffice. Everyone familiar with foreign affairs knows that while the statement of foreign policies in formal writings is absolutely necessary, still in order to accomplish results in negotiations, there should be so far as prac- ticable the personal contacts of diplomatic representatives. Every im- portant business concern that can send an agent personally to conduct delicate negotiations does so. Every responsible foreign minister longs to get away from interminable note writing through which controversies tend to approach an impasse. An hour of direct intercourse between responsible Ministers is often worth months of written communications. The interna- tional conference itself is largely successful in inverse proportion to its numbers and to the extent that it represents the common purpose of a few who are interested in a particular problem and sincerely wish to find an appropriate method of solution. In the larger gatherings real accomplish- ment is likely to be hindered by the breaking up into groups with rival purposes which prevent results. The point is that the present effort of \ diplomacy is not to rely on mechanical facilities of communication but to J L. 360 THE AMERICAN JOURNAL OF INTERNATIONAL LAW get to the maximum the advantage of personality in negotiations. The method of conference is a mere extension to a group of that which in a limited way is found every day in the contacts of pubhc ministers representing their different countries. In every part of the earth the Diplomatic and Consular Officers of the United States are watching every turn of events in their relation to the general policies of this Government. They report every source of interna- tional irritation; they note the signals of economic and political unrest, of international rivalries, prejudices, subversive tendencies and discriminatory- policies. They aid the Government not merely in settling disputes but in removing or limiting the causes of possible controversy. It seems to me that no one surveying the matter intelligently could wish to do aught but increase the efficiency of this representation. We have • recently endeavored to stop competition in naval armament by agreeing upon ratios of capital ships in the case of the principal naval powers. We have been solicitous in this country, while scrapping a large part of our capital ships, to maintain a reasonable relation of our naval power to that of other countries, but diplomatic strength is even more important than naval strength, and it is a poor patriot who would scrap both his ships and his diplomats at the same time. If you are to get along without the one you must have the other. Every American should feel ashamed that any country in the world should have a better diplomatic organization than the United States. This is not a matter simply of national pride; it is a matter of national security. I shall therefore make no apologies for asking not only your support but your active and urgent demand in the interest of American business for the I maintenance and development of the most efficient organization of our ' /diplomatic agencies. The truth is that our Foreign Service is undermanned \ and underpaid. Of course, in the Department of State, as in other De- partments, we are most deeply interested in economy and reduction of un- necessary expense. At this time with the vast burdens resting upon our people as a result of the war, all avoidable outlays should be rigorouslj' cut down, and the Department of State has done its full share. Let me call attention to the fact that the expenses of the entire service of the Depart- ment, including the Diplomatic and Consular Services and that of the Department in Washington, amount to less than $11,000,000. Indeed, under the present schedule of passport fees, which I shall be glad to see revised and reduced, for the last fiscal year the receipts of the Department exceeded the total expenditures of all services by over $1,270,000. In other words, it was a money-making institution. I am not, therefore, asking out- lays which threaten the tax-payer with any serious increase of his heavy bur- den. A relatively small amount would be sufficient to give the equipment • that is needed to provide the essential basis of a career and thus to keep trained men in the service of the Government. SOME ASPECTS OF THE WORK OF THE DEPARTMENT OF STATE 361 The necessity for a trained staff is obvious. The notion that a wide-awake, * w average American can do anything is flattering to the American pride, but costs the Government dearly. In every hne of effort — professional, com- mercial or industrial — it is thoroughly understood that you cannot obtain the necessary technical equipment through mere general experience or by reading instructions. There are thousands of items of necessary informa- tion which are a part of the common knowledge of men whose lives are entirely devoted to a class of work which cannot be obtained by anyone who is suddenly introduced from the outside. I have no regard for artificial technicalities and I fully understand the dangers of departmental routine, but it is a very shortsighted and foolish view which would confuse routine and expert knowledge. The patent fact is that you cannot have an efficient / Foreign Service without having trained men and you cannot secure trained men without an adequate system for their selection and maintenance; and * you cannot keep men who have been properly selected and trained and are • invaluable to their country unless you offer reasonable opportunities for promotion. ( I grant the importance of appointing men from outside the service to important diplomatic posts. It is most advisable that the country should have the opportunity to draw upon its reserves of wide experience, sagacity, and ability; that it should secure the benefit of the mature judgment of those who represent the fruition of American opportunity, culture and dis- cipline, and thus invigorate the processes of diplomacy.) But it must be remembered that these men, despite their training and ability, would be helpless if they did not have the backing of trained staffs. If you are to secure the full benefit of the most distinguished service at the top you must still have your organized service in all the other grades. And, as I have^ said, while you cannot sacrifice the great advantage of appointments from the outside to the chief positions, it is absolutely necessary that there should be a suflScient frequency of promotions from the Service itself to the chief positions, that is, of heads of missions, so as to make possible a career warranting its pursuit by a fair proportion of the very best of our young men. The Consular Service through appropriate legislation was long ago (in 1906) placed upon a merit basis, and also by recent enactment, in 1915, supplementing an Executive Order of 1909, the secretarial portion of the Diplomatic Service has been placed upon a non-political basis by provision for appointment after competitive examination and by promotion for rea- sons of merit and efficiency up to Class I. The examinations are conducted so as to afford satisfactory tests, both of attainment and of adaptability to the requirements of the service. The examinations are conducted in the Department by men of great experience who know precisely the needs which must be met and the sort of equipment desired. But while in recent years there has been great improvement by reason of this method of selection, we have serious difficulties to meet. These are: /" ^ 362 THE AMERICAN JOURNAL OF INTERNATIONAL LAW ^ The Diplomatic Service is greatly underpaid. A man of moderate means, whatever his ability, cannot accept the more important posts of Ambassador or Minister. These high offices are reserved to men of wealth, when in the interest of the country they should be within the reach of men of ability, whatever their private fortune. Certainly they should be within the reach of men of talent who have ignored the opportunities to amass wealth by reason of their long employment in the service of their country. The salaries are so low in the classified Diplomatic Service that the choice of candidates is largely restricted to young men of wealthy families who are able and willing to a considerable extent to pay their own way. It is a most serious thing to be compelled to say that a young man without means, who desires to marry and bring up a family after the American tradi- tion, cannot be encouraged to enter upon one of the most important careers that the country has to offer. I say bluntly that no American can face the facts without a sense of humiliation, and he is compelled to qualify his boasting of our intelligence and civilization so long as this condition con- tinues. In the present situation there is a double harm, first in keeping out men who would invigorate the Service, and on the other hand, in creating the impression that it is a rich man's club. Let me, however, warn you against an erroneous impression. It does not follow because a man has the advan- tage of the background of success and wealth in his family, generally won in a hard, competitive struggle, that he is not entirely worthy of appointment and promotion. On the contrary, we have some of the finest young men of the country in our service, and we ought to be grateful that under the existing conditions they are able and content to turn aside from financial opportunities to follow an intellectual bent and seek a career of honorable service to the nation. I do not depreciate those who are in the Service, but I do decry the method which limits the selection and discriminates against the poor man of equal ability. We talk a great deal of love of our country, and I should like to see a better appreciation of what its interests demand. We have the same difficulty in the Consular Service because of the present salary scale. It is difficult to retain its best men because of tempting offers constantly made to them by the business world. It must be borne in mind that we have always had in this country a very large proportion of our young men of the highest ability who are strongly influenced by other ideals than those of pecuniary gain. It is because of this fact that in the past generations, while America was advancing by leaps and bounds, and vast fortunes were being accumulated, the church and the teaching profession were enriched by our best blood. But there is a limit to the sacrifice that can be asked. There is a difference between plain living and actual poverty and distress. Further, the prospect that invites the young man of intellectual ambition is one of career, of recognition, of distinction; hence, it is of vital importance in organizing our Diplomatic SOME ASPECTS OF THE WORK OF THE DEPARTMENT OF STATE 363 and Consular Services that we should provide sufficient for a decent living, and hold out the hope that conspicuous abihty and fidelity will be appro- priately recognized. There is also the need of a greater flexibihty. There has long been too great a distinction between the political interests of the Diplomatic Service and the commercial interests of the Consular Service. Both are engaged in political work and both are engaged in commercial work. You cannot at this time take economics out of diplomacy. If you would protect our in- terests on the one side you must support them on the other, and I believe that the two branches of the Service, now called the Diplomatic and Consular, should be drawn together and treated as an interchangeable unit. This would permit men to be assigned from one Service to the other and thus give a greater range of opportunity for putting men in the places where they belong as their aptitudes and special talents are revealed. In all these matters we must be realists and not permit our mental proc- esses to be stopped by archaic differentiations. Nearly all nations have found it necessary to make a considerable reorganization in order better to equip their Foreign Service, and this country should not lag behind. What I have said as to the service abroad applies also to the Department. The Department is undermanned. The work places too great pressure on many of the officials and employees who are required to sacrifice construc- tive hours to routine. There is need of more and better paid officials to handle important matters. The work of the Department in Washington is interlaced with that of the Field and the aim is constantly to interchange the benefits of the experiences of each. Thus men should be brought in from the Field to the Department so that the Department may be enriched by contact with those who have had the benefit of experience abroad, and at the same time men should be sent from the Department to the Field so that there may be a better understanding and more intimate knowledge of the Department's policies. Happily this reciprocal influence is being maintained and the spirit of both Field and Department leaves nothing to be desired. Then there should be a coordination of effort among the different de- partments of government. Sometimes it might be supposed that the different departments of government were so many different governments, such has been at times the nature of the intercourse between them. While we are intent upon perfecting any particular agency of government, we can never afford to lose sight of the fact that it is a single government whose varied instrumentalities we are considering and which must act as a single government with a unified purpose and method. I am glad to say that we are achieving at this time a very gratifying measure of cooperation among the Departments ; in particular the relations between the Department of State and the Department of Commerce are most cordial and mutually helpful. We are working with each other and endeavoring each to aid the other in its recognized field of effort. It is my 364 THE AMERICAN JOURNAL OF INTERNATIONAL LAW most earnest desire that all practicable measures shall be taken to promote American commerce and disseminate through all appropriate channels the essential information which the American merchant needs. The Department of State is carrying the flag of the twentieth century. It aims to be responsive in its own essential sphere to what it recognizes as the imperative demands of American business. It aims at the coordination of the work of all departments bearing upon the same great object of Ameri- can prosperity. It intends in its contacts with foreign governments to maintain the American tradition of candor and good faith, and at this diffi- cult time it is earnestly desirous of aiding in the reestablishment of stable conditions and thus of contributing to the welfare of other peoples upon which our own prosperity must ultimately depend. THIS BOOK IS DUE ON THE LAST DATE THIS B""^„%^TVIPED BELOW 14 DAY USE RETURN TO DESK FROM WHICH BORROWED LOAN DEPT. RENEWALS ONLY — TEL. NO. 642-3405 This book is due on the last date stamped below, or . on the date to which renewed. Renewed books are subjea to immediate recall. RECEIVED C:CU'68-^I1AIV. LOAN PEPT. p.?^ ^ APR 14^69 - 10 Ai t LOAN DEPT. LD 21A-38m-5,'68 (J401slO)476B %i^ General Library University of California Berkeley 075851 '■/'A i 7 ^ ^ 1-11 A 4 UNIVERSITY OF CALIFORNIA LIBRARY k