THE CREATION OF THE ANGLO-AMERICAN ALLIANCE 1937-41 A Study in Competitive Co-operation THE CREATION OF THE ANGLO-AMERICAN ALLIANCE 1937-41 A Study in Competitive Co-operation DAVID REYNOLDS The University of North Carolina Press Chapel Hill Published in the United States, 1982, by The University of North Carolina Press By arrangement with Europa Publications Ltd. © David Reynolds, 1981 Library of Congress Cataloging in Publication Data Reynolds, David, 1952- The creation of the Anglo-American alliance, 1937-41. Bibliography: p. 373 Includes index. 1. World War, 1939-1945—Diplomatic history. 2. Great Britain—Foreign relations—1936-1945. 3. Great Britain—Foreign relations—United States. 4. United States—Foreign relations—Great Britain. I. Title. D750.R48 1982 940.53’22’41 81-16503 ISBN 0-8078-1507-1 AACR2 Printed and bound in England by Staples Printers Rochester Limited at The Stanhope Press To My Three Rs—L, M, and MP One of the principles of my politics will always be to promote the good under standing between the English speaking communities. At the same time alliances nowadays are useless ... As long as the interests of two nations coincide and as far as they coincide - they are and will be allies. But when they diverge they will cease to be allies. . . . Alliances uncemented by mutual interest are not worth the papers they are written on. Winston S. Churchill, 1898 [The United States]... will probably become what we are now, the head servant in the great household of the World, the employer of all employed; because her service will be the most and ablest. We have no more title against her than Venice, or Genoa, or Holland, has had against us. One great duty is entailed upon us, which we, unfortunately, neglect, - the duty ofp reparing, by a resolute and sturdy effort, to reduce our public burdens, in preparation for a day when we shall probably have less capacity than we have now to bear them. William Ewart Gladstone, 1878 Time's wrong-way telescope will show a minute man ten years hence and by distance simplified. Keith Douglas, 1941 CONTENTS Acknowledgements xi Abbreviations xiii Introduction 1 PART I Dual Policies: The Limits of Anglo-American Co-operation during a Period of Diplomatic Uncertainty, May 1937-May 1940 1. Doobts, Hopes and Fears: The State of Anglo-American Relations in the Late 1930s 7 A. The British predicament 7 B. British policy towards the U.S.A.—doubt, hope and fear 10 C. Chamberlain, Eden and the U.S.A., 1937-38 16 - O. American images of Britain 23 —E. Towards a coherent foreign policy—the United States, 1937-38 25 F. The Czech crisis, March-September 1938 33 2. The Diplomacy of Deterrence, October 1938-August 1939 37 A. Britain’s deterrent diplomacy 37 —B. American rearmament for Western defence, 1938-39 40 C. British policy on U.S. involvement in Europe 44 D. Roosevelt's failure to revise the Neutrality Act, summer 1939 54 E. The problem of Japan, 1938-39 58 3. Between Peace and War, September 1939-May 1940 63 A. A phoney war? 63 B. Washington—the politics and diplomacy of double-edged neutrality 64 C. London: continued doubts, hopes and fears about the U.S.A. 73 - D. Churchill, Roosevelt and Chamberlain 83 E. Towards greater reliance upon America 88 PART II Commitments and Dependence: The Development of Anglo-American Relations during a Period of Global Crisis, May 1040-March 1941 4. Britain Alone, May-July 1940 95 vii CONTENTS A. Britain looks to America as the French collapse 96 B. Churchill and the hope of imminent U.S. entry into the war 102 C. Backing Britain—the debate in Washington 108 D. American destroyers and the British fleet 113 C 5. Americaa Destroyers, the British Fleet and the Defence of the English-Speaking World, July-October 1940 121 A. The Destroyers Deal, August 1940 121 B. The Pacific crisis and the drift towards world war 132 C. The changing balance 143 6. Lend-Lease, October 1940-March 1941 143 A. Waiting for Roosevelt, October-December 1940 143 B. ‘An Act to Promote the Defense of the United States* 133 C. Scraping the bottom of the barrel, March 1941 161 7. Getting ‘Mixed Up Together*: Anglo-American Diplomacy and Strategy in Early 1941 169 A. The West Indian bases 169 B. The changing texture of Anglo-American relations 173 C. The ABC staff talks, January-March 1941 182 D. Anglo-American diplomacy and the European neutrals 186 in PART The Common-Law Alliance: Its Character and Development from Lend-Lease to Pearl Harbor, March-December 1941 8. War la Masquerade: Roosevelt’s Limited, Undeclared War against Hitler 193 A. The spring crisis 193 B. Russia—respite or turning point? 204 C. Problems of strategy and supply 208 D. Towards limited, undeclared war 213 E. ‘In the same boat* 220 9. The Rood to Pearl Harbor and Singapore 222 A. Containing Japan: strategy, January-June 1941 222 B. Containing Japan: diplomacy, spring 1941 229 C. Tightening the screw on Japan: the Indochina crisis, July-August 1941 233 D. Time runs out: autumn 1941 240 E. Conclusion 247 viii CONTENTS 10. A New Deal for the World? Planning the Post-War Order, 1940-41 251 —A. First discussions of war aims, 1940-41 252 •—B: The ‘special relationship* and the problem of security 261 C. Towards a new economic order 269 D. Leadership and the new international order 280 EPILOGUE AND CONCLUSION Competitive Co-operation 283 A. Epilogue 283 — B. Conclusion 286 Notes 295 Bibliography 373 Index 391