A. It is not “negotiated.” It is a dictated peace; it represents a complete Hitler victory but that is the only kind of negotiated peace he would consider until he is himself defeated. Q. _But is it possible that these are authentic, genuine terms of the Axis? It seems to me that the publication of such arrogant demands upon America was an undiplomatic step, contrary to the interests of the Axis, since it would be bound to arouse our indignation._ A. It was a “semi-official” publication of the Japanese Foreign Office at the very time when the then Foreign Minister Matsuoka advised Anthony Eden that Japan was ready to mediate a negotiated peace if she were requested to do so. Its authentic character can hardly be questioned. If it is arrogant it is because the Axis is arrogant, and considers that Britain is already beaten and that the United States was beaten before she began to fight. As the _Japan Times Advertiser_ put it: “These may be called victors’ terms but the Axis powers have achieved a dominant position permitting liberty of dictation.” These terms could not be worse if we had entered the war and lost it. They would mean that from now on until perhaps centuries later when the Nazis shall have become soft and self-indulgent and until some new, rougher race arose to oust them, the Germans would rule the earth. For of course if Britain or America were to be willing to accept such terms it would prove they really were beaten. During the period immediately after the signing of the negotiated peace which would be used by the Germans to consolidate and strengthen their military position, we should probably be allowed to retain our nominal sovereignty, although we should not be able to do anything in the realm of foreign politics or economics that was not permitted by Germany. During this period our Lindberghs would declaim that they had been right after all since we had not been invaded and we still elected our own president and still sang “God Bless America,” and still called ourselves the land of the free and home of the brave; and the Lindberghs would insist that the sacrifices we had made were far better than to have fought a war. But soon we should find that Hitler’s idea of “equality” in South America meant complete Nazi monopoly. Soon we should find we had lost all our world trade save that permitted us by the Axis with the Axis on Axis terms. Q. _Would the Nazi use of slave labor be an advantage? Can’t free American labor always produce better and cheaper than slave labor?_