File No. 855.51/17a
The Secretary of State to the Ambassador in Great Britain ( Page)
6187. For Crosby from Leffingwell:1
No. 49. We agreed to increase to $9,000,000 per month the advances to Belgian Government for relief, and France agreed to increase to $6,000,000 per month her dollar contributions for Belgian Belief requirements here, with the understanding that entire $15,000,000 would be required and used to cover purchases here, and that England and France would furnish the funds required for European expenditures, including freight, insurance, and purchases in Holland, amounting in all to approximately £2,260,000 per month. Hoover understands that the above plan was ratified at the Paris conference, and that the European expenditures would be provided by England and France and by the use of a portion of the 500,000,000 [Page 471] franc loan made to Belgium by England and France. I understand, however, that this arrangement has not become effective so far as England’s participation is concerned, because of delay on part of British Treasury. Consequently, the London office for Belgian Relief is pressing New York office for permission to use dollar credits to repay freight and insurance advanced by Belgian Government in pounds and guilders. I feel that freight payable in pounds or guilders, although contracted for here, is not an American expenditure and that dollar advances should not be so employed. Hoover agrees and informs us that the total dollar advances are required for American purchases, and we see no reason why this Government should supply funds for European expenditures which were to be met by England and France. We wish to assist in Belgian relief, but must know what England is going to do. Suggest you get situation clarified and advise us accordingly.
- Russell C. Lenlngwell, Assistant Secretary of the Treasury.↩