861.51/884
The British Ambassador (Geddes) to the Under Secretary of State (Davis)
My Dear Mr. Assistant Secretary: With reference to our recent conversation on the subject of the movements of Russian gold, I am now informed by the Foreign Office that the present position on this question in Great Britain is as follows:
The import of gold from Soviet Russia into the United Kingdom is not prohibited, but licences would not be given for the melting down of such gold or for its re-export, nor would the Bank of England be willing to accept it in the absence of a guarantee of title [Page 724] by the British Government which the British Government would not be willing to give. In practice the result has been to prevent the gold from coming to the United Kingdom and although small quantities have undoubtedly been realised from time to time in various parts of the world, the Treasury believe that hitherto the difficulties in the way of giving a title to the gold have effectually prevented the Soviet Government from disposing of any but insignificant amounts in any direction.
You will see that our practice is very similar to your own.
Believe me [etc.]