841.51/499
The British Embassy to the Department of State
Aide Memoire
In the course of a conversation on the 10th of February Mr. Hughes observed to Sir Auckland Geddes that it seemed not improbable [Page 397] that the United States Government would be prepared to open discussions with His Majesty’s Government in April in regard to the funding of the British debt to the United States of America. In order that His Majesty’s Government may prepare for any such discussion, it is important that they should learn at an early date what character such conversations are likely to take. There appear to be three possibilities.
- 1.
- To invite the British Government alone as being a large fellow creditor to discuss general problems of debt due to the British and United States Governments, or
- 2.
- To invite the British Government alone to discuss simply the British debt to the United States, or
- 3.
- To invite the major debtors of the United States, e.g., Britain, France, Belgium and Italy together.
His Majesty’s Government would strongly prefer either the first or the third alternative as compared with the second. But in any case they are anxious to learn as soon as possible whether the United States Government propose to deal with each of its debtors singly, according to their apparent capacity or willingness to pay and without reference either to debts owed to, e.g., Britain and France by other allied debtors of the United States or to Germany’s reparation liability.