462.00R296/4043b: Telegram
The Secretary of State to the Chargé in Great Britain ( Atherton )
179. For Secretary Mellon. I have been asked by the President to telegraph you regarding the very favorable reception which his debt statement has so far been given. The attitude of France seems to be the only remaining danger spot. Every effort is being made by us from here to smooth down any resentment which may have been caused by the suddenness of the announcement. We have received intimation that your visit to London and your conferences with members of the British Government, following so soon as it did after the Chequers meeting, has excited suspicion in French parliamentary circles that France has been left outside the “pilot works” in some preliminary preparation for the announcement of the President’s statement. The French, I feel, should be reassured that there has been no preliminary discussion of this plan with any other country. Naturally the President has been following the situation in Germany with keen solicitude. He acted when the financial crisis in Germany of the last two days of last week indicated that disaster was imminent unless he acted at once. France was the first of the other nations notified when a decision to act had been reached by the President. That was on last Friday.
On Sunday the French Minister of Finance expressed to Ambassador Edge the hope that you might be going to Paris soon and that he felt this would be most helpful. Your going to Paris as soon as possible, he seemed to feel, would aid in smoothing over the situation.
The President, Mr. Mills, and myself all think that it is extremely important that you should go to Paris. We feel that such a visit would just at this time do more than anything else to insure French acceptance, although we of course dislike to break into your vacation in this way. All the arguments for mutuality of sacrifice by France with America in this situation are familiar to you. Whereas the most that France is called upon to sacrifice would be less than $100,000,000, you can say that we are making a sacrifice of $250,000,000. You are likewise familiar with the character of the crisis in Central Europe and the importance of ending it now by a general demonstration of solidarity and confidence.
It is also important that the French should know from high authority how the critical developments in German withdrawals on Friday and Saturday in the end forced the President’s action. We are informed that there would probably have been a financial disaster in Germany today had he not acted when he did. France should be reassured by these facts and they should prevent her from entertaining [Page 47] any idea that she has been left out of any carefully calculated plan intentionally.
At this moment when a decision as to France’s future attitude toward this proposition hangs in the balance the President is exceedingly anxious that you should go to Paris to help out in dealing with this matter. It is, however, as I have said, with the greatest reluctance that the President has reached the conclusion that in order to do this he must ask you to give up your personal plans and convenience.