800.51W89 Great Britain/366
The Ambassador in Great Britain (Mellon) to the Secretary of State
Sir: According to the Department’s circular instruction Diplomatic Serial No. 2092 of November 25, 1931,3 I have the honor to report a telephone call which I made to Washington on December 3. This call was in reply to a telephonic instruction from the President to see Mr. Baldwin relative to a tentative suggestion which had been made by the British Government to meet the debt settlement payment to the United States Treasury due December 15 by one-, two-and three-year British Treasury notes. In this telephone conversation I reported, under instructions, to the Secretary of the Treasury that I had seen Mr. Baldwin, who would consult with his colleague, the Chancellor of the Exchequer, who, in turn, would be able later in the day to give me the definite reply of the British Government. I further indicated in this telephone conversation the desirability of my being in a position to reply as to the President’s attitude and future action, should Mr. Baldwin raise the question of whether these Treasury notes, if made commercial notes, would be acceptable to the Administration and Congress.
On the afternoon of December 3, I again called the Secretary of the Treasury to inform him that the British Government had given me their reply as regards the President’s inquiry that they were unwilling to consider any payment in bearer notes.
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