550.S1/542: Telegram
The Chargé in Great Britain (Atherton) to the Secretary of State
[Received March 17—5:53 p.m.]
46. In reply to an inquiry from me today French Ambassador23 stated that Monsieur Bonnet, French Finance Minister, had arrived here last night to discuss not only questions arising from the agenda of the World Economic Conference but also certain other economic matters in which France and England had common interest, more especially the Egyptian debt. I understand in connection with this latter that Monsieur Bonnet frankly pointed out how much England’s authority had suffered in international economic questions since she had gone off gold. However, French Ambassador informed me that during the conversations which took place at the British Treasury [Page 472] today, both he and Bonnet received very distinct impressions that an early return to the gold standard was contemplated, very possibly even before the summer was over. The French Ambassador then expressed the opinion that an early return to the gold standard by England was the beginning of general stabilization but must be followed by a devaluation of currencies in certain European countries, Austria, Serbia and Bulgaria expressly.
I gather also that Bonnet had discussed with Chamberlain24 reports that the United States Government would welcome an early meeting of the World Economic Conference with possibly Washington as venue.
French Ambassador was most skeptical as to any results arising from MacDonald’s visit to Rome.25 Foreign Office informs me that Prime Minister will probably return to London on Wednesday and Simon proceeding direct to Geneva for disarmament discussions.26