550.S1 Monetary Commission/23: Telegram
The Acting Secretary of State to the Chairman of the American Delegation (Hull)
151. Your 141, July 16, 4 p.m. No comments on draft text of resolution.
Regarding four lettered points, we incline to the British point of view in favor of temporary agreements, since economic conditions are in state of flux everywhere and there is no proper basis on which capacity to pay can be satisfactorily determined for a long period. Temporary agreements would enable debtor countries to avoid impairment of credit standing and other evil consequences of default. Terms of final agreements will depend largely upon extent to which the international movement of goods may be restored. Delay in arriving at final agreements will cause no great inconvenience if temporary agreements are based upon existing conditions.
Question of tariff adjustments should be omitted from this resolution. Terms of temporary agreements should be left to consideration of parties concerned and be determined according to the particular circumstances in each case. Same objection applies to point raised by Greek delegation. See no objection to point (d). It should, of course, be stated clearly that the resolution and amendments have no application to intergovernmental debts.