800.51 Johnson Act/74
Memorandum by the Under Secretary of State (Phillips)
I took up with the President today the inquiry presented by the French Ambassador yesterday afternoon and asked him whether in his opinion we had any other alternative than to apply the terms of [Page 535] the Johnson Act. The President considered the matter for some time and finally decided that there was no other alternative and that France should therefore be notified to that effect. As far as the British were concerned, the President seemed to feel that possibly after the adjournment of Congress something might be worked out, but that certainly we could do nothing until after Congress had adjourned. In the circumstances he was quite clear that the Department could notify all inquiring governments that, while this Government could continue to receive payments on account, the Johnson Act required that these governments could not escape being declared in default.