851.5151/1926: Telegram

The Ambassador in France (Bullitt) to the Secretary of State

1271. Reference latter part my 1267, August 12, midnight.38 Saint39 in Bonnet’s office has just telephoned me that the French [Page 289] Government has again changed its mind as regards communicating to the United States Government and to the British Government a formal note relative to pressure on the franc and the necessity of a common statement to deny the rumors of modification of the Tripartite Agreement. He stated that Bonnet now requests urgently that the note which he gave me yesterday evening be regarded as an official note and be transmitted to the United States Government. Saint added that an identical note was handed to the British Chargé d’Affaires this morning.

A translation of the note is as follows:

“The pressure exerted on the French currency, while not having its origin in circumstances related solely to the market for the franc, is entailing serious consequences for the stabilization fund and for the French Treasury. The French Government considers that it is acting in the spirit of the Tripartite Agreement in informing the Government of the United States that if the pressure on its money should persist, it would not be certain of being able to continue very long the sacrifices implied by the defense within the present system, of the existing monetary level.

It believes it necessary therefore that the Governments signatories of the Tripartite Agreement seek in common, in the spirit of confident collaboration which has always inspired them the appropriate measures to ward off the attacks which at present are affecting the principal continental currencies. It stresses in particular the urgency of a common declaration tending to deny the rumors which continue to circulate regarding the possible modification of the Tripartite Agreement and of the existing monetary rates.”

Cochran has telephoned foregoing to Secretary Morgenthau.

Please advise Treasury.

  1. Vol. i, p. 63.
  2. Charles Saint, assistant in the office of the Minister for Foreign Affairs.