Foreign Relations of the United States: Diplomatic Papers, 1942, General; the British Commonwealth; the Far East, Volume I

811.24/1504

Memorandum of Conversation, by the Assistant Secretary of State (Acheson)

[Washington,] March 19, 1942.

Pursuant to agreement reached at a meeting in Secretary Morgenthau’s²⁸ office of the Departments and Agencies concerned that the State Department should handle negotiations regarding lend-lease and reciprocal aid to and from the British and the Dominions arising out of the presence of our troops in their areas and the Acting Secretary’s direction to me to proceed with the matter, I called upon Lord Halifax.²⁹ After sketching the problem, I told him that the immediate purpose of my call was to get his views upon methods of procedure in raising the merits of the various matters with the British Government and the Dominions in accordance with British Constitutional practice and the niceties of the situation. I pointed out the possibilities of confusion from multiple discussions and our desire to proceed in a manner mutually agreeable to the British Government and to the Governments of the Dominions.

It was Lord Halifax’s opinion that the matter should be taken up both with the British Government and with the Governments of the Dominions. These Governments would then confer together in an effort to determine a procedure which would keep the discussions coordinated and maintain existing arrangements until other decisions had been reached. He said that he was not himself familiar with the details of the existing arrangements as they affected the lend-lease relations between the British Government and the Dominions, nor with the details of the financial operations through the British dollar pool.

He would like to consult informally with Sir Frederick Phillips,³⁰ Sir Louis Beale,³¹ and Mr. Opie.³² He suggested that I prepare a memorandum, listing the matters to be discussed and raising the questions of procedure for presentation to him and to the Ministers of the Dominions concerned. He would like an opportunity to go over this with the members of his staff mentioned before it was formally presented in order to confirm the advice on procedure which he had given me. I said that I would wish to confer with the Acting Secretary upon this, but that at the moment I saw no objection, provided that the memorandum could be taken up promptly thereafter with the Dominions.

Dean Acheson

28. Henry Morgenthau, Jr., Secretary of the Treasury.
29. British Ambassador.
30. British Treasury Representative in the United States.
31. British purchasing representative.
32. Redvers Opie, Counselor of the British Embassy.