840.50/923
The Secretary of State to the Secretary of the Treasury (Morgenthau)
My Dear Mr. Secretary: There are enclosed copy and translation of an undated memorandum (D. 8443–6) of the Belgian Embassy left at the Department of State December 1, 1942 and copy of a memorandum (D. 8443–6, No. 7661), dated December 15, 1942 with which the Belgian Embassy transmitted the enclosed text of a declaration on [Page 1032] monetary questions made November 18, 19425 by the Belgian representative at a meeting of a subcommittee of experts of governments temporarily residing at London. Through these texts the Belgian Government has stated its position on several points of monetary policy which would arise as soon as an expeditionary force of the United Nations should invade and occupy Belgium.
Among other things the memorandum delivered December 1, 1942, having reference to the monetary policies announced by the expeditionary force in North Africa, states that the determination of the rate of the Belgian franc in relation to the dollar is a question of the sovereignty of the Belgian Government, and that the latter could not recognize that any other government has a right to substitute itself for the Belgian Government in this connection. The memorandum adds, however, that there will be no decision taken in this matter without prior consultation with the competent American authorities. The memorandum asked the concurrence of the American Government in the measures envisaged therein.
The Belgian Ambassador has been told that full consideration would be given to his memorandum and that a reply would be made. However, a substantive reply to the various points in the Belgian declaration, which appears to contemplate the use by expeditionary forces of Belgian currency newly printed by the Belgian Government at London to the exclusion of direct use of dollars or pounds for expenditures within Belgian territory, would require consultation with the British authorities in this field. The Department of State, therefore, doubts whether it could go further at the present time than assure the Belgian Government that appropriate authorities of the Government of the United States are considering the matter and count upon full opportunity to discuss the problems with the Belgian Government in due course and before any decision is taken thereon.
The Belgian memorandum states that the subcommittee of experts at London has been kept informed of the measures which the Belgian Government is preparing. For convenient reference there is attached a copy of the minutes of the subcommittee meeting of August 24, 1942,6 where the Belgian plans are in part set forth.
I should appreciate receiving your advice as to appropriate action by the Department of State in this matter.
I am addressing a similar letter to the Secretary of War.
Sincerely yours,