800.515/627
The Acting Secretary of the Treasury (Bell) to the Secretary of State
My Dear Mr. Secretary: In accordance with the request made in your letter of April 10, the British Treasury has been informed of your views on the currency situation in Tripolitania.
At a recent conference in the Treasury, Sir Frederick Phillips of the British Treasury reported to Mr. Bell and Mr. White15 that his Government was agreeable to the suggestion that British Military Authority pound notes should not be used in Tripolitania. The British Government now proposes to use lira notes with special overprinting.
Sir Frederick Phillips also stated the views of his Government on other questions concerning which I had requested information and which will be of interest to you. He said that his Government still felt that the Allied Governments-in-exile would object to the use by friendly invading forces of any currency other than currency they were preparing or local currency.
It was further stated that British military forces intended during the initial stages of military invasion operations to use local currency previously acquired. Such local currency would be supplemented by B.M.A. notes. The British Government, upon reexamination of the matter, had no fears with respect to the reception that would be accorded British troops using the local currency.
Sir Frederick Phillips inquired, on behalf of his Government, whether Mr. Casaday16 should participate in discussions which were to take place between the British Treasury and the Governments-in-exile, following the British Treasury’s request for the views of the exiled governments on currency matters relating to military occupation. He was informed that inasmuch as these matters were currently being discussed and considered here, and inasmuch as we have already requested the Governments-in-exile for their views, we saw no need for Mr. Casaday to participate in the London conversations.
Very truly yours,