Foreign Relations of the United States: Diplomatic Papers, 1943, General, Volume I

800.515/863a: Telegram

The Secretary of State to the Ambassador in the United Kingdom (Winant)

Washington, October 11, 1943—noon.

6312. From the Secretary of the Treasury. On October 5 we appeared in secret session before the Senate Committees on Foreign Relations, and Banking and Currency, and the Special Committee on Postwar Economic Policy and Planning, and the House Committees on Banking and Currency, Foreign Affairs, and Coinage, Weights and Measures to bring them up-to-date as to what the Treasury is doing on post-war monetary problems. We had agreed with the British Treasury that we would keep the statement submitted to these Committees strictly confidential and we had promised that in case of any disclosure, we would sit on the lid as long as we could reasonably do so. This is in reply to Embassy’s cables of October 7, 1943, Nos. 6773 and 6789.⁶⁶

The story carried in the Financial News of the previous day received considerable attention in the American press on October 8. As a result, we were subjected to considerable questioning and pressure for confirmation of the report. We much prefer that public discussion take place on the basis of an authoritative draft rather than on the basis of a grossly distorted version.

For these reasons, we discussed with Opie and Keynes the desirability of releasing the statement given to the Congressional Committees in executive session outlining the principles of a bank proposal which the Government experts think should be the basis for further unofficial discussions. Keynes objected to our making the statement public, but Opie agreed that it would be desirable and said he would speak to the Ambassador. All in all, we concluded it would be best to inform the press of the Treasury’s proposal together with an explanation of why it was now being disclosed, although were it not for the story which appeared in the Financial News we would not have issued a statement at this time.

For your information, there is no reason to believe that any of the members of the Committees or any other member of Congress was responsible for the distorted story which appeared in the Financial News on October 7.

Department is telegraphing the text of the Guiding Principles for a Proposed United Nations Bank for Reconstruction and Development⁶⁷ which was submitted to the Congressional Committees on October 5 and released to the press on October 8 with the explanation that the proposal had not been discussed with experts of the British or of any foreign government. [Morgenthau.]

Hull

66. Neither printed. Telegram No. 6789 reported on the publication in the London Financial News of October 7, 1943, of an article headed “Ten billion dollar world bank to provide capital for reconstruction—text of secret plan submitted to U.S. Senate Committee.” (800.515/843)

67. Telegram No. 6313, October 11, not printed; for text of the Guiding Principles released October 8, see New York Times, October 9, 1943, p. 1, col. 1.

    On November 24, 1943, the Treasury Department made public a preliminary outline for a United Nations Bank for Reconstruction and Development; see Federal Reserve Bulletin, January 1944, p. 37. See also Proceedings and Documents of the United Nations Monetary and Financial Conference, vol. ii, pp. 1616 ff.