841.24/2123
Memorandum of Conversation, by the Assistant Secretary of State (Acheson)
| Participants: | Sir Ronald Campbell, Sir David Waley, Mr. John Magowan. |
| State Department—A–A—Mr. Acheson, Eu—Mr. Achilles, | |
| A–A—Mr. Roosevelt. |
Sir Ronald Campbell together with Sir David Waley and Mr. Magowan called on Mr. Acheson at the latter’s request. Mr. Acheson explained that certain recent developments had led the United States Government to conclude that public announcement of the figures on reciprocal aid, of the provision of raw materials as reciprocal aid, and of the replacement of the Eden–Winant White Paper by a bilateral declaration of policy, should be delayed. Mr. Stettinius had informed him that afternoon that this decision had been reached in the light of the forthcoming Congressional investigation of Lend-Lease.46 It is the desire of the Administration that this investigation be run through as quickly as possible, and that the charges be answered by high ranking officials who can settle the present questions without the complications that might result from the introduction of new factors into the situation.
Sir David Waley inquired how long this investigation may be expected to last. Mr. Acheson replied that it was hoped under the procedure he had already described, that the investigation could be concluded in two or three weeks. Sir David then said he had not in any case expected to be able to present a White Paper on reciprocal aid much earlier than that; if that schedule could be followed it would mean little if any additional delay so far as the British were concerned. Mr. Acheson said that he was very glad to hear that this was so.
Mr. Magowan then inquired whether it was our intention to cease negotiations on the various problems mentioned by Mr. Acheson until the Congressional investigation should have ended. Mr. Acheson replied that this was not our intention, that we expected to go on with negotiations and hoped to reach a final agreement so that when the time is ripe for the announcement, everything may be ready.
Sir David Waley in response to a question from Mr. Acheson stated that negotiations were going on between OEW and the British Raw Materials Mission, and that a meeting had been held yesterday. He said that little progress was being made and that both sides were [Page 93] ferociously adamant in their position. Mr. Acheson said that he thought it was a great mistake for these negotiations to be approached primarily in terms of principles. Rather we should concentrate upon the best and most practical methods of accomplishing the goal upon which we have already agreed. With respect to government-to-government contracts there is no difficulty. With respect to other contracts he could see that there might be certain payments which the British would not feel it proper for them to make, such as agents’ commissions, etc. He suggested that a satisfactory solution would be for the British to allow us to proceed with our contracts, and submit them to the British for payment with the understanding that the British could audit them and say: This is all right and we will pay it, but this on the other hand does not seem a proper charge for us to pay. Sir David agreed that something along these lines should probably result. He said that until all the Dominions and India have replied to our notes and have agreed in principle on the provision of raw materials as reciprocal aid, it was unlikely that we would make such progress in our negotiations. However, as soon as those replies have been received, he was confident that good will and mutual tolerance would find a way.
The White Paper on reciprocal aid was then discussed. Sir David was most anxious to have an indication as to whether this Government found the proposed White Paper on the whole acceptable. The American members offered a number of minor suggestions. In addition, it was explained that we were unable to obtain agreement to the sentences on the reciprocal aid of raw materials as long as OEW felt it possible that negotiations on this point might be an utter failure. Sir David understood this position and requested that Mr. Acheson write him to the effect that, with the exception of the above-mentioned sentences, the United States Government had no comment that it wished to make upon the White Paper at the present moment.
Mr. Magowan said that he wished to talk further to Mr. Achilles on the substitute for the Eden–Winant White Paper, and hoped that Mr. Acheson would be able to see him on this question by Friday of this present week.47
After agreement had been reached on the above points, Sir David Waley indicated that he wished to raise a closely related question. He said that he had heard numerous rumors to the effect that the United States Government was planning to reach a decision with regard to the increased British gold and dollar balances, and that action to decrease these balances might be taken. He pointed out that Secretary Morgenthau is to be in London shortly and that the [Page 94] Chancellor of the Exchequer49 has been planning to talk to Mr. Morgenthau on this whole question. Sir David Waley indicated that it would be most unfortunate and would give rise to a serious misunderstanding and even bitterness, if a decision were to be reached, and action taken unilaterally before the Chancellor of the Exchequer should have had this opportunity to talk the matter over with Mr. Morgenthau. Mr. Acheson said that he was not aware of any likelihood that this Government might make a decision before these conversations had taken place, but that he would be glad to speak to Mr. Stettinius of this. He said that he could quite understand the importance which Sir David would attach to this point.