841.24/2130: Telegram
The Acting Secretary of State to the Ambassador in the United Kingdom (Winant)
7026. Personal for the Ambassador. Treasury and FEA have considered the proposed British White Paper on reverse lend-lease and have indicated that they do not wish to raise any objection to its publication (your 7622 of November 362). The President is planning to deliver a report to Congress on the same subject63 at about the same time, and I have promised to give Lord Halifax a draft of this report as soon as possible. We understand that the British propose to issue their paper on November 11.64
Negotiations on raw materials had until recently been proceeding slowly due to a difference on principle between FEA and the British Raw Materials Mission. The British wished to follow a procedure similar to lend-lease procedure, whereas FEA wishes to undertake, except in government-to-government contracts, its own procurement, on the understanding that the British would then pay all or such part of each contract as they felt proper. Considerable progress towards agreement has now been made. On dollar balances, there have been some informational discussions with the British. However, the question of what U.S. policy should be is still under consideration between State, Treasury, War Department and FEA. A recommendation should go soon to the President.
[On December 8, 1943, at Cairo, Prime Minister Churchill handed to Harry L. Hopkins a composite memorandum relating to the question of British gold and dollar balances. This memorandum consisted of three separate documents drawn up respectively on October 26, November 11, and November 12, 1943. For the text of this composite memorandum, see Foreign Relations, The Conferences at Cairo and Tehran, 1943, page 822.]