845.515/532
The British Ambassador (Halifax) to the
Acting Secretary of State
Washington, November 9,
1943.
My Dear Ed: On July 12 I wrote to The
Secretary about the reinforcement of the silver position in India, and I
was very grateful to hear that the State Department soon after promised
Sir Cecil Kisch
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and Sir David
Waley that they would see if they could help, if the negotiations with
the United States Treasury did not move rapidly to a successful
conclusion.
I now enclose a copy of a letter which I am writing to Mr. Morgenthau
from which you will see that as regards silver for sale in the market
the matter has not moved forward at all since July. You will see from my
letter that the Government of India regard this question as one of great
importance and real urgency. I am accordingly now writing to you to say
that I very much hope that you can give me your help.49
Very sincerely,
[Enclosure]
The British Ambassador (Halifax) to the Secretary of the Treasury (Morgenthau)
[Washington,] November 9,
1943.
You will remember that I told you in the summer that the Government
of India attached very great importance to their request for 100
million ounces of silver for sale in the market, and that the United
States Government could give valuable help to them in their present
economic problems by a speedy acceptance of this request. The
Government of India have greatly appreciated the assistance which
the United States Government have already given in providing 20
million ounces of silver for coinage.
But coinage was only one of two complementary moves in protecting the
Indian economy, of which the other is the sale of silver to prevent
the market price from rising. The approach of the South Eastern
Asiatic campaign adds to the problem an increasing urgency as it
will inevitably aggravate the inflationary position in India, and
renders it more essential than ever that every step to combat
inflation be taken immediately. I was therefore disappointed to
learn that the United States Treasury told Mr. Mahindra and Sir
David Waley on November 8th that it is their decision that the
matter should still be deferred.
The reasons for which the Government of India attach so much
importance to the matter were fully stated in Sir Cecil Kisch’s
letter to you of the 27th August and I need not repeat them. I would
only say that it is the considered opinion of the Government of
India, who are faced with such grave economic difficulties, that the
United States Government could give them very real help by meeting
their request and that the matter is really and increasingly urgent.
You will realize
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how
serious a blow to the common war effort it will be if economic
troubles in India cannot be kept in check. Since the Government of
India who have this grave responsibility are so strongly of the
opinion that the sale of silver on the market is both important and
urgent, I trust that you may feel able to reconsider the matter, and
give a very present help in this time of trouble.
Yours sincerely,
