Memorandum by the Secretary of State to President Roosevelt 63

Secretary Morgenthau has shown me his Memorandum to you of December 31, 1943, on the subject of the United Kingdom’s gold and dollar balances.64 I share his desire to bring the matter to your attention and generally agree that the facts are as stated in paragraphs 1, 2, 3, and 4 of the Memorandum. I believe that it would be entirely possible in view of the improved British financial position to eliminate from lend-lease transfers goods of the character stated in paragraph 7 of Secretary Morgenthau’s Memorandum.

If, in your judgment, it is still practicable and wise to attempt to hold British balances to a fixed amount, I respectfully suggest that this policy should be made clear to the British, in order to avoid possible friction and feeling of a serious nature between the two governments by reason of the great importance which they seem to attach to the need for fullest discussion of their liabilities in connection with any possible policy of limitation of their assets to a fixed amount.

C[ordell] H[ull]
  1. Notation on the original reads: “Orig sent to Sec. Morgenthau, who will attach it to his memorandum & forward to White House.”
  2. The memorandum here referred to was presumably a draft of the one sent to President Roosevelt on January 4, 1944, infra.