841.24/11–2244
The Secretary of State to the Secretary of the Navy (Forrestal)64
My Dear Mr. Secretary: I have the joint letter of November 22, from you and the Secretary of War, in regard to the pricing of reciprocal aid received from the United Kingdom. As you indicate in your letter, the State Department instructed Ambassador Winant to associate himself with Mr. Denby of FEA and the representatives of the Navy and War Departments in negotiating with the British for the furnishing of more detailed information than had hitherto teen made available.
As a result of these discussions the British have agreed to make available for past transactions substantially more details than have been furnished heretofore, and also to make an ad hoc investigation on any particular items when requested by the United States. For the future, most of the Ministries involved are prepared to give practically complete information, although in some cases the pricing will not be on the voucher when issued but will be done centrally at a later date. Furthermore, all of the Ministries are prepared to give representatives of the United States access to their record of reciprocal aid for any individual items on which more detailed information is desired.
I understand your desire to have as complete financial records as possible. The State Department, however, in view of the manpower and accounting problems that the U.K. feels would be involved if the wishes of the Navy and War Departments were met in every detail, is not in a position to press for more information than the British Government [Page 84] indicated, in the recent London discussions, that it would be in a position to furnish.
Representatives of FEA and the Clearing Office for Foreign Transactions and Reports are still in London, and are obtaining full information as to exactly what details will be made available by the various British Ministries under the general agreement that was reached with the British. I also understand that discussions recently took place between Mr. Denby and the International Division of the War Department, pursuant to which Major Overby,65 who has been in Paris, is to stop off in London to consider exactly what details are to be available as a result of the earlier discussions.
When the results of these current discussions in London are known, we would then be in a position to review the situation with representatives of the Navy and War Departments and of FEA, and see whether the details that the British will furnish conform with the understanding that they gave to the American representatives at the earlier discussions.
Sincerely yours,