800.515/9–544: Telegram
The Secretary of State to the Ambassador in the United Kingdom (Winant)
7203. For L. C. Aarons1 from Treasury. You are requested to transmit the following to Mr. Winant for his confidential information.
Brand, the Chief British Treasury Representative in Washington, called on Secretary Morgenthau today at the request of the Chancellor of the Exchequer2 to present representations against the possibility that yellow seal dollars would be used for pay of American troops in Germany. The main argument advanced by the British was that whatever else happens in Germany, immediately upon its occupation we should wish to make such civilian administration as may be found to exist in Germany work and especially to make it take the responsibility for maintaining such production as is necessary for the requirements of the occupying army and the minimum essentials of life of the German people. The British state that the Allied Armies should not have among their first tasks the restoration of the economy of Germany. The Secretary replied that the President is insistent on the use of dollars. However, the Secretary informed Brand that this matter will be again reviewed and the Secretary is trying to obtain agreement to the use of Allied Military Marks at a 10 cent rate. Brand stated that his government thought that a rate of 20 cents per mark would be more appropriate. The Secretary said that he did not feel that he could go to the President again with any rate higher than 10 cents. The Treasury has always preferred a 5 cent rate, but in order to meet strenuous British objections, had modified their position to take in the 10 cent rate. You will be advised of further developments in this matter. [Treasury.]