845.515/548
The Under Secretary of State (Stettinius) to the Secretary of State
Mr. Secretary: You will recall during recent months discussions relative to lend-leasing silver to India and as to whether this should be a direct relation to India or whether the loan should be guaranteed [Page 263] by the British. The last time this matter was discussed you were definitely of the opinion the British should guarantee the loan. This was confirmed at a meeting of the Policy Committee in your absence.
However Acheson and Taft52 think there should be a direct relationship with the Indian Government. The decision was made that the loan should be guaranteed by the British and Lord Halifax has come back with a strong plea that the matter be reconsidered. He called upon me yesterday afternoon and submitted a note this morning. I have reviewed the matter with those in the Department again and they feel we should not change our position.
Inasmuch as it is likely the British will make quite an issue of the matter, I want to be sure that there is no possibility of your changing your position before advising the British definitely once and for all that we cannot change our position in the matter.
- Charles P. Taft, Director of the Office of Wartime Economic Affairs.↩