The Ambassador in France ( Caffery ) to the Secretary of State

No. 4548

The Ambassador has the honor to enclose for the Department’s records a copy of an informal memorandum which was prepared by [Page 417] this Embassy on the forthcoming economic conversations which Mr. Léon Blum will initiate in Washington. This memorandum was based principally on the final paragraphs of the Department’s telegram no. 573 of February 4, 7:00 p.m. Copies were furnished Mr. Blum and a member of the Foreign Office who will be in the Blum party.

The observations which this memorandum elicited in the Foreign Office were reported in this Embassy’s telegram no. 892 of February 24.33


The policy of the United States in relation to the problems of French economic rehabilitation might be recapitulated as follows:

  • I—The United States Government is following sympathetically the plans being developed and the measures already taken by the French Government aiming toward the solution of France’s financial and economic problems. The United States Government is anxious to lend all appropriate aid, consistent with its capable in developing a sound program of reconstruction in France.
  • II—The joint examination of the financial needs for the execution of such a program will necessarily entail the exploration of certain basic factors, more particularly these:
    French foreign exchange resources and prospective balance of payments.
    Unilateral measures available to France to attract foreign capital, to recover its tourist trade, and to revive export industries.
    Use of existing American credits.
    Planned recourse to the International Bank for long term reconstruction needs. The United States Government, the largest subscriber to the International Bank (involving therefore floating in the United States the larger part of the securities issued or guaranteed by the Bank) regards this institution as the proper and principal center for financing large scale reconstruction projects.
    The interim need for further Export-Import Bank financing until the International Bank’s resources become available.

  1. Not printed.