Lot 60–D 137: Box 1

Minutes of Twenty-seventh Meeting of the National Advisory Council (and the Ninth Meeting of the U.S. Top Committee on French Financial Negotiations), Washington, May 14, 1946

[Page 913]
Present: Secretary Fred M. Vinson (Chairman), Treasury Department
General W. O. Reeder, Visitor
Col. Carl Pforzheimer, Visitor
Mr. W. L. Clayton, State Department
Mr. George Luthringer, State Department
Mr. Henry R. Labouisse, State Department
Mr. Hubert Havlik, State Department
Lt. Col. C. J. Shields, Office of Foreign Liquidation Commissioner, State Department
Mr. Herbert Parisius, Commerce Department
Mr. Frank Isenhart, Commerce Department
Mr. Marriner S. Eccles, Board of Governors, Federal Reserve System
Mr. J. Burke Knapp, Board of Governors, Federal Reserve System
Mr. Wm. McC. Martin, Jr., Export-Import Bank
Mr. August Maffry, Export-Import Bank
Mr. Rifat Tirana, Export-Import Bank
Mr. H. D. White, International Monetary Fund
Mr. E. G. Collado, International Bank for Reconstruction and Development
Mr. E. M. Bernstein, Treasury Department
Mr. I. S. Friedman, Treasury Department
Mr. Andrew Kamarck, Treasury Department
Mr. Harold Glasser (Secretary), Treasury Department
Mr. Allan J. Fisher (Assistant Secretary), Treasury Department

[Here follows item 1, not printed.]

2. Report on Italian Non-Troop Pay Account

Mr. Clayton said the proposal for transference of the non-troop pay dollars to the Italians had been explained to the Committee but met with an unfavorable response. (See attached memorandum).49 The reaction was largely based on the fact that Italy had been a belligerent. The Committee had felt it would be all right to make a loan to Italy, but they were averse to transferring to Italy the $100 million held in the non-troop pay account.

3. Proposed Export-Import Bank Loan to Italy

Mr. Clayton said Secretary Byrnes had agreed to a figure of $100 million as reparations to Russia from Italy to be obtained (1) from the foreign assets in the three Balkan States of Hungary, Rumania and Bulgaria, (2) merchant shipping (two large passenger liners), (3) any excess of productive facilities for military goods which were not convertible to peace time use and (4) naval vessels. This was in contrast to the $500 million Russia had asked at Potsdam.

Mr. Eccles commented that Italy is very short of ships and if Russia gets these Italian merchant ships we might have to lend her money or give her ships on credit. Mr. Clayton thought the latter [Page 914]more probable, since we have plenty of ships. Mr. Eccles said that Russia needs freighters whereas Italy needs ships for her tourist trade, and that we might let Russia have freighters or perhaps sell them to Italy and have Italy trade them to Russia for the passenger liners. Mr. Clayton agreed this might be feasible.

Mr. Clayton said that the cable requesting assurance that the British and French would not ask for reparations had been sent immediately after the last meeting but that no reply had been received. He did not think it was appropriate to take action on the matter of the Italian loan until the reply had come in.

The Council agreed to defer action.

[Here follow items 4, 5 and 6, not printed.]

  1. Dated May 10, supra.