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
|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.]
- Dated May 10, supra. ↩