Foreign Relations of the United States, 1947, The British Commonwealth; Europe, Volume III

841.5151/6–2347: Telegram

secret
us urgent

London, June 23, 1947—8 p. m.

3443. From Clayton1 and Ambassador for State and Treasury.

1.

For our information only, it would be helpful to know:

(a): Whether as a matter of policy, it would be feasible to grant extension of time for any British obligations relating to sterling convertibility in exceptional cases under Sections 7, 8, and 10 of financial agreement;
(b): Whether it is feasible to take up at this session of Congress under Section 12, relaxation of British obligations under Section 9 relating to nondiscrimination in imports or a general relaxation of UK convertibility obligations.

2.

What action has been taken on British proposal for discrimination in imports between UK and colonies having common quota in IMF?

3.

None of these questions have been raised with us by British.

[Clayton and Douglas]
Douglas

Under Secretary Clayton was in London to meet with leading British officials. These discussions, held June 24–26, covered a wide range of subjects related to economic and financial affairs; the major focus was on matters related to European recovery and the role that the United Kingdom might play therein. Aspects of the British financial crisis and the sterling convertibility obligation were discussed. Substantially complete records of these conversations are printed in the compilation dealing with the creation of a European recovery program (the Marshall Plan), pp. 197 ff.↩