841.51/7–947: Telegram

The Ambassador in the United Kingdom ( Douglas ) to the Secretary of State

confidential

3758. For Marshall from Douglas. Reference urtel 2901, July 7, 1947.1 1. Statement in British Treasury representative’s letter to Secretary Snyder that I was kept informed through course of negotiations with Egypt is not correct. Following completion of Egyptian negotiations, [Page 33] Sir Wilfrid Eady informed Gunter of various aspects of Egyptian negotiations and substance of this conversation was reported by cable No. 3655, July 3.2

2. We assume that reference cable was sent prior to receipt by Secretary Snyder from British in Washington of long British memorandum concerning their negotiations with various countries relative to sterling convertibility. Copy of this memorandum received by Embassy on July 7.3

3. We have always followed policy of reporting promptly to State and Treasury either by cable or airpouch any information received by Embassy relative to British financial negotiations with third countries and her general financial position. We will continue this practice. It would be helpful to us to receive information supplied to State and Treasury by British in Washington. In this way Department, Treasury and Embassy will be fully informed at all times of information supplied by British. It would be helpful also to know what information you have requested from British. It may be embarrassing to us here to find that communications of which Ave have no knowledge have passed in either direction between Washington and London.

4. British Treasury usually supplies information requested by Embassy relative to their financial negotiations, although this information not always supplied promptly. Recently because of large number of negotiations underway, it has been impossible to follow in detail the course of each negotiation. However, memorandum referred to in Paragraph 2 presumably brings us up to date. With reference to Secretary Snyder’s letter of May 7 to Dalton,4 Gunter has learned from British Treasury that they consider Dalton’s letter of May 23 to Secretary Snyder5 at least partial reply.6 We do not know contents this letter.

5. Have previously reported that request made soon after arrival and repeated on several occasions for detailed information on British exchange position was not finally given us until late June.

Douglas
  1. Not printed.
  2. Not printed.
  3. Not printed, but see footnote 1 to telegram 2906, p. 32. The Department informed Ambassador Douglas in telegram 3466 on August 13 that “your assumption correct that Deptel 2901 July 7 was prepared prior to receipt by Secretary Snyder of UK Treasury Delegation’s letter.” (841.51/7–947)
  4. Not printed.
  5. Ante, p. 15.
  6. The Department, in telegram 3466, August 13, agreed that “Dalton’s letter to Secretary Snyder of May 23 is regarded as having been only partial and rather general response to Secretary Snyder’s letter May 7.” (841.51/7–947)