841.51/2–647: Telegram

The Secretary of State to the Embassy in the United Kingdom


620. For Embassy and Gunter from State and Treasury. 1. Munro, UK Treasury Delegation, has informed Treas that British Govt (presumably President of the Board of Trade) intends to invite Emb representation to British interdepartmental meetings at which implementation of Section 9 of Financial Agreement is being discussed. Dept and Treas recommend that Peterson attend for Emb and Gunter for Treas1 since they are fully acquainted with Dept’s and Treasury’s views concerning matter.

2. No statements should be made committing US Govt beyond restating general assumption that British will fully and completely implement Section 9. However, Peterson and Gunter should feel free to discuss problems fully, in order to obtain fullest possible delineation of British attitudes and plans. Dept and Treas particularly interested in British attitude toward use of provisions under Section 9 which [Page 4] release Britain from full implementation of non-discrimination in exceptional cases. This includes prospective census of inconvertible currencies accumulated before Dec 31, 1946 (which, confidentially, Munro indicates will be made available to us) and British attitude on relation of these accumulations to implementation. Peterson and Gunter should also attempt to obtain explicit commitment with respect to application of Section 9 to colonial possessions, together with statement of British plans for insuring implementation in those possessions where control may not be exerted by British Govt through legislative channels. In this connection refer Dept instructions to London 596, Nov 29 and 618, Dec 9;2 Dept instruction to Nairobi Dec 26;3 secret despatch 301, Dec 9 from Nairobi to Dept (copy to London);4 and Dept telegram 372, Jan 22.5

  1. Avery F. Peterson, First Secretary at the U.S. Embassy in the United Kingdom; John W. Gunter, U.S. Treasury Representative in the United Kingdom.
  2. Instruction 596 not printed. Instruction 618 dealt with British alleged discrimination against the United States in Palestine, and requested that this situation be discussed with British authorities. (667N.1112/11–1346)
  3. Not printed.
  4. Despatch 301 was a response to telegram 92 of December 4, 1946, which said: “Since London discussions likely please prepare documented report types and instances violations U.S. treaty rights in Tanganyika, Kenya, Uganda and Zanzibar for possible use.” The despatch was a memorandum commenting on the East African system of economic controls and the apparent importance of the violation of the treaty rights of American nationals. (648T.0031/11–2646, 12–946)
  5. Not printed.