841.50/8–2247: Telegram

The Acting Secretary of State to the Embassy in the United Kingdom

confidential

3648. For Douglas. NAC meeting this afternoon confined to presentation by Eady of problem presented to UK by Section 9 in view of increased [Page 69] dollar shortage and potential increased availability of goods in areas in which other payment possibilities might be available to UK. He went on to say that discussions at the technical level had indicated UK may have been interpreting Section 9 too strictly but that a solution of the UK problem would probably require some form of agreed modification of Section 9. No decision taken by NAC other than work at the technical level should continue. Eady returning London tomorrow.

Lovett