841.51/9–447: Telegram
The Ambassador in the United Kingdom (Douglas) to the Secretary of State
4809. For Lovett from the Ambassador. Public statements by British officials interpret Article 9 of financial agreement as preventing purchases by Britain of needed imports because this would also require purchases in dollar area and expenditure of dollar resources urgently needed for other purposes.
I have been considering desirability of suggesting to Bevin that steps be taken to avoid erroneous and provocative interpretations of this character but clearly the only way of allaying completely criticism and misunderstanding on this point would be relaxing Article 9 by exchange of letters possibly along line of State Department draft brought back by Hawkins from Washington.1
Understand that Treasury had doubts about this draft but that effort was to be made to reach agreement with Treasury by beginning of this week. Not advised whether any decision reached. I feel that if we are going to relax the obligations of Article 9 it is desirable from the standpoint of British public opinion that this action should not be too long delayed.
- Draft not found in Department of State files.↩