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

851.5151/10–1547: Telegram

The Acting Secretary of State to the Embassy in France

secret
u.s. urgent

Washington, October 15, 1947—6 p.m.

3941. For Emb and Tomlinson from State and Treas.

1. The President today authorized Army to purchase $50 mil in francs from French Gov. Francs will be used in payment of procurement obligations of Army or for other expenditures of US Gov.

2. Dept of the Army is cabling EuCom info MA Paris directing that purchase be made and transmitting copies of draft letters to be exchanged with French authorities providing that these francs may be used by Army in payment of any of its obligations in France and North Africa and may be transferred by Dept of the Army to any other dept or agency of US for subsequent use in payment for any expenditure of US Gov. In addition French Gov is asked to agree that it will at any time at request of US Gov repurchase against dols at same rate of exchange at which they were acquired any of such francs held by US. Letters will also provide that this repurchase guarantee will accrue to any agency of US Gov which subsequently acquires any of these francs from US Army.

3. It is assumed that letters will be exchanged between Minister of Finance and appropriate official of EuCom. Dept of the Army requests your assistance in completing details necessary for this purchase. Suggest you communicate at once with EuCom regarding this matter.

[State and Treasury]

Lovett