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

851.5151/11–847: Telegram

The Ambassador in France (Caffery) to the Secretary of State

top secret

Paris, November 8, 1947—1 p.m.

4797. Martin, President Exim Bank, summarized to me as follows talks I arranged for him with Ramadier, Schumann [Schuman?], Monnet,¹ Monick:²

1. French indicated intention withhold change in franc rate until interim aid in hand (Embtel 4568³). (Prospective rate not mentioned but Martin indicated to me that 300 francs to dollar would seem reasonable at this time.)

2. French made half-hearted query whether Exim Bank would consider loan 300 million dollars against 104 million dollars from gold pot⁴ and unliquidated securities formerly held by French nationals as security. (Embassy’s information indicates value latter far short necessary amount make total security sufficient cover 300 million dollar loan.) Martin replied such operation not normal to his bank, indicated would not consider request favorably if made formally and suggested gold and securities be used to meet current French dollar needs. Schumann indicated French would so use gold and securities when liquidation feasible.

3. French intend meet end December obligation to Exim Bank.

Caffery

1. Jean Monnet of the French Planning Commission on October 2, 1947, was made chairman of a special “balance sheet commission”.
2. Emmanuel Monick, Governor of the Bank of France.
3. Not printed.
4. The “gold pot” principle “recognizes that the countries whose gold was wrongfully taken by Germany” during World War II “are entitled to its restitution”. For explanation of the principle, see Foreign Relations, The Conference of Berlin (The Potsdam Conference), 1945, vol. ii, p. 938, footnote 4.