841.51/10–1047: Telegram
The Acting Secretary of State to the Embassy in the United Kingdom
4491. From State and Treasury. Urtel 5482, Oct 10.1 We believe interpretation of Section 9 in Emb press release of Sep 18 as reported [Page 87] in Embtel 5049, Sep 182 provides sufficiently broad basis for answer to possible parliamentary inquiries on relation of that Section to Brit imports. It is not believed necessary to have formally agreed statement but Emb should indicate to appropriate Brit officials this Govt’s hope that if foregoing interpretation of Sec 9 is used in Parliament it will be accompanied by strong reaffirmation of adherence to principles of Sec 9.
For urinfo NAC has decided that before reaching final decision to release remaining $400 million circumstances should be discussed with foreign relations committees House and Senate scheduled to meet about Nov 10. Accordingly you should do all you can to impress Brit that it would be most helpful if parliamentary discussion respecting any aspect of financial agreement could be kept to minimum during this period. NAC has further decided there should be no exchange of letters between the two governments at this time concerning any phase of financial agreement. We are proposing to Brit here that official but unannounced exploratory discussions be initiated immediately in Washington. Discussions can begin with Brit officials already at Emb and UK Treas Del, leaving to later determination need additional officials from London.