841.51/10–1847: Telegram
The Chargé in the United Kingdom (Gallman) to the Secretary of State
5589. For State and Treasury. Prior receipt your 4491, October 17, BOT had indicated desire discuss with us today draft statement to be made in Parliament reference Section Nine financial agreement. Substance your telegram communicated to them. Following draft not yet considered by Ministers but being sent British Embassy Washington for comment and with instructions to communicate to you.
“During the visit of the Eady mission to Washington in August, discussions took place between the mission and officials of the US administration about the present position as regards the non-discrimination provisions of the American loan agreement. During these talks the officials of the two governments were able to discuss and explore together in detail the practical interpretation of the provisions of Section Nine of the loan agreement against the background of the overseas financial position of the United Kingdom. These discussions revealed that there existed very substantial agreement between the two governments about the meaning of these provisions relating to non-discrimination. When Mr. Snyder came to this country in September [Page 88] for the I. M. F. meetings, these discussions continued on the official plane. At the conclusion of Mr. Snyder’s visit to this country, the following statement was issued by the US Embassy in London. (Here follows Snyder statement quoted Embtel 5049.) In the light of the discussions which have taken place between the two governments and of the above statement, His Majesty’s Government are satisfied that, for the present, and in the light of the existing supply and availabilities position throughout the [apparent garble] the provisions of Section Nine of the loan agreement are not operating to prevent the United Kingdom from importing any goods, including foodstuffs, which we are anxious to take and which we can afford to buy. As regards the future position, discussions with the US Government are continuing.”1
Regarding reaffirmation adherence to principles of Section Nine, BOT pointed out difficulty and inadvisability doing this in text of above statement but promised to recommend to Ministers that reaffirmation of principle be worked in at some point in discussion in Parliament.
- Marginal notation: “Statement cleared in Treasury, OFD and ITP, and British Emb. notified 10/20/47 11:30 a. m. AMR[osenson]”. London telegram 5764, October 29, reported that the statement was issued on October 28 “with only minor changes in wording from text quoted in reference telegram.” (841.51/10–2947)↩