740.00119 Control (Germany)/5–2948: Telegram

The Acting Secretary of State to the Embassy in the United Kingdom

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2002. For Douglas and Clay (Eyes Only) from Saltzman. French have tried a new end run by asking for postponement currency reform at least until July first on grounds French zone food shortage and delay completion their plans. If as claimed by French Emb postponement would remove last obstacle to London agreement we would favor such brief delay on understanding that western zone commanders would press forward with necessary preparations and would be ready to institute currency reform immediately following any Sov conversion measure adopted prior to July first. We have not discussed this with Army here since Acting Secretary first wishes to get your views.1 [Saltzman.]

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  1. In telegram 2353, May 29, from London, not printed, Douglas expressed his doubt that the question of currency reform had any influence on the French position at the London Conference. But he further stated that if it were absolutely certain that postponement of the currency reform would remove the last obstacle to agreement at the London Conference, then he would recommend such a postponement (740.00119 Control (Germany)/5–2948). Subsequently, Douglas recommended that the French be told that currency reform was a matter which must be settled by the Military Governors (Telegram 2362, May 30, from London, not printed, 740.00119 Control (Germany)/5–3048).