851.5151/1–2148: Telegram

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

top secret
us urgent

349. For Secretary of State and Secretary of Treasury. Guindey has advised that Gutt (following Executive Board consideration) has appealed to French Government to withdraw proposal in present form. Guindey said from telephone conversation with Washington it was gathered that Gutt, in face of strong opposition from British and Canadians, wishes to avoid bringing French request to vote. He understood Gutt’s request was supported by United States, but he had no indication of position of executive directors other than British and Canadian on substantive proposal. Guindey said a counter proposal was suggested which would permit a special rate for “tourism and capital transactions” but not for “commercial” transactions. He had no details and was not certain of rate which would govern for official transactions. He had no information on possible free gold market under new proposal.

He said British are also expected to bring strong pressure directly on French Government to withdraw proposal and perhaps will suggest alternative procedure. Hall-Patch1 arriving in Paris this morning. According to Guindey question is now one for ministerial decision after representation of Hall-Patch and complete report from Washington are received.

For reasons given in mytel 314 and related Embtels, question may assume vital importance for present government. Anticipating possible further contact by government ministers, I would appreciate urgent cable giving appropriate statement of United States position.

  1. Sir Edmund Hall-Patch, a Deputy Under-Secretary of State in the British Foreign Office.