The Acting Secretary of State to the United States High Commissioner for Germany (McCloy), at Frankfurt
1651. For McCloy Eyes Only.
You are authorized accept 23.8 rate which we regard as within range of appropriate rates though perhaps on low side, and which we believe shld be adopted without further debate in view obvious disadvantages over-riding Germ initiative.1 If you find it absolutely necessary you are authorized take action within latitude requested ur earlier cable.2 In accepting the 23.8 rate, we are concerned that it may prove to be an undervaluation which wld prevent the establishment of a reasonable payments equilibrium within Eur. Consequently, we feel that effects of the rate shld be closely observed and that its appropriateness shld be reviewed in the relatively near future.