840.00R/5–1450: Telegram

The United States Special Representative in Europe (Harriman)1 to the Administrator of the Economic Cooperation Administration (Hoffman)2


Toeca 581. Personal for Hoffman, Foster, Bissell from Harriman.

British plan submit paper to Payments Committee OEEC at meeting May 16 which in substance will constitute acceptance Continental proposal thus meeting requirements set forth in aide-mémoire of SecState.
We have repeatedly emphasized to British that we could not negotiate agreement here. They understand this position and concur. While fully reserving our own position pending outcome of OEEC Payments Committee meetings in Paris, we have expressed hope that continental group will recognize British paper to be substantial acceptance their proposal.
Assuming quick agreement on terms sterling area participation in accordance foregoing, it will also be necessary work out basic terms of provisions relating gold and dollar payments and credits. While U.K. fully accepts principle of fractional dollar payments, there must be general understanding as to size and terms of credit quotas, progression in dollar payments etc. U.K. shares our anxiety have substantial agreements on all issues of principle before end next week.
I am seeing Cripps tomorrow to obtain final text of British paper to be submitted to Payments Committee. Cripps also expects to discuss this with Stikker.
Following paragraph sets forth preliminary draft British paper representing outcome of SecState aide-mémoire and supporting discussions.

[Here follows the preliminary draft. The final text is printed in Toeca 587, infra.]

  1. Repeated to Paris for OSR, Torep 496.
  2. Harriman was at this time in London participating in the Foreign Ministers Meetings.