851G.10/5–1553: Telegram
The Chargé at Saigon (McClintock) to the Department of State
2215. Department pass Rangoon, Hanoi; repeated information Paris 375, Bangkok 102, Singapore 64, Hong Kong 89, Tokyo 87, Rangoon 26, Phnom Penh, Vientiane unnumbered, Hanoi 280. Director General of the Institut d’Emission, which is a quadripartite institution controlling currency issue of Associated States with French participation, tells us he was quite aware sudden French measure to devaluate piaster was taken under American pressure. Same remark was repeated independently by head of Banque d’Indochine.
We were not surprised that this canard should so soon appear and at Monday’s1 staff meeting had alerted our propaganda people to meet it. While we are of course replying to such remarks that French decision to devaluate piaster was unilateral, it would be helpful if Department could confirm our impression that US at no time requested devaluation of French Government.2
Attitude of more respective French officials here was summed up by General Allard when he expressed regret that for momentary domestic political advantage French in devaluating Indochinese piaster had jeopardized whole framework of relationship Associated States to French Union.
- May 11.↩
- In telegram 2260 to Saigon, May 16, the Department of State indicated that the Embassy was correct in its belief that the United States had at no time requested France to devalue the piaster. However, the United States had shown great interest in French views on the subject. The attention of the Embassy was directed particularly to the minutes of the meeting of Mar. 30 with Letourneau in Washington. (The pertinent portion of the minutes of that meeting is printed on p. 440.) (851G.10/5–1553)↩