View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

BOARD OF GOVERNORS
or

THE

FEDERAL RESERVE SYSTEM

Office Correspondence
j0

Board of Governors
"

prom

^\ 0 s
>
Walter R» Gardner y y [ \>

Date—Apm is, 1944—
Subject! International Monetary
Conference: cables to England,
Russia, Mexico, and Brazil

In accordance with Governor Szymczak's request I attach
copies of two cables sent to the British on the subject of an international monetary conference* I have just brought back with me two
more cables from the Treasury, one, the British reply of April 9,
and the other, a message from Secretary Morgenthau to the Russian
Commissar of Finance dated April 10. Copies of these will be sent
to the Board members as soon as they can be made,
I have also learned from a confidential source other than
the Treasury that cables have already gone out to Mexico and Brazil
summarizing the Joint Statement and asking their assent to its publication with a view to holding an international conference*
Attachments




COPY

April 5, 1944
Please send the following cable to the American Embassy, London*
"To Winant from the Secretary of the Treasury*
"Please call upon the Chancellor of the Exchequer and
inform him of the following personal message from me* I should
also appreciate it if you would supplement the message with an
oral explanation of the urgent necessity for an immediate reply.
"1* The President has given his approval to the calling
of a conference of the Ministers of Finance* of the United and
Associated Nations for the purpose of establishing an International Monetary Fund and a Bank for Reconstruction and
Development* He has specified that if a conference is to be
called, he wishes it convened during May* To do this, it is
essential to publish the Joint Statement of recommendations
within a week or so inasmuch as a minimum of five to six weeks
must elapse between the publication of the Joint Statement and
the convening of the conference. This period is needed both to
prepare for the conference and to permit discussions of the
Joint Statement in Parliament as requested by the U* K* experts*
"2* Before we can publish the statement, we must also
have the acquiescence of the technical experts of some other
countries* The U* K* technical experts have insisted that we
do not show even a preliminary draft of the Joint Statement to
the technical experts of other countries until its publication
has been agreed between us* For this reason we need about a
week between the day the U* K. experts agree to the Joint
Statement and the date of actual publication*
"3* It is not my intention to try to influence in any way
the decision of the Chancellor of the Exchequer on the recommendations of the technical experts* As the Joint Statement
explicitly states the recommendations are solely those of the
technical experts, and governments are in no way bound by them.
My purpose is to inform the Chancellor of the Exchequer of the
necessity for a prompt decision on whether or not the U* K*
experts agree with the Joint Statement of principles*




"Ministers of Finance11 was changed to "Governments"
in the cable that was actually sent* (W*R.G*)




M . It is clear that unless we hear from the U. K.
within a few days or so regarding publication of the Joint
Statement we shall be unable to hold a conference at the time
selected by the President. If it is not held then, there is
no saying if and when a conference can be held. It is my hope,
therefore, that you will let me know within a few days the
decision on publication of the Joint Statement.
n

5 . If the Joint Statement is published promptly there
would still be time for public discussions of the recommendations of the experts before invitations to the conference are
issued• Under any circumstances, it is my intention to appear
before the appropriate Congressional Committees soon to inform
them of the status of the technical discussions. The precise
date for issuing invitations and convening the conference
could be settled soon after the Joint Statement is published."

HDWtEMB/jm

4/5/44

r

C

O

P

I

^-

••'""-

••••'

• * •

—

•" •

—
5

H

*

A p r i l 1 0 , 1944
U» S. URGENT

Please send the following cable to the American Embassy, London*
To the Ambassador from the Secretary of the Treasury.
W

I appreciate your help in trying to expedite the decision on
whether to publish the Joint Statement of principles. Please call
upon the Chancellor of the Exchequer and give him this message:
n

!• I have received the cable of the Chancellor of the Exchequer.
I want to emphasize again that my inquiry in Ho. 2951 of April 5, 1944
is solely concerned with the prompt decision on publication of the
recommendations of the technical experts and not with the larger question
of the attitude of the governments on the proposals.
W

2 . When the Joint Statement of principles was drafted, the experts
of the United States and the United Kingdom had constantly in mind that
no formal commitment of governments at this stage of the discussion should
be called for. It was clearly under stood by both groups that this was to
be so and accordingly the following provision was written into the Joint
Statement: fGovernments are not asked to give final approval to these
principles until they have been embodied in the form of definite proposals
by the delegates of the United and Associated Nations meeting in a formal
conference.f In view of this provision I fail to understand why the
question is being raised in connection with the publication of the Joint
Statement.
tt

3. We are quite aware that you will want an opportunity for debate
on the Joint Statement in Parliament. It was specifically agreed that
a period of a week or so immediately after the publication of the Joint
Statement would suffice for Parliamentary debate. A final decision to
call a conference would not be made until after the debate.
"4. It has now become necessary for me to appear sometime next
week before the appropriate committees of Congress and advise them either
that agreement has been reached among the technicians or explain the inability of the technicians to go forward with the contemplated program*
It would obviously be of considerable help if I could announce when I
appear before the Congressional committees that the Joint Statement would
be published the next day and I could communicate the tert of the Joint
Statement to them.




n

5. I feel that the U. K. Treasury representatives have placed us
in a most embarrassing position by their delay in indicating to us their
decision on the sole matter of publication of the Joint Statement. The
anomalous position in which we are placed has made it impossible for us
to keep the Congress, our public and other governments informed, has
given rise to harmful rumors, and has increased the difficulty of
carrying through our program. Unless we hear immediately that the
Joint Statement can be published next week (in time to clear with the
technicians of other countries before my meeting with the Congressional
committees) then it is my personal opinion that we shall not be able to
hold a conference this year. This has all been made clear to Waley,
Grant and Opie on the occasions of their return to London for the information of the appropriate officials in London.*

HDW:BflB:AFL;LP:EGC?lr




4/10/44