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. TO: ,
Digitized forOffice
FRASER of the Under
Secretary
•
PARAPHRASE OF
FROMt
American Embassy, Rio d© Janeiro, Brazil
BASS I
January 14, 1942, 9 p.ia.
.:
9, Section One
This M M I M g t is in strict confidence from Mr, White
for the Secretary of the Treasury,
The wish wmfl expressed by Kr« "Cellos to pv«ft«iit a
resolution, similar to the attached draft, on International
stabilization, if you and anyone else you feel necessary
approve the presentation of the resolution.
It is my su£-. esuion that if you desire the presentation of the draft at this Conference you have Berle and
perhaps SftOlea approve it,
Since there is some importance
attached to this matter and the eventual calling of a
conference of associated and united nations is implied,
you ML? even want the draft or merely the idea approved
by the President before you recona|®nd it to be submitted
li..--.re. The statement 7/as made by kr. Welles that the idea
of a stabilization fund for the period after the was has
in general been approved by the President, but Welles did
not indicate there thfl specific proposal was fMf known to
the Presidsnt.
The pertinent rules of the conference require
unfortunately that resolutions must be submitted by
noon
-2noon on January 16 (Friday).
Since it was first neces-
sary for Me to discuss the idea in general terms with
some of the financial representatives of the other ^
republics in order to ascertain the prospects of favorable
reception at the present Conference I have not been able to
send you this message sooner, For rather obvious reasons
the general idea was enthusiastically received 'by those
with whoa I have discussed the matter.
In view of the fact that the resolution only calls for
participation in a conference which would be called to
consider the establishment of a fund and in view of the very
general terms in whiftfe the uesolution Is stated, the clearance of the phraseology of the draft ; iiould not take very
long.
It is of course possible that the President may con-
sider some other time more appropriate for the initiation
of tho Idea. That question has been discussed with I.Ir.
welies and he decided that it would be all right for the
United States G-overnment to submit it here if /ou approve
the resolution.
It is possible that you will feel tnat there
is not time to clear the matter in a way which would be
satisfactory to TO,:..
If this is the case it is .probably
better chat some other time be selected to advance a proposal
for the establishment of a stabilisation fund.
In the opinion
of Mr. WfcUea the submission of the resolution here would be
very helpful but postponement is to be preferred to difficulties.
A reply before Friday noon would be appreciated what-
ever your decision may be.
RB
±1
Rio dE JariEiro
Dated January'" 14, 1942
Rec'd ICsoS p.m.
SEcrEtary of StatE,
7/ashington,
TRIFLE PRIORITY.
9, January 14, 9 p . m . , (SECTION TV/O).
"REsolution on the s t a b i l i z a t i o n fund of t h e
u n i t Ed and a s s o c i a t e d n a t i o n s ,
T
7hErEas. onE, In thE
attainmEtit of thE Economic objEctivEs of thE Atlantic
Chart EP thE rnorE EffEctivE mobilization of foreign
to
ExchangE rEsourcEs of indi sputablE importancE and
such mobilization should bE of assistancE In thE war
of frEEdorii end liberation which tliE united nations arE
conducting and for thE defense of bthEr
free and
soverlEgn nations asoociated v/ith them; and
Two.
The unitEd nations and other nations associated
with than can cooperate in creating an organization
to promote stability in foreign EXChangE rates, encourage
thE int Ern at i ona 1 m ov an en t of pr oduc t iv e car) 11 r 1,
f a c i l i t a t e the reduction of a r t i f i c i a l barriers to thE
free movement of goods, help correct thE maldlspositon
of gold,* strengthen monetary systems and f a c i l i t a t e
#9, January 14, 9 p.m., (SECTION TWO), from
Rio CIE Jan Eire •
thE sEttlEiuEnt of public and p r i v e t E international
a Eb t s;
ThE t h i r d mEEting of consultation of tliE IlinistErs
of ForEgin Affairs of thE AmErican REpublics PESOIVES:
Onz.
To rEcomniEnd that thE G-ovErnriEnts of thE
AmErican Rspublics participate with thE GovErnnEnts
of thE u n i t Ed nations in a spECial Conf EPEIICE of
/ L i n i s t E P G of FinancE or t h s i r |r EprESEntativEs, to "b E
J
callEd for thE 'joirpos E of corio iclErin{_; thE Establishment
of a stabilization fund of thE unitEd and associatEd
c
nations;
Two.
To r Econii-iEnd t h a t p a r t i c i p a t i o n
in thE con-
fEPEnCE shall bE op En to a l l nations that sub o cribs
to thE objEctivEs of tliE Atlantic Chart Er;
ThrEE.
To rEcomrnEnd that thE confETEncE, in
considErinr thE EstablichniEnt of
such a fund, "shall
formulatE thE plan of organization, pov/Ers and PEGOUPCES
nECEssnry to thE propEr functioning of thE fund,
shall
dEtErminE thE conditions rEquisitE to p a r t i c i p a t i o n
in thE fund,
and 3hall proposE principlEs to guidE
th E fund in i t s opEra11 on;
Four.
C
To PEconmEnd that among/thE followingj
conditions
-3-
#9, January 14, 9 p.m., (SECTION TV/O), f rom
Rio dE
conditions rEquisitE to participation in thE fund
bE includEd in thE dElibErations of thE confErEncE
thE following;
cooperation in adopting harmonious
policiEs looking toward thE gradual adoption of frEE
forEign EXChangEa with rEaoonablE stability in
forEign ExchangE ratEs, thE rEmoval of arbitrary and
discriminatory rEstrictions on intErnatlonal transactions, and thE maintEnancE of monEtary policiEs
that avoid sErious inflation or dEflation."
(END OP MESSAGE).
WELLES
HEM
@FedFRASER