View original document

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

DEPARTMENT OF STATE

Memorandum

of jConversation
DATE: 11/19/47

SUBJECT:

Canadian Program for Subsidising Gold Production

PARTICIPANTS:

COPIES

TO:

Willard L* Thorp,
Hume Wrong, Canadian Ambassador

john Snyder and Frank Southard, Treasury
William K, Martin, Ixport-Import Bank
Marriner S. Eedes, Federal Reserve
Thoaas Blalsdell, Commerce
John Hickerson, EUR
Norman Hess, OFD

Mr* Thorp told Mr* Wrong that the new Canadian program for subsidising
gold production had been discussed in the National Advisory Council this
afternoon and that the members of the Council were very much disturbed by
the proposal* They felt it had serious implications for American policy
and also for the International Monetary Fund*
Mr* Thorp said he hoped very much that no action would be taken by
the Canadian Government on this until there had been an opportunity to discuss the program with the appropriate government officials* Ambassador
Wrong said that the program involved only a subsidy to marginal production.
Mr* Thorp said he knew this but that it would establish a new principal which
would certainly have ramifications throughout the world, furthermore, he
thought it was worth noting this was a considerable use of Canadian energy
and labor.
Mr. Wrong said of course this was & program designed definitely to
increase foreign purchasing power. He then said that this matter could not
be taken up in Parliament for at least a month sad that certainly before then
Towers or some other official would discuss it with the appropriate American
officials* fie promised to telephone Ottawa and report this conversation to
them. Mr. Thorp reiterated that we felt very strongly on the matter and
would look forward to such conversations*