Page 1384

  THE UNITED STATES AND THE ACTIVATION OF THE
              BRETTON WOODS INSTITUTIONS
800.515/12-1345: Circular telegram
  The Acting Secretary of State to Certain Diplomwtic Missions 1
                                      WASHINGTON, December 13, 1945.
  Please communicate the following to the Government to which you
are accredited in the most expeditious manner possible:
  "In view of the desirability of having the Bretton Woods Agree-
ments 2 signed by December 31, 1945, it is a matter of great importance
that prior to that date those countries which intend to become original
members of the Fund and the Bank comply with the procedures set
forth inthe Articles of Agreement.
  "The US intends to sign the Agreements on Dec 27, 1945,3 and
  1Missions accredited to governments which had signed the Final Act of the
Bretton Woods conference. On December 14, 1945, the Department sent a circular
note which contained the substance of this telegram to the foreign missions,
located in Washington, whose governments had been so informed.
  2 For documentation on these, as well as on Articles of Agreement of the
International Monetary Fund, and the Articles of Agreement of the International
Bank for Reconstruction and Development (hereafter called the Fund and Bank,
respectively) and the conference itself see Foreign Relations, 1944, vol.
ii,
pp. 106 ff. Fror other documents relating to the conference, see Department
of State
Publication no. 2866, Proceedings and Documents of the United Nations Monetary
and Financial Conference, Bretton Woods, New Hampshire, July 1-22. 1944
(2 vols; Washington, Government Printing Office, 1948). The Final Act is
docu-
ment 492 ibid., vol. I, p. 927. Each of the Bretton Woods institutions was
of interest
to the United States: Among the Fund's objectives was the promotion of exchange
stability, the expansion of international trade, the maintenance of high
levels
of employment, and the general promotion of international monetary cooperation.
  ' Actually when the Bretton Woods Act became law on July 31, 1945 (59 Stat.
512), President Truman was "authorized to accept membership for the
United
States" in the Fund and in the Bank.
  At about the same time, Department officials discussed the question as
to when
the United States ought to officially commit itself to membership in the
Fund
and in the Bank. In a memorandum, dated July 28, 1945 to Secretary Byrnes
(800.515 BWA/7-3145) Assistant Secretary Clayton said:
  "Dean Acheson [Assistant Secretary] has called my attention to a problem
in connection with the Bretton Woods agreements. As soon as the President
signs
the bill, the United States will be in a position to accept the agreements.
It seenms
to Dean Acheson and me, however, that it would be better for us not to accept
them until the other principal financial countries are also prepared to sign.
In
this way we would accomplish simultaneous acceptance by members having 6.5%-
of the quotas and the two institutions could be immediately organized.
  "If you and the President believe that this is the proper way to proceed,
I
can request Mr. Acheson to inquire of the principal financial countries when
they
will be able to accept the agreements and invite them to join the United
States
in signing."
  In a handwritten note Secretary Byrnes added: "For the President.
I have
told Clayton to proceed, as suggested" signed J.F.B. The suggestion
was approved
by President Truman on July 31, 1945. This exchange took place at Potsdam,
Germany, at the time of the Berlin Conference.
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