Page 1391

FORMULATION OF A FOREIGN FINANCIAL PROGRAM:
  POLICY TO HELP WAR-DEVASTATED AND LIBERATED
  COUNTRIES MEET THEIR DOLLAR REQUIREMENTS
  PENDING THE BEGINNING OF LOAN OPERATIONS BY
  THE INTERNATIONAL BANK FOR RECONSTRUCTION
  AND DEVELOPMENT
811.51/6-1545: Circular airgram
The Acting Secretary of State to Certain Diplomatic and Consular
                             Officers
SECRET                     WASHINGTON, June 15, 1945-9: 10 a. m.
  For Chief of Mission. An integrated program of legislation and
implementation to carry out the foreign financial policy of the US
has been adopted in principle by the Staff Committee,1 subject to
further discussions with the Treasury, FEA, War and Navy Depart-
ments.2 A memorandum is being drafted for the President reiterating
our basic policies as 'ioiow~: 1) tle carryiilg out of a lend-lease policy
adequate for the fullest prosecution of the war against the common
enemy, 2) full participation in relief and rehabilitation measures,
3) international cooperation in monetary and exchange management
through the International Monetary Fund, supplemented by bilateral
arrangeoments with the UK and perhaps certain other nations, 4) pub-
lic and private dollar investment in reconstruction and development
abroad during the next decade to the extent of $25 to $30 billion.3
  These policies must be accompanied by parallel programs on full
employment within the US and a sensible commercial policy.
1This refers to the Secretary's Staff Committee, at this time the top policy-
recommending body in the Department of State.
- This was done at a meeting of the Secretary's Staff Committee on June 7
(Minutes of the Secretary's Staff Committee, Lot 122, Box 13147). The Commit-
tee acted on a Staff Committee Document, SC-124, entitled "Foreign Financial
Policy", dated June 5, 1945 (Secretary's Staff Committee Document, Lot
122,
Box 13148).
8 Such an over-all memorandum to the President has not been found, but some
of the subjects named here are discussed in annexes to SC-124. The fourth
item,
regarding reconstruction and development, was described in a draft memorandum
to the President written about June 15 by Emilio G. Collado, Deputy for Finan-
cial Affairs for the Assistant Secretary for Economic Affairs (Clayton) (840.50
UNRRA/6-1545). An abbreviated version of this draft, unsigned and undated,
is printed infra.
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