CABINET MEETING, FRIDAY, JUNE 25, 1948
10:00
THE PRESIDENT
Asked Defense to give report on German currency squabble with Russia (2 sets of currency - 1 Russian 1 Western Powers
FORRESTAL
Not as serious as indicated in press.
ROYAL [ROYALL]
Same report - but maintains it is still serious.
THE PRESIDENT
Stated his reactions to Dewey nomination. Had witnessed it on television set. Remarked on coldness of reception given Dewey by the Convention.
COMMERCE
Asked for discussion on merits of issuing license to export equipment and materials to Russia in exchange for manganese and other critical defense items. If licenses are issued we will have strong criticism from the public.
FORRESTAL
The difficulty is that we have to consider dangers of an economic warfare - especially in connection with the revitalization of Western Europe and the danger of cutting off Russian exports to Europe if we cut Russia off completely.
LOVETT
The State Department looks at it from the basis of our own national security - the need for manganese is vital but secondary.
THE PRESIDENT
Last March told Harriman to close down on shipments to Russia which would contribute to creation of Russian war machine. Advised that before change in policy is contemplated all departments should be asked for opinion.
BRANNAN (Agriculture - 1st meeting?)
Sees problem in surplus of potatoes. Transportation and consumption will not absorb crop in Southern Virginia. It is the intention of Dept. to beat opposition to punch by issuing press release setting forth the condition they cannot be shipped to Europe. Will not stand long shipment without spoiling.
FLEMING
Flood still serious in Columbia River Valley. Total damage cannot be computed until waters subside to normal.
10:35