April 27, 1950
Notes on Conversation with the British Ambassador and Mr. Oliver Franks
1. Sterling Balances. Sir Oliver showed me the notes to the Commonwealth countries. It made these points:
a. The matter of the sterling balances had been made a subject of study - as announced - at the September talks. The interest of holders was then stressed and has been maintained.
b. Since then has been discussed only on basis of facts, amounts, transfers, etc.
c. Balances\' uses have to do with development needs of holders. But unfortunately UK unable to meet needs.
d. Clearly availability of dollar aid related to problems 1, 2, and 3.
e. U.K. before proceeding further wished to see to what extent US prepared to discuss these problems.
f. Only exploratory and no one\'s rights or interests involved. UK will discuss fully with holders without any prejudice
2. Governments informed but not Embassies. UK has now given Commonwealth Embassies copies. Believes excitement quieted.
3. Will Keep J. E. Webb advised of holders\' ideas.
SDA:ma