600.0031 World Program/135: Telegram

The Ambassador in France (Bullitt) to the Secretary of State

778. Continuing my 777. One scheme which he had very much in his mind was the following:

He thought there was a very great opportunity at the present time for the reduction of quotas and abolition of barriers to international trade; but only on condition that certain monetary and financial questions could be solved at the same time. He had in mind as a possibility that the United States might deposit a large quantity of its stock of gold in the hands of the Bank for International Settlements at Basel which could use it as a basis on which to reorganize the monetary systems of Europe. The United States would still retain control of the gold and get interest and there would be no risk.

He said that he had mentioned this particular scheme only as an example. He then went on to develop the details of another scheme. He would like to see the United States for example purchase cattle from Yugoslavia paying gold for the cattle and disposing of the cattle in areas which at the moment needed cattle. I told him that I thought this seemed somewhat chimerical and he replied that he had mentioned the thought merely to give me an example of the many different sorts of ideas that were in his mind.

You will find Van Zeeland extremely anxious to hear any concrete ideas that our Government may have developed and ready to give an honest opinion as to the practicability of any suggestions; but I venture [Page 679] to remind the Department once more that Belgium at the present time feels totally dependent on Great Britain and that the British point of view will bulk large in Van Zeeland’s thoughts.

Bullitt