800.515/931c: Telegram

The Secretary of State to the Ambassador in the Soviet Union ( Harriman )

85. 1. Currency arrangements that will prevail during the invasion and occupation of Germany have been discussed by the Combined Civil Affairs Committee consisting of representatives of the American and British State, Treasury and War Departments.

2. The following are the current currency proposals:

(a)
The military money will be known as the “M” mark and a large “M” will be superimposed in the background of the note of each denomination.
(b)
There will be eight denominations of notes, ranging from 1,000 marks to 1 mark.
(c)
There will be two sizes of notes, the smaller ones being one half or three quarters the size of the American dollar bill; the larger ones being exactly the size of the current American dollar bill. In addition to the denominations the wording to appear on the notes (all wording will be in German) will consist of “issued in Germany” and “series 1944” and it is felt expedient that there should appear on the note some such expression as “Allied Military Authority”.
(d)
The present intention is that all notes shall carry serial numbers although it is possible that the smallest denominations may be issued without serial numbers in order to expedite the printing program.

3. The exchange rate that will prevail for the M–mark or its relationship to the Reichsmark has not been decided.

4. For some time the Treasury Department has worked on this program and has developed preliminary designs for the note, as well as taking over the facilities of plants to produce the currency and laying in a stock of bank-note paper. A first order of six billion M–marks, comprising roughly 100 million pieces, is called for by present Treasury plans.

5. The British Government has been kept advised of the foregoing by the British Treasury. There have been held preliminary discussions with representatives of the Russian Embassy here and we have requested that they advise their Government that the military authorities here have imposed upon the Treasury a time limit which does not permit of great delay. The receipt of their comments before the completion of the plates has been hoped for.

6. That you should review this matter in its entirety with the appropriate Russian authorities and attempt to obtain their immediate comments and suggestions is considered desirable. Both the British and American Governments are desirous of having Russian cooperation and concurrence in this matter and any suggestions that the Russians may have will be taken into account if they reach us in time so as not to delay the printing program unduly. In as much as the dies will soon be complete you should treat this matter as one of urgency and advise the Russians that you would appreciate receiving their reply at the earliest possible date.

7. It is also desired to obtain any possible information regarding the currency the Soviet authorities expect to use when they enter Germany.

Hull