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Memorandum of Telephone Conversation, by the Director of the Office of European Affairs (Dunn)

Mr. Morgenthau telephoned me this morning to say that he was informing the Soviet Ambassador this afternoon that the duplicate plates for the printing of the Allied military mark to be used in the invasion of Germany would be furnished to the Soviet Government in response to that Government’s request. He asked whether the Department of State was in favor of this action.

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I replied that it was the opinion of this Department from the political point of view, aside from any military considerations or any technical questions or difficulties, that if possible it was highly advisable to have the duplicate plates furnished to the Soviet Government in order that the three Governments and the three Armies entering Germany would be using the same identical currency. The Soviet Government had informed us that if the plates were not furnished to it, that Government would proceed to produce a separate currency for use in Germany. It was our opinion that it would be a pity to lose the great advantage of having one currency used by the three Armies, which itself would indicate a degree of solidarity which was much to be desired not only for the situation in Germany but for its effect on the relations in many other aspects between the Soviet, British, and United States Governments.

Mr. Morgenthau said he was very glad to have this expression of the Department’s views on this question as there might be some technical difficulties arise which would require Treasury to take over, under the President’s War Powers, the plant which is now using the original plates for the production of these marks.

This question has been up between the United States and Soviet Governments since last November, and it has become perfectly clear to us as a result of the exchanges of correspondence on the subject that the Soviet Government is not ready to join in the common use of the same currency unless it receives the duplicate plates from us. In order to convince the Soviet Government of our sincerity in the desire to have the closest collaboration in these military operations against Germany, it becomes essential that we make every effort within our possibility to furnish the plates to that Government.

James Clement Dunn