Foreign Relations of the United States: Diplomatic Papers, 1944, The Near East, South Asia, and Africa, The Far East, Volume V

Files of the Policy Committee: Lot 122

Minutes of the Seventh Meeting of the Department of State Policy Committee⁴⁵

[Extract]

[Washington,] February 2, 1944.

. . . . . . . . . . . . . .

5. Proposal to Lend-Lease 100,000,000 Ounces of Silver to India

Mr. Murray declared that the point at issue is whether the responsibility for the return of the silver should be placed on the British or on the Indian Government. Mr. Murray felt that in view of the great uncertainty in regard to the character of the Government of India five years hence, we are more likely to be reimbursed if the responsibility is placed on the British. Mr. Acheson suggested that if the responsibility is placed on the British alone they will have no claim on the Indians to serve as a basis for collecting from the latter. He felt that both should owe an obligation to the U.S. The Secretary expressed the view that the two Governments should assume the obligation jointly, and the Committee concurred. Mr. Hackworth suggested that this be effected by making the agreement with the Indians and having the British underwrite it.

. . . . . . . . . . . . . .

45. Attended by the Secretary of State (presiding); the Under Secretary of State (Stettinius); Messrs. Berle, Long, Acheson, and Shaw, Assistant Secretaries of State; the Legal Adviser (Hackworth) and the Directors of the several Geographic Offices.