845.515/7–1544
The British Chargé (Campbell) to the Secretary of State
Ref. 430/ – /44
Sir: I have the honour to call your attention to the agreement signed on June 8th, 1944 between the Foreign Economic Administration on behalf of the Government of the United States and the Agent General for India on behalf of the Government of India, whereby the United States Government undertakes to make available to the Government of India under the Act of Congress of the United States of March 11th, 1941, as amended, from stocks of United States Treasury silver, such amounts of silver totalling not in excess of 100,000,000 [Page 270] ounces as the Government of India may request from time to time prior to the end of the existing emergency as determined by the President of the United States.
The purpose of this agreement is to implement the anti-inflation policy of the Government of India, which policy, it has been agreed, is essential to the effective continuance of the war effort.
In connection with the obligations of His Majesty’s Government in respect of this agreement, I would further call your attention to the letter which His Majesty’s Ambassador addressed to you, dated March 21st, 1944, and your reply to that letter dated April 7th, 1944.
Inasmuch as it has now been agreed that an exchange of notes would constitute a satisfactory recognition of the obligations of His Majesty’s Government in respect of this agreement, I have the honour to inform you that, in the event of the Government of India failing to return to the United States Treasury any part of the silver made available to it by the United States Government under the terms of this agreement, His Majesty’s Government in the United Kingdom will take such steps as may be necessary to effect the delivery to the United States Treasury of such amounts of silver and within such a period as is required for the implementation of this agreement.
His Majesty’s Government would be glad to have your assurance that the Government of the United States would recognise that should His Majesty’s Government in the United Kingdom be called upon at any time to play any part in fulfilling the Government of India’s agreement with the Government of the United States, the action of His Majesty’s Government in the United Kingdom in the matter shall be regarded as discharging pro tanto the obligations of the Government of India.
I have the honour [etc.]