Foreign Relations of the United States: Diplomatic Papers, 1942, The American Republics, Volume V

710.Consultation 3/363: Telegram

The American Representative (Welles) to the Secretary of State

Rio de Janeiro, January 18, 1942—7 p.m.
[Received 10:50 p.m.]

22. Department’s 24, January 17, 10 p.m.⁶⁸ For Secretary Morgenthau⁶⁹ from Welles. There is appended a copy of a new draft of a resolution which includes I believe such changes in the wording of the earlier draft as may satisfactorily meet the points raised in your cables to me.

You will note that in the appended draft all references to nations other than the American Republics are omitted. Though it is to be hoped that the meeting of Finance Ministers⁷⁰ referred to in the appended draft of the resolution would include, when called, representatives of other countries and may so be interpreted by some there is nothing in the resolution which commits the United States Government to a meeting which need necessarily include the Finance Ministers of nations other than the American Republics. There will be of course ample time later for sounding out other governments and their participation in the Conference assured before the calling of the Conference referred to in the resolution.

Since the absolute deadline must be Monday noon Rio time, January 19, I would appreciate it if you could have your reply and possibly suggested changes telephoned instead of cabled. White⁷¹ will remain in his room at Copacabana Palace Monday morning waiting to receive telephone message from Washington. Please note Rio time is about 2 hours earlier than Washington time.

Resolution on the Stabilization Fund of the United and Associated Nations

Whereas

1. A more effective mobilization and utilization of foreign exchange resources of [apparent omission] would be of assistance in the struggle against aggression and would contribute to the realization of the economic objectives set forth at the First and Second Meetings of the Ministers of Foreign Affairs of the American Republics at Panama and Habana; and

2. The American Republics which are combined in a common effort to maintain their political and economic independence can cooperate in the creation of an organization to promote stability in foreign exchange rates, encourage the international movement of productive capital, facilitate the reduction of artificial and discriminatory barriers to the movement of goods, help correct the maldistribution of gold, strengthen monetary systems, and facilitate the settlement of public and private international debts and the maintenance of monetary policies that avoid serious inflation or deflation;

Resolves

1. To recommend that the Governments of the American Republics participate in a special conference of Ministers of Finance or their representatives to be called for the purpose of considering the establishment of an international stabilization fund;

2. To recommend that the conference in considering the establishment of such a fund shall formulate the plan of organization, powers and resources necessary to the proper functioning of the fund, and shall determine the conditions requisite to participation in the fund, and shall propose principles to guide the fund in its operation.

Welles

68. Not printed; this telegram concerned international monetary stabilization.
69. Henry Morgenthau, Jr., Secretary of the Treasury.
70. For correspondence on this meeting, see pp. 58 ff.
71. Harry Dexter White, Assistant to the Secretary of the Treasury and Director of Monetary Research of the Treasury Department.