F.E.C. 117.

Your 499. [1]

Gold for Thailand and France

A firm statement along the lines of your recent telegrams made by
the Ambassador at this morning's meeting. Chinese and Indian
representatives supported. Comments of various members are
summarised as follows:

(a) Chinese representative argued that the action contemplated by
the United States was contrary to paragraph 16 of the policy
decision on interim import-export policies for Japan. (F.E.C.

232/26). He also referred to page 242 of S.C.A.P. summary of non-
military activity of September 1947 and asked why China had been
singled out as an exception. He said that no hasty or premature
steps should be taken, that this issue was an integral part of
Allies general claims against Japan and urged that directive be
withheld.

(b) The Indian representative, whilst without instructions on this
particular issue, said that his Government was most concerned that
the policy-making functions of F.E.C. should be safeguarded and
expressed opinion that directive should be fully considered by the
Commission.

(c) The United Kingdom representative observed that he would
withhold comment for the time being until further evidence as to
tide of the gold had been provided.

(d) The French representative pointed out briefly that this
question did not fall within competence of F.E.C., but was
properly administrative act within competence of S.C.A.P. He said
that any discussions about this matter should be conducted through
diplomatic channels and that the French Government would not
produce evidence of title before F.E.C.

2. We put it to the Chairman that this matter should be urgently
considered by F.E.C. before directive was issued. Chairman replied
that it was his assumption that the United States Government would
give opportunity for further discussion by commission.