560.AL/5–2549: Telegram
The Chairman of the United States Delegation (Willoughby) to the Secretary of State
priority
149. For State and Treasury.
1. We were notified May 19 that South Africa would discuss new import restrictions here May 30 and 31.
2. Upon receipt Pretoria’s 54, May 21 and 56, May 231 to Department indicating South Africa had reached decision and supplied text to press May 20 or earlier for future release, submitted both cables to South Africa here Tuesday for coment. They confirmed paragraphs 1 and 2 of Pretoria’s 54, but denied any knowledge of remaining paragraphs. Note also from London’s 2022, May 24 to Department that on May 23, British then conferring with South Africa also said no definite South African position had emerged.
3. London newspapers May 23 reported fully South African announcement May 23 confirming Pretoria’s cables.
4. Fund representatives here yesterday recommended that Fund comment fully on all aspects since there is now official South African plan. Conferred yesterday with Canadian who will seek to reach Rasminsky at sea to have him firm Parkinson’s position in Fund.2
5. Canadian also revealed (a) that South African importers have already exhausted entire balance gold loan by sterling orders confirmed and committed through banking system, leaving South Africa with zero sterling reserves, (b) UK-South African gold loan agreement of 1948 committed UK to purchase specified quantities South African fruits and wines for several years, but this commitment to expire with total repayment loan and (c) UK drafted bill to restrict capital movements to South Africa last year, and are now threatening to resurrect and enact bill. These provide UK with bargaining power.
[Page 688]6. Announced plan apparently still lumps continental currencies with dollars. However, possible that London negotiations involve revision South African payments agreements to permit treating soft currencies as sterling.
7. Belgium probably will support US position and seek neutralize Netherlands which heretofore supporting British.
8. London please comment on paragraphs 5(b) and 6 above.
Sent Department 149; repeated London 11, Pretoria 1.
- Pretoria telegram 54 reported that there had been a premature news release about import controls. Pretoria telegram 56 informed the Department that the Acting Minister for Economic Affairs had presented a statement in Parliament about new import controls. (Annecy Conference File, Lot 57D284, Box 132)↩
- Louis Rasminsky, a Canadian national, was an elected Executive Director of the International Monetary Fund. Joseph F. Parkinson, also from Canada, was his alternate.↩