Letter from Thomas V. Commins to Hugh McCann (Washington DC)

Dear McCann,
You will have received our telegram No. 135 asking you whether there have been any recent developments at your end on the question of continuing ECA aid to us. I am afraid that our file shows that we have been somewhat remiss in that we do not appear to have sent you copies of the Note of the 12th February on the subject from the Embassy here and our reply of the 12th March.¹ We took it, however, that the Minister, when he was in Washington, would have made the Ambassador and yourself conversant with these developments, and indeed he may have done so.

When we got the Note of the 12th February from the Embassy the Minister considered, and it was generally agreed, that the best course would be to soft-pedal the question until he visited Washington when he hoped to take the opportunity of discussing the matter direct with Mr. Foster in the hope that without entering into formal negotiations (wherein we would find it very difficult to make a good objective case for further allotments) he might be able to get personal agreement of Mr. Foster to a gradual rather than an immediate cessation of aid and in that way secure an extra 5 or 6 million dollars for the remainder of this fiscal year. In the event however, I understand from the Minister that he did not get the opportunity of touching on this subject at all when he was in Washington and, as we have not heard from either the American Embassy or the Mission here since the dispatch of our Aide Mémoire of 12th March, the whole question is in a state of suspended animation. As matters stand, the ball is of course at the Americans' feet, but time is going on and we must know in the very early future from what source we are going to get the extra dollars which we require for the financing of our programme up to the 30th June. If no further ECA aid is forthcoming we must start negotiations straight away with the British to get the funds we require from the sterling area pool. We would like, however, to know, as precisely as possible, what our chances are from the American end before initiating these discussions. It may be that we should have to resolve the matter by approaching the Embassy here on the subject but before doing so, or deciding on any other line of action, we would like to receive from you any information which you may have or may be able discreetly to secure as to the present intentions or thinking of Washington on this subject.