Memorandum of Conversation with Secretary of State Dean Acheson, Sir Leslie Rowan, and Willard Thorp

TOP SECHE 318 ciny DEPARTMENT OF STATE 139 Memorandum of Conversation May 5. 1950 DATE: SUBJECT: Storling Dalancos Sir Leslio Rowan, The Fritish Rabanoy PARTICIPANTS: The Secretary of State Mr. willard Thorp COPIES TO: Secretary Suyder tar. noffnan, ECA E EUR NEA 1--1493 Sir Lealie Towan called at my request. The request was nade ao a reault of an understanding botaroen Secretary Saydor, tir. norfman and ca that I chould int cam Sir Loslie orally of our afirnt thoughte" on the paper relating to settlonent of the atorling balances and the investment nneda of south and southeast Agia which had boon sent to DO by Sir Oliver Franks. I said to Sir Teslio that ao requeated by Sir Oliver I vas giving to Bir Lealio in Sir Oliver's abeence our firet thoughts on the papor. These vere in reality first thoughts because Secretery Snyder, lfr. Hoffnan and I had all been under such prosoure in the lant fow woeks that se have had only a limited opportunity to considor the paper. The noted that it dealt with tao subjectar the nagotiation of the storling balances and the devolop- mont noeda of south and southoast Asia. In regard to the first, se still thought, as te had in the past, that arrangesents betwoen the British and the holdera of sterling balances toward the and of either scaling doun or converting portiona of the balances or both wore of groat importanco and the nocossary steps toward the goal of convertibility. Tie wore very glad to Innow that the Dritish vore going to naito a detormined effert in this diruction and had groat hopos that they would be successful. On the other subject, the development needs of south and southeast Asia, to agreed with the Dritish on the great strategic importance of this aroa. DECLASSIFIED FACUUS 1950 vot. m Acc 1639 BINCT.VE NARS, Date 2:25:29 TOP SEONE