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NATIONAL ARCHIVES AND RECORDS SERVICE CABINET MEETING, FRIDAY, JUNE 25, 1948 10:00 THE PRESIDENT Asked Defense to give report on German currency squabble with Russia (2 sets of currency - l Russian 1 Western Powers). FORRESTAL Not as serious as indicated in press. ROYAL Same report - but maintains it is still serious. THE PRESIDENT Stated his reactions to Dewey nomination. Had witnessed it on television set. Remarked on coldness of reception given Dewey by the Convention. COMMERCE Asked for discussion on merits of issuing license to export equipment and materials to Russia in exchange for manganese and other critical defense items. If licenses are issued we will have strong criti- cism from the public. FORRESTAL The difficulty is that we have to consider dangers of an economic warfare - especially in connection with the revitalization of Western Europe and the danger of cutting off Russian exports to Europe if we cut Russia off completely. LOVETT The State Department looks at it from the basis of our own national security - the need for manganese is vital but secondary. THE PRESIDENT Last March told Harriman to close down on shipments to Russia which