Telegram from Holmes to Secrertary of State Dean Acheson

INCOMING TELEGRAM DEPARTMENT OF STATE-DIVISION OF COMMUNICATIONS AND RECORDS TELEGRAPH BRANCH 4 TRENAR N Action: EUR : ARCHIVES 'NATIONAL SERVICE" RECORDS AND Info : COVERAGE Control 8585 SS E Rec'd Sept. 21, 1949 a 8:54 p.m. H OLI CIA FROM: London AAN UFAA TO: Secretary of State DCL ITP NO: 3788, September 21, 7 p.m. OFD DCR 1. Special meeting TUC General Council yesterday failed produce expected endorsement devaluation as we anticipated (see EMBTEL 3772, September 20, paragraph 1) Meeting merely declared council satisfied Government would not have taken so grave a step without careful assessment all factors", but General Council "needed fuller informa- tion before passing judgment". Meeting with Cripps will be arranged (probably Monday) after which TUC will formulate its position and enter into discussions with Government. Following is our understanding of what happened yesterday's meeting, based on talks with several who were present: 2. Most members General Council favored immediate endorsement of devaluation, expression of confidence in Government, call for all out production, and appeal to unions to follow policy wage restraint. 3. Others took view 1t had been difficult to check general wage demands during past 18 months in face limited increase in cost of living index, and it would be even more difficult in face of further and possibly sharp rise in cost of living. Any union leader who tried restrain his members would be repudiated. It was hypocrisy for General Council to urge unions to withhold wage demands, since no union leader would carry out that policy. 4. A third group, including Tewson, said they did not know enough about need for or consequences of devalua- tion to formulate a policy and should seek further information from Government. DLCLASSIFIED 5. Latter E. O. 11652, Sec. 3(E) and S(D) or (E) Dept. of State letter, 2.15.25 By NLT- He NARS Date 9-10-76 INFORMATION COPY