Telegram from Holmes to Secrertary of State Dean Acheson

INCOMING TELEGRAM DEPARTMENT OF STATE-DIVISION OF COMMUNICATIONS AND RECORDS TELEGRAPH BRANCH 16-M N Action: ITP Inio: Control 8984 SS E Rec'd September 22, 1949 P 2:24 p.m. a H FROM: London EUR OLI TO: Secretary of State CIA AAN NO: 3798, September 22, 5 p.m. UFAA DCL 1. Anti-government press describes failure Trades OFD Union Congress general council endorse devaluation DCR (see EMBTEL 3788, September 21) as serious blow to government; says government very worried; and predicts split in offing. These reports should be discounted. 2. Government naturally disconcerted by failure obtain TUC endorsement and Cripps will try obtain support when he meets general council Monday, so that government will not be embarrassed next week's devaluation debate in Parliament. Moreover, general council will also be strongly disposed issue some kind of supporting statement in order prevent Conser- vative taunts government does not even have confidence of its own supporters. 3. More information available to us about TUC general council meeting Monday indicates devaluation eame as shock. Council had taken literally Cripps statements against devaluation, and at annual TUC conference at Bridlington September 5-9 had with great difficulty obtained endorsement of policy of continued restraint on wages in belief cost of living would not rise. Tewson bitter at failure government to keep him in- formed. This may be correct, in sense actual decision to devalue may not have been conveyed, but we know Cripps in June and July disclosed serious drain on reserves to TUC leaders, and must have indicated possible consequences. Moreover, press here has been full devaluation talk for last three months and Tewson should not have been surprised. DECLASSIFIED 4. Real difficulties TRINHAR E. O. 11652, Sec. 3(E) and 5(D) or (B) Dept. of State letter, 7.15.25 ARCHIVES MATIONAL of AND LECE. was RECORDS By NLT- HC NARS Date 9-10-26 SERVICE¹ E INFORMATION COPY