U.S. Finances:   207/     X /39
7 739 b
- f^J^*' aaiit$8H embassy*
WASHINQTOH. $• C*,
March 10tht 1989
HO* 086
My Lord,
$n continuation of tny despatch 80* 861 of
the 3rd instant, I have the honour to inform Your
£ordehi;g that the Secretary of the $s?$a«ury has new
Completed his evidence before the Committee on
Coinage, Weights and Measures of the House of
Representatives.   -Perhaps the point of greatest interest
arising was that when asked whether the stabilisation
fond had been used in any manner to finance foreign
governments in purchases of arms or war supplies, Mr*
Korgenthau replied that it never had been so used, and
never would be, directly or indirectly, and went on to
say "J am in hearty sympathy with the Johnson Act and
as long as I am Secretary of the Treasury I will not
permit any nation owing us a dollar to break either the
letter or the spirit of the Johnson Act**   Apart from
this Mr* Morgenthau expressed opposition to putting
gold back into circulation, so long as the rest of the
world's currencies were fluctuating*   Much of the rest
of the hearing was taken up with Questions on the silver
purchase policy, o& which Mr* Morgenthau did not commit
himself one way or the other*
2* Copies of this despatch are being sent to
His Majesty's treasury and the Department of Overseas
Trade.
I have the honour to be,
with the highest respect,
My Lord,
Your Lordship's most obedient,
humble servant,
<3»)   H, C, &EH&SAY
The jRlght Honourable
She Viscount Halifax, K*$«,
etc*.        etc., ete* 1 jfc
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