OmOXM CABLKOTa*
June 8, 1940
maim
so. M8/40    eomnmiat fob oiotsm
Reference your 436/40 Indicating that your pWWH
and yourselves desire to arrange for transfer of accounts now
la your name with us to accounts In asm of your gore resent* We
hawe now been requested and authorised ay Secretary of Treasury
to open and aalntela accounts for British Ctovernaent as requested
by such government and ire are prepared to do so under such
authority.   We suggest
(1)   That British Government cable the following te
our government through American Sabassy in London:
(a) Request and Instruct leas that we open aad
maintain accounts In nane of British Government
aad transfer thereto the gold and dollar
bale noes now la designated accounts with urn
In name of Bank of England.
(b) Instructions as to who is authorized, la behalf
of British Government, to give Instructions to
ma regarding paymeats and withdrawals from, and
otherwise ia relation tot such accounts.
Presumably these instructions would never
emergency authority referred to in your 517/40.
<c) Confiraation th*t such sold and dollar balances
are the property of British ftonnMnt*
(2) That on cable to federal Heseree BaA* of Sow T0rk your
instructions to twice transfers ae in (l) (a).
(3) That British Aabassador in tftahiagtoa, by letter to Secretary
of State, confira all of foregoing, *nc! certify the
legality «ad validity thereof*
*e are prepared upon receipt of request, instructions,
and confirmations as indicated in (1) and (?) above to oaks the
transfers to accounts in naao of British Oovernaent, and to
accept instructions given as authorised in behalf of British
Government.   Letter of British Ambassador referred to in (3)
could folio* in due course.   Plep.se advise British Government
of term and conditions on which we earmark gold aad hold gold
under earmark as sot forth in our letters to you dated Deceaser
1* 193?, aad April 11, 1940.
3-proul
Federal Heserve Soak of lew York.
BO* Foot
Gable AJivision