January 3. 1941
Sir:
I have received from the American Embassy in
London a telegram dated December 20, 1940, transmitting
the following text of the note marked "Secret" and
dated December 20, 1940, addressed to the American Embassy
by the Foreign Office:
"With reference to the note number 2452
which the United States Ambassador was so good
as to address to me on the 5th August, I have
the honor to state that His Majesty's Govern-
ment in the United Kingdom are desirous of
opening a further account in their name at the
Federal Reserve Bank of New York,   The Federal
Reserve Bank have suggested that His Majesty's
Government should address their request to the
Secretary of State of the United States, and I
shall accordingly be obliged if you will be kind
enough to forward to the Secretary of State of the
United States for transmission to the Treasury
Department of the United States and to the Federal
Reserve Bank the following requests and instructions:
"(A)
Mr, N. M. Butler, G. V. 0,,
British Charge d'Affaires ad interim.
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"(A)    His Majesty's Government request the
Federal Reserve Bank of New York to open an account
to be entitled. His Britannic Majesty's Government
special account 'B'.
"(B)   His Majesty's Government request the
Federal Reserve Bank to accept on their behalf
instructions of the Bank of England in all matters
relating to this account.
"(C)    His Majesty's Government take this
opportunity to advise the Federal Reserve Bank of
New York that the Bank of England is authorized
to manage and operate any and all accounts In the
name of His Majesty's Government with the Federal
Reserve Bank of New York and in connection therewith
to give all manner of orders, instructions and advices
relating to such account, it being expressly under-
stood that the persons from time to time authorized
by the Bank of England to sign on their behalf
cheques, drafts or other orders, instructions or
advices drawn on or otherwise relating to such
accounts need not be officers or employees of the
Bank of England or persons in England.
"(D)    His Majesty's Government also advise the
Federal Reserve Bank that the Bank of England is
authorized to request the opening of further accounts
in the name of His Majesty's Government and to manage
and operate such accounts in accordance with the
instructions as outlined in paragraph (C) above.
"(E)
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n(E)    His Majesty's Government confirm
that the understanding and agreement with regard
to tested telegrams, cablegrams and radiograms
contained in the following cables:
"Nos.962 and 977, dated August 1 and August 3,
1940, from Federal Reserve Bank of New York to Bank
of England.
MNos.814 and 825, dated August 2 and August 6,
1940, from Bank of England to Federal Reserve Bank
of New York applies to any telegrams, radiograms
and cablegrams relating to any account of His Majesty's
Government with the Federal Reserve Bank of New
York heretofore or hereafter established.    This under-
standing and agreement is to the effect that: (1)
the Federal Reserve Bank of New York is authorized
and requested to accept and act upon any telegram,
cablegram or radiogram, relating to any account in
the name of His Majesty's Government, which is re-
ceived by the Federal Reserve Bank of New York in
the name of the Bank of England and which conforms
to arrangements agreed upon between the Federal
Reserve Bank of New York and the Bank of England
with respect to the authentication of telegrams,
cablegrams and radiograms by the use of test numbers;
and (2) any such telegram, cablegram or radiogram
will be binding upon the Bank of England and His
Majesty's Government and will have the same force
and effect in all respects as a letter signed in
behalf of the Bank of England by its officers who
are authorized to sign correspondence and documents
containing instructions or other communications such
as
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as are contained in the telegram, cablegram
or radiogram.
M(F)    His Majesty's Government confirm that
all funds and other property which may be trans-
ferred, deposited or placed in any account in the
name of His Majesty's Government with the Federal
Reserve Bank of New York will be the funds and
property of His Majesty's Government.
"(G-)    His Majesty's Government advise the
Federal Reserve Bank that the authority extended
to His Britannic Majesty's Ambassador in Washing-
ton and to Mr. J. A. C. Osborne under the 'emergency
signing procedure' does not apply to special account
<B>.
"Further His Majesty's Government advise the
Federal Reserve Bank that in respect of His Britannic
Majesty's Government special account 'A1 and special
account 'B', (and any other accounts to which the
emergency signing procedure might not apply), the
signatories who have authority to sign on behalf
of the Bank of England immediately prior to the time
the emergency signing procedure becomes effective
will thereafter have authority to sign on behalf of
His Majesty's Government.
"The Federal Reserve Bank have requested that
His Majesty's Government's communication to the
Secretary of State of the United States should be
authenticated by the Consul G-eneral of the United
States in London and I shall accordingly be grateful
if the counter-signature by the librarian and keeper
of the papers at the Foreign Office of the signature
of
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of this note may be duly authenticated by
or for the United States Consul G-eneral in
London before this note is transmitted to
the United States Government,
"I have the honour to be, with high
consideration, sir, your obedient servant,
(for the Secretary of State) N. B. Ronald,
certified at the Foreign Office for legalisa-
tion of the foregoing signature rN. B. Ronald*
Stephen Gaselee, Librarian and Keeper of the
Papers for the Secretary of State for Foreign
Affairs, (seal) London",
Accept, Sir, the renewed assurances of my high
consideration.
For