DES
This telegram must be 
closely paraphrased be-                      LONDON
fore beng communicated 
to anyone. (D)                                Dated April 3, 1941
 
                                             Rec'd 6:25 p.m.
 
Secretary of State,
 
     Washington.
 
     RUSH.
 
     1309, April 3, 9 p.m. (SECTI0N TWO).
 
     Two.   FINANCIAL AND ECON0MIC MATTERS.
 
     After the Lend-Lease Bill had been passed the question
 
of taking over the British commitments in America with
 
particular emphasis on the resulting credit balances avail-
 
able to the British Treasury was taken up with me by both
 
the Prime Minister and the Chancellor of the Exchequer.
 
I reported these conversations in my cable no. 1060, March
 
18, 8 p.m. forwarded to you and the Secretary of the Treasury
 
which included a letter of Under Secretary Waley addressed
 
to Ben Cohen summarizing the situation from the British
 
point of view. I merely reported the deep concern expressed
 
here without recommendations, and the matter has not since 
 
been brought up by either the Prime Minister or the 
 
Chancellor.  The problem, however, will probably recur as
 
you cannot live here and not be aware of the growing reduction 
 
 
of national income due to a contraction of normal business,
 
the transfer of the energies of the people to war production
 
                                                                  and