To resolve the difference of opinion between his own advisers, 
      the President set up, several months ago, an interdepartmental, 
      ministerial Committee, to report to him. Owing to the difference 
      of opinion on this Committee, no report emerged, and sundry meetings 
      of the Committee were adjourned when the time came to call them. 
      This position has gradually become intolerable from our point 
      of view. As the U.S. Treasury takes the line that the existing 
      Presidential directive must be followed until it is superseded, 
      the Lend-Lease Administration is reluctantly and half-heartedly 
      falling in with this by proposing to cut off various items of 
      Lend-Lease, though on nothing like a large enough scale to keep 
      our balances down to the prescribed figure. We have been urging, 
      therefore, on the American Departments concerned that the matter 
      should be brought to a head. During Lord Keynes's recent visit, 
      the State Department and the Lend-Lease Administration agreed 
      that this was the right course. Colonel Llewellin and Sir Ronald 
      Campbell urged Mr. Harry Hopkins to bring it to a head. As a 
      result, the President has instructed Mr. Morgenthau to expedite 
                     the Committee's report.                
 
                                                            
 
 
It may be that tills report is already in the President's 
      hands, in any case, it is absolutely vital to us that he should 
           make the right decision then it reaches him.     
 
                                                            
 
 
    There are several reasons for hoping that he will:-     
 
      (1) The force of our case, to anyone who takes the trouble to 
                 under-stand it, is overwhelming.           
 
                                                            
 
 
(2) Russia's gold and dollar reserves are nearly twice ours 
      and they have no liabilities against them. The Americans are 
      not proposing to tackle the Russians with a similar proposal. 
           We, however, are thought to be easier game.      
 
                                                            
 
 
(3) A change of policy sufficient to keep our balances down 
      to one billion