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area countries will be on the basis of dividing these accumulated balances into three categories (a) balances to be released at once and convertible into any currency for current transactions, (b) balances to be similarly released by installments over a period of years beginning in 1951, and (c) balances to be adjusted as a contribution to the settlement of war and postwar indebtedness and in recognition of the benefits which the countries concerned might be expected to gain from such a settlement. The Government of the United Kingdom will make every endeavor to secure the early completion of these arrangements.

(ii) In consideration of the fact that an important purpose of the present line of credit is to promote the development of multilateral trade and facilitate its early resumption on a non-discriminatory basis, the Government of the United Kingdom agrees that any sterling balances released or otherwise available for current payments will, not later than one year after the effective date of this Agreement unless in special cases a later date is agreed upon after consultation, be freely available for current transactions in any currency area without discrimination.

11. Definitions.

For the purposes of this Agreement:

(i) The term "current transactions" shall have the meaning prescribed in Article XIX (i) of the Articles of Agreement of the International Monetary Fund.

(ii) The term "sterling area" means the United Kingdom and the other territories declared by the Defence (Finance) (Definition of Sterling Area) (No. 2) Order, 1944, to be included in the sterling area, namely "the following territories excluding Canada and Newfoundland, that is to say—

(a) any Dominion,

(b) any other part of His Majesty's dominions,

(c) any territory in respect of which a mandate on behalf of the League of Nations has been accepted by His Majesty and is being exercised by His Majesty's Government in the United Kingdom or in any Dominion,

(d) any British protectorate or protected State,

(e) Egypt, the Anglo-Egyptian Sudan and Iraq, (f) Iceland and the Faroe Islands."

12. Consultation on Agreement. Either government shall be entitled to approach the other for a reconsideration of any of the provisions of this Agreement, if in its opinion the prevailing conditions of international exchange justify such reconsideration, with a view to agreeing upon modifications for presentation to their respective legislatures.

Signed in duplicate at Washington, District of Columbia, this 6th day of December, 1945.

For the Government of the United States of America:

FRED M. VINSON

Secretary of the Treasury of the United
States of America

For the Government of the United Kingdom of Great Britain
and Northern Ireland:

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I have the honor to inform you that on July 15, 1946 there were made available by an Act of Congress of the United States, approved by the President, the funds necessary to extend to the Government of the United Kingdom the line of credit in accordance with the provisions of the Financial Agreement of December 6, 1945 between the Governments of the United States and the United Kingdom.

The effective date of the Agreement, pursuant to Section 1 thereof, is therefore July 15, 1946.

May I request that any communications concerning the operation of the Agreement be addressed to the Secretary of the Treasury and that a copy of such communications be sent to the Secretary of State.

Accept, Excellency, the renewed assurances of my highest consideration.

DEAN ACHESON Acting Secretary of State

His Excellency

The Right Honorable

THE LORD INVERCHAPEL, P.C., G.C.M.G.,

60 Stat. 535.

British Ambassador.

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I have the honour to refer to your note of July 15th, 1946, in which you were so good as to inform me that on July 15th, 1946 there were made available by an Act of Congress of the United States, approved by the President, the funds necessary to extend to His Majesty's Government in the United Kingdom the line of credit in accordance with the provisions of the Financial Agreement of December 6th, 1945, between the Governments of the United States and the United Kingdom, and that the effective date of the Agreement, pursuant to Section 1 thereof, is July 15, 1946.

2. I have noted your request that any communications concerning the operation of this Agreement should be addressed to the Secretary of the Treasury and that a copy of such communications should be sent to Your Excellency.

Accept, Excellency, the renewed assurances of my highest consideration. INVERCHAPEL

His Excellency

The Honourable James F. Byrnes,

Secretary of State of the United States,

Washington, D. C.

POSITION OF JEWS IN EUROPE AND PALESTINE

Exchange of notes at Washington December 10, 1945

Entered into force December 10, 1945

Terminated April 20, 19461

59 Stat. 1729; Executive Agreement Series 491

The Secretary of State to the British Ambassador

DEPARTMENT OF STATE
WASHINGTON

December 10, 1945

EXCELLENCY:

I have the honor to inform Your Excellency, with reference to our conversations on the subject, that the Government of the United States agrees to constitute, in cooperation with the Government of the United Kingdom, a joint Anglo-American Committee of Inquiry with the following terms of reference.

1. To examine political, economic and social conditions in Palestine as they bear upon the problem of Jewish immigration and settlement therein and the well-being of the peoples now living therein;

2. To examine the position of the Jews in those countries in Europe where they have been the victims of Nazi and Fascist persecution, and the practical measures taken or contemplated to be taken in those countries to enable them to live free from discrimination and oppression and to make estimates of those who wish or will be impelled by their conditions to migrate to Palestine or other countries outside Europe;

3. To hear the views of competent witnesses and to consult representative Arabs and Jews on the problems of Palestine as such problems are affected by conditions subject to examination under paragraphs 1 and 2 above and by other relevant facts and circumstances, and to make recommendations to the Governments of the United States and of the United Kingdom for ad interim handling of these problems as well as for their permanent solution; and

4. To make such other recommendations to the Governments of the United States and of the United Kingdom as may be necessary to meet

1 Date of submission of Committee report.

the immediate needs arising from conditions subject to examination under paragraph 2 above, by remedial action in the European countries in question or by the provision of facilities for emigration to and settlement in countries outside Europe.

The Committee should be composed of six nationals of the United States, appointed by the Government of the United States, and six nationals of the United Kingdom, appointed by the Government of the United Kingdom, and shall operate under a rotating chairmanship.

The Governments of the United States and of the United Kingdom shall urge on the Committee the need for the utmost expedition in dealing with the subjects committed to it for investigation and shall request that they may be furnished with its report within 120 days of the inception of the inquiry.

The procedure of the Committee shall be determined by the Committee itself and it will be open to it, if it thinks fit, to deal simultaneously through the medium of subcommittees, with any of the subjects entrusted to its consideration.

Each Government shall be responsible for compensating its own members of the Committee and other personnel selected by it and for paying such other expenses as are not susceptible of being jointly shared by the two Governments. All other expenses of the Committee shall be borne jointly by both Governments in equal proportions.

Accept, Excellency, the renewed assurances of my highest consideration. JAMES F. BYRNES

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I have the honour, under instructions from His Majesty's Principal Secretary of State for Foreign Affairs, to inform Your Excellency that His Majesty's Government in the United Kingdom are in agreement with the terms of your note of the 10th December about the Joint Anglo-American

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