https://declassified.library.utoronto.ca/files/original/92da40293defd34633c73dadaf6e008f.pdf 334aff56889be0c11c4b833c35d1cb77 PDF Text Text Docume nt dis clos ed under the Access to Inform ation Act Docume nt divulgue e n ve rtu de la Lol s ur I'acces a I'Inform ation DEPARTM ENT O F EXTERNAL AFFAIR S, CANADA. NUMBERED LETTER FRO M : Th® C anadian Em bassy, W ashington, D.C*. .S e curity:................................ .£$•.' hjtnimn d FRO M : THE UNDER-SECRETARY O F STATE FO R TO : EXTERNAL AFFAIR S, O TTAW A _____At* O ur l etter N o* 2372 of D ecem ber 11, 1-953;................ ....................................... S e ttle me nt of Adra noe s In Korea n S ubje ct:.. •ourre ncy* to 'Ca na dia n 'Force s '............. Re fe re nce : (DUPLICATE) January 15, 1954 D ate: Enclos ure s : Air or S urfa ce Ma il: P os t File No: Otta wa File No. 10818-A-40 Re fe re nce s ,1-Uy We e nclos e the following Ite ms re la ting to the Unite d S ta te s s e ttle me nt with the Re publlo of Kore a for dra wings of Korea n curre ncy: (a) copy of l etter dated the 8th of January, 1954, from M r. S. K, Shultz, C hief, Foreign Financial Affairs, U nited States D epartm ent of the Arm y; (b) copy of l etter dated the 7th of January, 1954, from M r. H ow r.rd Sm ith, C hief, Korean Eoonom io Affairs, D epartm ent of State; (o) photostatio copy of portion of U .N . Funding R eport dated the 30th of N ovem ber, 1953. From the enolosed correspondence you w i l lnote that U nited States offi ci al s exexoised extrem e caution in replying to our request for detailed inform ation about the m ethod used in calculating the am ount of the lum p-sum settlem ent w hich the U nited States m ade for w on draw ings to February 6, 1953. I ti s clear that these offi ci al s, having experience great di ffi cul ti es in conducting negotiations w ith the RO K in the past, and anticipating further di ffi cul ti es in the future, w ant to avoid doing anything w hich m ight queer their own pitoh. Accordingly, they are taking care to see that no one Will1 be able to quote them to the Koreans i n support of the contention that the U nited states settlem ent Involved the use of any w on-dollar conversion rate substantially in excess of 6,000 to one. Korean offi ci al s have never been com pelled to m ake suoh an adm ission openly, and they w ould strongly resist doing so. 2. Inte rna l Circula tion M r. Shultz presents the offi ci alU nited States explanation of the settlem ent in these w ords: "Although efforts w ere m ade to settle at rates considered equitable in the l i ght of attendant eoonom io conditions, these settlem ents in effect resulted i n rates approxim ating the mi l i tary conversion rates prevailing during the periods i n w hich the hw an w ere advanced." 3. Dis tribution to P os ts 4. M r. Sm ith echoed the sam e story, although he w as so frank as to adm it that "After going over these figures, I concluded that i tit, not possible to dem onstrate arithm etically that w e settled fcr the w on draw ings at the rates existing at the tim e the w on w as w ithdraw n." Ext. 181C (Rev. 2/52) 000461 j �Document disclosed underthe Access to Information Document d'n/ulgue en veitu de la Loi sur I'accts a I'lnjo GONilD^NTlAL - 2 - D espite this di ffi cul ty in getting his figures to support the offi ci alstory ful l y, Kr, Sm ith carefully avoided, both in his l etter and w hen pressed verbally, any adm ission that a settlem ent rate exceeding 6,000 to 1 had been applied to draw ings in the period from D ecem ber 15, 1952, to February 6, 1953, The l atter explanation seem s to be the only one w hich ful l yf i t s the facts, but apparently i ti s definitely buried in the. secret notes of the U nited States negotiators, and we m ay be sure that i tw i l lnot be m ade available to us form ally at thi s tim e, 5, From our l etter N o. 22 of January 7, 1954, you wi l lhave noted that the UN Com m and in Korea i s preparing a draft schem e w hich suggests three se arate agreem ents w ith Korea, of w hich one w ould be a financial agreem ent establishing general principles for repaym ent of hw an draw ings. I thas occurred to us, as i tno doubt has to you,that i tm ight be advisable to relate the C anadian settlem ent to w hatever evolves from the UNC proposal. The Em bassy, i � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Identifier An unambiguous reference to the resource within a given context CDKW00676 Title A name given to the resource CDKW00676 Source A related resource from which the described resource is derived "Korean War - Reaction by Canada," RG24-B-1-a, vol. 20811, 7-10-5, part 3, Library and Archives Canada (LAC). Rights Information about rights held in and over the resource Canadian Crown Subject The topic of the resource Korean War Publisher An entity responsible for making the resource available Canada Declassified Type The nature or genre of the resource Text Format The file format, physical medium, or dimensions of the resource PDF Language A language of the resource en