Heckfield, Basingstoke My dear Hilda,

The P.M. informs me (this is very secret) that he has got in touch with Roosevelt1 who is sending over an emissary to discuss War Debts. The emissary, whose name I dont yet know,2 will arrive about the 21st & spend a week end at Chequers after which the P.M. asks me to be on hand. Meantime I wrote a long letter to Ramsay giving my ideas as to the way the thing should be tackled & he has replied saying “We are in complete agreement”, which is satisfactory. From what I hear Roosevelt has a very long way to travel before he gets to our position, but I think this is the best way of beginning his education. We must try for a moratorium on June 15 to give us time & I should then work for a settlement on the lines of Lausanne. This means (1) a 3 year moratorium (2) a final settlement of all European debts for £150M. to be worked off in bonds to

be marketed from time to time (3) a cancellation of all bonds not marketed say in 15 years time (4) no conditions concerning disarmament, compensation, or tariffs to be attached. It sounds quite hopeless, but so did Lausanne beforehand.