January 13th 1941, 3 pages.
"1. Call the debit divided by he debit quota* the debit index. A country shall be said to be in default if its debit index is equal to one to three times the size of the sum of the debits of all countries in debit divided by the sum of their debit quotas, whichever is greater....
"2...It is true that when I first entered into this discussion I got cross with Hubert (Henderson) for saying that the scheme must stand or fall by its success in rounding up debits....
"....I have adopted your further proposals for amending the Board. I agree with your major one. I am not quite sure about the other. The economic and industrial functions of the Board are to be dealt with by the committees with appropriate persornel...."
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January 22nd 1942, 3 pages.
"I think the drop allowed of 5% is too large. I should suggest 2%. We have to remember the producers may be frightened of a scheme not involving quotas....
"...I notice that you have made this international. I should very much like it to be Anglo-American....
"...I think if I may say so that there is too much reference to laissez faire in your draft. I think this came in so much in your original paper because you were anxious to show from the point of view of theoretical economics to academic readers how far your proposals were or were not reconcilable with their preconceptions on fundamental theory..."
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February 12th 1942 2 pages.
"....I like to think all three institutions, the Union. the Board and the Materials Control as Anglo-American....
"....My only other major criticism is still of your maximum downward revision of 5%...it strikes me as taking the guts out of the scheme as a measure against the trade cycle.."
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