76. Circular Telegram From the Department of State to Certain Diplomatic Missions0

98. Deliver by 9:00 a.m. Local Time. President will transmit special message to Congress on balance payments Noon EDT Thursday, July 18.1

New elements likely draw particular attention abroad include reduction approximately one billion dollars annually in US Government dollar expenditures overseas, imposition of interest equalization tax designed to increase by approximately 1 percent interest cost to foreigners of obtaining capital in United States and $500 million IMF standby arrangement.

Press will receive advance briefing here but with firm understanding that nothing be released before hour of transmission. Full text being [Page 179]airmailed. Maximum dissemination desired. Separate cable will contain guidance for your use in discussions with press and local governments.

[Here follows a summary of the President’s July 18 special message to Congress.]

  1. Source: Department of State, Central Files,FN 12 US. Limited Official Use; Operational Immediate. Drafted by F. L. Widman (Treasury/OIA) and Benjamin Caplan (E/OFE), cleared by Roosa and Springsteen, and approved by Caplan. Sent to all NATO capitals except Ankara, Athens, Lisbon, and Reykjavik, and to Bern, Zurich, Buenos Aires, Canberra, Madrid, Manila, Mexico City, Moscow, New Delhi, Rio de Janeiro, Stockholm, Tokyo, and Vienna.
  2. See Document 29.