159. Circular Telegram From the Department of State to All Posts1

85849. Following statement issued December 16 by Secretary Fowler of the Treasury and William McChesney Martin, Chairman of Federal Reserve Board. “The United States stands firm in its determination to maintain the gold value of the dollar. The central banks of Belgium, Germany, Italy, the Netherlands, Switzerland, and the United Kingdom support this position and continue to participate fully with the United States in policies and practices in support of the price of gold at $35 an ounce. The operation of the London gold market will continue unchanged. The United States authorities and the European central banks concerned endorse this position unanimously and are cooperating in the interest of maintaining the stability of the international monetary system.”

  1. Source: Department of State, Central Files, FN 10. Unclassified. Drafted by F. Lisle Widman (Treasury) on December 16 and approved by Lawrence J. Kennon (E/OMA). The statement in the telegram is identical to a draft statement that had been worked on with the Europeans. This draft is attached to a memorandum from Rostow to the President, December 15, 9:20 p.m., in which Rostow noted that the Europeans were to give their final approval on the morning of December 16 and, if all went well, the statement would be released on the afternoon of December 16. (Ibid.)