Foreign Relations of the United States, 1964–1968, Volume XV, Germany and Berlin

209. Telegram From the Embassy in Germany to the Department of State¹

Bonn, April 14, 1967, 1755Z.

12257. Department pass Treasury. Subject: International liquidity. Ref: State 175047.²

1. Reftel, which requests me to make an oral presentation to Chancellor Kiesinger on the possible adverse effect of the ECE Finance Ministers’ meeting, scheduled for April 17–18, on the ultimate solution of the international liquidity problem, has been forwarded to me in Berlin where I am making a scheduled visit. I have been in touch with Embassy Bonn, who advise that Kiesinger is not available under normal circumstances today and tomorrow, since he is campaigning in Schleswig-Holstein.

2. Under the circumstances, it would appear to me to be putting undue pressure to seek an extraordinary meeting with the Chancellor, say out of Bonn, wherever he might be in his campaign, in light of the fact that this same subject has been raised with him in the President’s letter,³ and in his meeting with the Vice President,⁴ as well as in two letters from Fowler to Minister Schiller⁵ and by Walter Heller personally with Schiller and Schoellhorn on April 10⁶ in behalf of Fowler. Both in his reply to the President’s letter⁷ and to the Vice President, Kiesinger assured us of his “full cooperation,” even though neither he nor Schiller in his discussions with Heller, indicated what the precise German position would be. The fact that Schiller observed to Heller, as reported in Embtel 12111,⁸ that Germany expected to be a buffer between France and the U.S. on this issue, would indicate that the Germans have no intention of capitulating to the French during the ECE meeting.

3. As a consequence I propose to send the following letter to the Chancellor today. We have been assured that it will reach him well in advance of the departure of Schiller and Strauss for the meeting.

4. Following is text of letter:

Begin Text

Bonn/Bad Godesberg

April 14, 1967

His Excellency Dr. H.C. Kurt Georg Kiesinger

Chancellor of the Federal Republic of Germany

Bonn

Dear Mr. Chancellor:

I have been asked to bring to your attention the concern of the United States Government over current developments in the negotiations on plans to reform the international monetary system. In particular this concern relates to the possible outcome of the April 17–18 meeting of the Finance Ministers of the European Economic Community.

Our fear is that the Ministers will at that meeting adopt a common position in international liquidity negotiations favoring a general drawing rights proposal, based on inadequately defined and limited common ground, which would fall far short of what is needed. Such a result would risk failure of the four-year effort to reform the international monetary system, with grave consequence for the future evolution of economic relationships between Europe and America.

You will recall, of course, the interest of the President in a successful outcome of these negotiations by September of this year, which he expressed in his letter to you of March 11. The Vice President also told you of our hope that your government would extend its active cooperation in bringing about agreement on an effective plan for reform of the monetary system.

Secretary of the Treasury Fowler has written two letters to Economics Minister Schiller about these matters. I attach copies of these letters for your ready reference. In his letters Secretary Fowler explains in some detail our objectives in the negotiations, and our concern at the trend of recent developments. In particular the possible outcome of the forthcoming meeting of the Finance Ministers of the European Economic Community.

I have been instructed to tell you that the viewpoints expressed in Secretary Fowler’s letters reflect the political policy of the United States Government at the highest level. I hope therefore that you will review personally the issues and positions presented in Secretary Fowler’s letters, so that they may be given appropriate consideration in your discussions with your Cabinet colleagues prior to the meeting.

Sincerely yours,

George C. McGhee

American Ambassador

End of text.

McGhee

1. Source: Department of State, Central Files,POL GER W–US. Confidential; Priority. Repeated to Berlin for the Ambassador.
2. Dated April 13. (Ibid.)
3. See Foreign Relations, 1964–1968, vol. XIII, Document 241.
4. See footnote 2, Document 208.
5. Transmitted in telegram 171594 to Bonn, April 11, and telegram 175048 to Bonn, April 14. (Both in Department of State, Central Files, POL GER W–US)
6. Not found.
7. Dated April 4. The text was transmitted to Vice President Humphrey in telegram Tovip 34, April 4. (Department of State, Central Files, POL GER W–US)
8. Dated April 12. (Ibid., ORG 7 WH)