International Monetary Policy, 1969-1972
169. Telegram From the Department of State to the Embassy in Germany
Source: National Archives, Nixon Presidential Materials, NSC Files, Country Files—Europe, Box 685, Germany, Volume IX 4-8/71. Confidential; Exdis. Drafted and approved by U. Alexis Johnson. Identical cables with this message from President Nixon to certain other heads of government were also sent on the evening of August 15. (Ibid.) The originals of the typed messages sent to the Department of State for transmission are in the National Archives, RG 59, Central Files 1970-73, E 1 US. Circular telegram 149446 to all diplomatic and consular posts, August 16, transmitted a summary of Under Secretary Volcker’s briefing of the Washington diplomatic corps at 10 p.m. on August 15. (Ibid.) The full transcript of Volcker’s briefing was sent to all posts in telegram 156086, August 25. (Ibid.)
170. Memorandum of Conversation
Source: Washington National Records Center, Department of the Treasury, Files of Under Secretary Volcker: FRC 56 79 15, France. Confidential. Drafted on August 23 by Cross and approved by Volcker. The meeting was held at Wychwood House.
171. Memorandum of Conversation
Source: Washington National Records Center, Department of the Treasury, Files of Under Secretary Volcker 1969-1974: FRC 56 79 15, France. Confidential. Drafted by Petrow on August 26 and approved by Volcker. A similar, telegraphic version of the memorandum of conversation was transmitted to the Department of State in telegram 14016 from Paris, August 18. (National Archives, RG 59, Central Files 1970-73, E 1 US) Paris was Volcker’s only stop after the meeting in London (see Document 170). Italian Treasury Minister Ferrari Aggradi found his bypassing of Rome “not acceptable” in view of Italy’s “friendly” approach to U.S. monetary issues and the facts that Italy at that time chaired the EC Council and Aggradi would preside over the EC meeting in Brussels on August 19 to decide the EC’s stance on the New Economic Program. (Telegram 5208 from Rome, August 18; ibid., POL 7 US/VOLCKER) Perhaps in response to these concerns, following the WP-3 and G-10 Deputies meetings in Paris September 2-4 (see footnote 3, Document 173 and Document 174), Volcker continued on to Rome for a “friendly, frank exchange” with Italian officials who “emphasized the feeling that size of adjustment U.S. wants of other countries so large and issues (including political ones of burden sharing, etc.) so complex that reasonable time-span must be allowed for process to work out.” (Telegram 5601 from Rome, September 6; ibid., FN 10 9/1/71) Daane briefed Netherlands official Zijlstra by phone from Paris, and Zijlstra told Ambassador Middendorf he was quite satisfied with the briefing he received. (Ibid., FN 17 US 1/1/71)
173. Memorandum From Deane R. Hinton of the Council on International Economic Policy Staff to the President’s Assistant for International Economic Affairs (Peterson)
Source: National Archives, Nixon Presidential Materials, White House Central Files, FG Federal Government Organizations, Treasury 1/1/71-2/29/72, Box 2. Confidential. A copy was sent to Richard Allen (without attachments).
174. Memorandum From Robert Hormats of the National Security Council Staff to the President’s Assistant for National Security Affairs (Kissinger)
Source: National Archives, Nixon Presidential Materials, NSC Files, Agency Files, Box 218, Council on International Economic Policy. Confidential. Some of the points in this memorandum were summarized in a multi-topic, September 7 memorandum from Jeanne Davis to Kissinger suggesting topics to discuss at a luncheon with Secretary Connally that day. (Ibid., Agency Files, Box 289, Treasury, Volume II, 1971) Hormats prepared another memorandum for Kissinger, September 11, containing many of the same points for Kissinger’s September 14 breakfast meeting with Peterson. (Ibid., Box 218, Council on International Economic Policy)
175. Telegram From the Embassy in the United Kingdom to the Department of State
Source: National Archives, RG 59, Central Files 1970-73, FN 10. Confidential; Limdis; Greenback. Repeated to Bern, Bonn, The Hague, Ottawa, Paris, Rome, Stockholm, Tokyo, USEC, and USOECD.
176. Action Memorandum From the President’s Assistant for National Security Affairs (Kissinger) and the President’s Assistant for International Economic Affairs (Peterson) to President Nixon
Source: National Archives, Nixon Presidential Materials, NSC Files, Agency Files, Box 218, Council on International Economic Policy. Confidential. Attached to a memorandum from Peterson to Kissinger that indicated Peterson had discussed the joint memorandum with Secretary Connally, who found it acceptable. Peterson noted that Connally thought it urgent to decide what to say to the Japanese on Saturday (September 25) and at the IMF, and Peterson wanted to call a meeting on September 22 if the President approved. (Presumably Connally was referring to bilateral meetings with Japanese officials who would be in Washington for the Annual Meeting of the IMF the following week.) Peterson asked Kissinger, if he approved the joint memorandum, to “please sign it now and I will have somebody waiting outside to get it into the President’s office.” Peterson wrote at the bottom: “Sorry to bother you.”
177. Memorandum From the President’s Assistant for International Economic Affairs (Peterson) to President Nixon
Source: National Archives, Nixon Presidential Materials, NSC Files, Agency Files, Box 216, Council of Economic Advisers. Confidential. An accompanying September 22 handwritten note to Kissinger initialed by Kennedy reads: “This is of interest in view of your discussions in the ‘Breakfast Group’.” Also attached are a September 22 note from Jon Huntsman to General Haig indicating Peterson’s memorandum went to the President that day along with a September 22 memorandum from Kissinger to Connally, Shultz, and McCracken transmitting some slightly redrafted proposed remarks for the President that Kissinger thought they should discuss “at our meeting in the morning.” The draft Presidential remarks were intended for President Nixon’s use at a question-and-answer session at the Economic Club of Detroit on September 23; see Public Papers of the Presidents of the United States: Richard M. Nixon, 1971, pp. 965-980. On September 21 Federal Reserve Chairman Burns had also provided the President proposed remarks for Detroit, and underlining by the President indicates that he read them. (National Archives, Nixon Presidential Materials, NSC Files, Agency Files, Box 289, Treasury, Volume II) Burns’ proposed remarks for Detroit were attached to a September 23 memorandum from Kissinger to Connally suggesting he “work some of these thoughts into the speech that is being prepared and which will be discussed at the meeting tomorrow.” Presumably Kissinger was referring to the President’s remarks during his September 29 reception for principals attending the IMF and IBRD Annual Meeting; see Public Papers of the Presidents of the United States: Richard M. Nixon, 1971, pp. 1014-1016.
178. Memorandum From the Executive Secretary of the Department of State (Eliot) to the President’s Assistant for National Security Affairs (Kissinger)
Source: National Archives, RG 59, Central Files 1970-73, E 1 US. Confidential. Drafted by R.J. Smith and L.J. Kennon (E/IFD/OMA) and cleared by S. Weintraub (E/IFD) and Katz (E).
179. Memorandum From the President’s Assistant for International Economic Affairs (Peterson) to the President’s Assistant for National Security Affairs (Kissinger)
Source: National Archives, Nixon Presidential Materials, NSC Files, Agency Files, Box 218, Council on International Economic Policy. Confidential.
180. Memorandum From Lawrence H. Berlin of the Program and Policy Coordination Staff, Agency for International Development, to the Assistant Administrator for Program and Policy Coordination (Stern)
Source: Washington National Records Center, Agency for International Development, Office of the Administrator: FRC 286 75 13, Box 10, PRM 7-2 July 1971-October 1971 FY72. Confidential.
181. Memorandum of Conversation
Source: Washington National Records Center, Department of the Treasury, Files of Under Secretary Volcker: FRC 56 79 15, Germany General. Confidential. Drafted on October 6 by Edward S. Hermberg, Financial Attache at the Embassy in Bonn. The meeting was held at the Department of the Treasury. A September 24 briefing memorandum for the meeting is ibid. The German officials were in Washington for the Annual Meetings of the IMF and the IBRD the following week. On the fringes of those meetings other bilaterals were held, including Connally’s meetings with Chancellor of the Exchequer Anthony Barber on September 25, with Japanese Minister of Finance Mikio Mizuta on September 27, and with Governor of the Bank of England Leslie O’Brien on September 29. Memoranda of these and other conversations are ibid., Secretary’s Memos: FRC 56 74 17, Memcons 1971.
182. Information Memorandum From Robert Hormats of the National Security Council Staff to the President’s Assistant for National Security Affairs (Kissinger)
Source: National Archives, Nixon Presidential Materials, NSC Files, Subject Files, Box 376, President’s Economic Program. Confidential. A stamped notation on the memorandum reads: “HAK has seen.”
183. Letter From the Chairman of the Board of Governors of the Federal Reserve System (Burns) to President Nixon
Source: National Archives, Nixon Presidential Materials, NSC Files, Name Files, Box 810, Arthur Burns. Personal and Confidential. A copy was sent to Secretary Connally. A handwritten note by Haig reads: “Hormats—Went to Pres.”
184. Letter From the President’s Assistant for International Economic Affairs (Peterson) to the Under Secretary of the Treasury for Monetary Affairs (Volcker)
Source: National Archives, Nixon Presidential Materials, White House Central Files, Federal Government Organizations, Treasury 1/1/71-2/29/72, Box 2. No classification marking. Copies were sent to Shultz, Ezra Solomon, and Dam.
185. Memorandum From the President’s Assistant for International Economic Affairs (Peterson) to Secretary of the Treasury Connally
Source: Washington National Records Center, Department of the Treasury, Records of Secretary Shultz: FRC 56 80 1, CIEP—Peterson. Confidential; Eyes Only.
188. Information Memorandum From Robert Hormats of the National Security Council Staff to the President’s Assistant for National Security Affairs (Kissinger)
Source: National Archives, Nixon Presidential Materials, NSC Files, Agency Files, Box 268, Office of Management and Budget. Confidential. Initialed by Haig. A stamped notation on the memorandum reads: “HAK has seen.”
189. Memorandum From President Nixon
Source: National Archives, Nixon Presidential Materials, NSC Files, Agency Files, Box 268, Office of Management and Budget. Secret. Attached to a November 3 note from Shultz to Kissinger that reads, “I know you will be interested in the attached.”
190. Telegram From the Embassy in Germany to the Department of State
Source: National Archives, RG 59, S/S Files: Lot 73 D 153, Morning Summaries. Secret; Immediate; Exdis.
192. Letter From the Vice President of the Deutsche Bundesbank (Emminger) to the Under Secretary of the Treasury for Monetary Affairs (Volcker)
Source: Washington National Records Center, Department of the Treasury, Files of Under Secretary Volcker: FRC 56 79 15, Germany General. Personal. An attached note, dated November 16, reads: “Informed by Mr. Bennett that he has been instructed by Mr. Volcker to give Dr. Emminger an oral answer in Paris this week.” No record of Volcker’s answer was found.
193. Telegram From the Embassy in the United Kingdom to the Department of State
Source: National Archives, RG 59, Central Files 1970-73, FN 17 UK. Confidential; Limdis; Greenback. Repeated to Bern, Bonn, Brussels, The Hague, Ottawa, Paris, Rome, Stockholm, Tokyo, USEC, and USOECD.
194. Memorandum of Conversation
Source: Washington National Records Center, Department of the Treasury, Records of Secretary Shultz: FRC 56 80 1, Subject Files 1971-74. Secret; Nodis. Drafted by Wickel; a typed note indicates the memorandum, which is marked “Draft,” was not cleared by Secretary Connally. The meeting was held at Prime Minister Sato’s residence. Another memorandum records the section of the conversation on economic matters in which Connally, at President Nixon’s behest (see Document 187), asked if Japan would like to join the United States in a joint venture to develop and produce an SST. Connally explained that Boeing had developed a better prototype than either the Concorde or the Soviet TU-14 but Congress had refused to appropriate additional funds for tests and manufacturing and the project had been set aside. The United States would contribute the $1 billion in research data already in hand if Japan was prepared to finance the next stage. Connally noted that the President had discussed this with very few persons and asked the Prime Minister to keep it in strictest confidence. Sato agreed to keep the proposal in confidence, expressed some interest, but said he would have to study the proposal and would respond later. (Ibid.)
195. Information Memorandum From the President’s Assistant for International Economic Affairs (Peterson) to President Nixon
Source: Washington National Records Center, Department of the Treasury, Records of Secretary Shultz: FRC 56 80 1, Council on International Economic Policy—Peterson. Confidential. A stamped note on the memorandum reads: “The President Has Seen.” It is attached to a November 24 memorandum from Huntsman to Secretary Connally informing him that the President suggested Connally receive a copy but that “the President does not endorse any of the views expressed herein.”
196. Telegram From the Embassy in the Netherlands to the Department of State
Source: National Archives, RG 59, S/S Files: Lot 73 D 153, Morning Summaries. Secret. Repeated to Ankara, Athens, Bonn, Brussels, Copenhagen, Lisbon, London, Luxembourg, Oslo, Ottawa, Paris, Reykjavik, Rome, USEC, and USNATO.
197. Telegram From the Embassy in France to the Department of State
Source: National Archives, RG 59, S/S Files: Lot 73 D 153, Morning Summaries. Confidential. Repeated to Bonn, Brussels, The Hague, London, Rome, and USEC.
198. Letter From the Chairman of the Board of Governors of the Federal Reserve System (Burns) to President Nixon
Source: National Archives, Nixon Presidential Materials, NSC Files, Name Files, Box 810, Arthur Burns. No classification marking. Attached to a November 18 memorandum from Hormats to Kissinger recommending Kissinger sign a transmittal memorandum to the President that summarized Burns’ memorandum. On Hormats’ memorandum Kissinger wrote “OBE.”