189. Memorandum From President Nixon 1

MEMORANDUM FOR

  • Honorable John Connally
  • Honorable Arthur Burns
  • Honorable George Shultz
  • Honorable Paul McCracken
  • Honorable Peter Peterson
  • Honorable Peter Flanigan

After our discussion in the Quadriad meeting October 29, 1971,2 I believe it is essential that there be no further speculation within the Administration which might get into the press or into foreign circles with regard to changing the price of gold or a return to some form of convertibility. Our planning at this time should proceed on the assumption that we are not going to move in that direction.3

Richard Nixon
  1. 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.”
  2. The Quadriad meeting was on October 28; see Document 187. President Nixon met again with Arthur Burns from 11:01 to 11:30 a.m. on October 29 and with George Shultz from 4:15 to 5:16 p.m., but there was no meeting of the Quadriad. (National Archives, Nixon Presidential Materials, White House Central Files, President’s Daily Diary) Connally was out of Washington on his Asian trip.
  3. In an undated memorandum from Shultz to President Nixon, Shultz suggested four points he and Connally thought the President should make at the Quadriad: “you have thought and read a great deal recently about international monetary matters; you continue to feel that it is a mistake to make a change in the price of gold and do not want discussions going on that would lead people to think the President might recommend a change; you also will not entertain suggestions for even limited forms of convertibility; you want work to proceed on the assumption of these two conditions: no convertibility, no change in the price of gold.” (Ibid., Federal Government Organizations, Treasury 11/1/71-2/29/72, Box 2) Shultz’ memorandum is stamped “The President has seen.”