Foreign Relations of the United States, 1969–1976, Volume III, Foreign Economic Policy; International Monetary Policy, 1969–1972

4. Memorandum From the President’s Assistant for National Security Affairs (Kissinger) to President Nixon¹

Washington, January 28, 1969.

SUBJECT

• Foreign Policy and U.S. Controls on Foreign Investment

I understand that you have discussed with your domestic economic advisers the removal of our present controls on American investment abroad. I heartily agree with the desirability of removing the controls. However, such a move has vitally important foreign policy implications, especially with respect to our relations with Europe.

Removal of the controls must be planned carefully and, to avoid risking an international monetary crisis, probably must be coupled with new and positive U.S. policy initiatives. I therefore urge you to defer any final decision on this matter until you can review the foreign policy aspects with the NSC, and to instruct your Cabinet officers likewise to defer any decision.² An NSC meeting on international financial matters is now scheduled for late February.³

1. Source: National Archives, Nixon Presidential Materials, NSC Files, Subject Files, Box 309, BOP. Confidential. A handwritten note on the memorandum reads: “Copy given to Bergsten on 2/4/69.” Presumably this memorandum was attached to Document 3.
2. Next to this sentence the President wrote “I agree.”
3. Next to this sentence the President wrote: “I believe Kennedy, et al think we should act sooner-check with McCracken (who is the W.H. man in charge of this area) and set an earlier date for N.S.C. meeting if his check with the principals involved believe it is advisable.” McCracken sent more or less weekly reports to President Nixon on balance-of-payments related matters, even after the President said he no longer needed to see them in early 1970; see Document 38. The NSC meeting was canceled; see Document 16 and footnote 4 thereto.