47. Memorandum From Charles Cooper and Helmut Sonnenfeldt of the National Security Council Staff to the President’s Assistant for National Security Affairs (Kissinger)1

SUBJECT

  • Reply to Pompidou’s Letter on Economic and Monetary Issues

The memorandum for your signature to the President at Tab I forwards President Pompidou’s letter of June 252 (Tab B) together with an analysis of its contents and a proposed reply (Tab A).

The Pompidou letter raises important issues that should be the subject of careful study within the Government—among them, means of dealing with the present monetary instability, the USSR’s future role in the international monetary system, and the question of international agricultural agreements. Accordingly, we have drafted the President’s reply to indicate clearly in the first paragraph that it is an interim reply. The incoming letter has been reviewed by Secretary Shultz and his reponse (Tab II) has been incorporated into the reply.3 We will follow up with Treasury and develop positions on the above monetary and agricultural issues.4

Recommendation

That you sign the memorandum to the President at Tab I recommending that he sign the accompanying interim reply to President Pompidou.

  1. Source: National Archives, Nixon Presidential Materials, NSC Files, Box 752, Presidential Correspondence 1969–1974, France Pompidou, 1972. Secret; Sensitive. Sent for action. Neither Cooper nor Sonnenfeldt initialed the memorandum. A notation on the memorandum indicates that it was returned to Cooper and Sonnenfeldt "re Hak’s comments." The tabs are attached but not printed.
  2. Printed as Document 43.
  3. President Pompidou’s letter and a proposed reply were transmitted to Shultz under cover of a July 20 memorandum from Kissinger. (National Archives, Nixon Presidential Materials, NSC Files, Kissinger Office Files, Box 56, Country Files, Europe, French Exchanges [1973–74] [2 of 2]) Shultz’s response, which was sent to Scowcroft under cover of a July 24 memorandum from Ronald Brooks, Shultz’s executive assistant, consisted of a substantial revision of the section on international monetary policy, resulting in a letter that was less agreeable and less accommodating to the French position than the NSC draft. (Ibid., Box 752, Presidential Correspondence File 1969–1974, France Pompidou, 1972)
  4. Kissinger highlighted the final two sentences of this paragraph and wrote: "We will do nothing of the sort without a NSSM—I want to see arguments + [illegible]. But have we put out a NSSM? If not, let’s do so soonest." Kissinger also wrote on the memorandum: "I want to be a shade less negative on agricultural agreement."