68. Memorandum From the President’s Counselor for Economic Policy (Rush) to President Nixon 1
- U.S. Position on Gold
Attached is a brief memo by means of which Secretary Simon has attempted to obtain a unified U.S. position on gold.
Secretary Kissinger, Chairman Burns, and I agree with Secretary Simon’s proposals and recommend that you authorize him to put them forward. Because of a conflict of interest, Mr. Ash has disqualified himself from participation in matters involving policy toward gold.
The proposals would contribute to the fight against inflation in the U.S. They would be popular with Congress and the American people. The Congress will probably legislate permission for private ownership of gold within a matter of weeks in any event if we don’t propose it.
President Giscard and Chancellor Schmidt have indicated to Secretary Shultz that the Europeans will probably do something on their own very soon if a deal cannot be made with us. Secretary Shultz gave them reason to hope that we would come forth with a constructive response to the European proposals and the current extreme European concern about the economic and political situation in Italy. Secretary Kissinger, Secretary Simon and I are strategizing on how to get the maximum proposals in dealing with the new French and German governments.
Mr. Stein disagrees with two aspects of the proposals as indicated in his attached memorandum.2 But, Secretary Kissinger, Secretary Simon and I think the package needs to be taken as a whole for negotiating success.[Page 250]
The urgency arises because Secretary Simon is beginning meetings with the major financial leaders starting late today and this subject will be foremost in their minds.
- Source: National Archives, Nixon Presidential Materials, White House Special Files, Staff Member & Office Files, President’s Office Files, President’s Handwriting, Box 27, June 1974. Confidential. A stamped notation on the memorandum indicates Nixon saw it.↩
- Printed as Document 67.↩
- President Nixon initialed this option.↩
- No classification marking.↩
- See footnote 2, Document 63.↩
- See Document 64.↩