28. Telegram From the Department of State to the Embassy in West Germany1

281378. Subject: Presidential Message to Chancellor Schmidt. Embassy requested transmit following message from President Ford to Chancellor Schmidt:

1. “Dear Mr. Chancellor: As I mentioned in my previous letter,2 we and the French reached some understandings in Martinique on the elements of consumer country collaboration necessary before we can move on to subsequent steps. Progress on financial cooperation is of particular concern to us at this time. In all frankness I must tell you that I do not believe that the United States will be in a position to participate in a consumer-producer meeting until the consumers have established their solidarity in the financial field.

2. The Group of Ten Working Group has made some progress on resolving the issues necessary to enable us to make a final decision on financial cooperation among participating OECD countries. As I mentioned in Washington, however, I am convinced that a satisfactory outcome depends very much on the fullest possible exchange and understanding of views between your government and mine.

3. I hope, therefore, that we can remain in close contact on the remaining major issues that need to be resolved to assure that any new facility meets its objective of underpinning the economic health and cooperation of the industrial democracies. I have particularly in mind the questions relating to the size of the facility, the respective national quotas and the form of national commitments (loans, guarantees or some combination of the two).

4. I would like to have Arthur Burns discuss these questions with you on my behalf and would be grateful if you could meet with Arthur in Bonn for this purpose during the early part of January.3 With regard to this task of effective financial cooperation, as well as related en[Page 108]deavors to secure the strength of our economies and our alliance, you can be assured of my fullest cooperation in the pursuit of solutions that serve our mutual interests. With warm regards, Gerald R. Ford.”

  1. Source: Ford Library, National Security Adviser, Presidential Correspondence with Foreign Leaders, Box 2, Germany (FRG)—Chancellor Schmidt (1). Secret; Immediate; Nodis. Drafted by Katz and approved by Kissinger.
  2. On December 16, Ford sent a letter to Schmidt to inform him about his talks with Giscard in Martinique. (Telegram Secto 21 to Bonn; ibid.) The memorandum of the December 15 meeting between Ford and Giscard is Document 24.
  3. Burns met with Schmidt in Hamburg on January 11, 1975, and reported that the Chancellor accepted entirely the political concept underlying the U.S. plan for a financial safety net and would endorse it. Schmidt also felt that “speedy movement” on the plan was necessary. (Telegram 42 from Hamburg, January 11; National Archives, RG 59, Central Foreign Policy Files, P850104–1539)