249. Memorandum From the President’s Assistant for National Security Affairs (Scowcroft) to President Ford1
I have reached accommodation with Treasury on the text of a message (attached) from you to Prime Minister Callaghan on the British fi-
[Typeset Page 786]nancial crisis, though Treasury is still opposed to specific mention of the sterling balance issue.
Agreement was reached ultimately by deletion of the phrase which I have included in brackets on page 2 “and we have confidence in prospects for success.” I cannot, in good conscience, recommend you accept deletion of this phrase. While it has no specific substantive significance, it does convey a greater sense of sympathy on your part for his problem. I agreed to its deletion only in order to give you the option of a message which had Treasury concurrence.
Arthur Burns believes the sentence on simultaneity to be unwise but he has not interposed a categorical objection. If you approve this message, either with or without the phrase in brackets, you could have the Military Aide or the Usher telephone me. I could then dispatch the message immediately to Callaghan in order that he would have it at opening of business in London on Monday.
Brent Scowcroft
Approve message including bracketed phrase
Approve message excluding bracketed phrase
Disapprove
Attachment
Message From President Ford to British Prime Minister Callaghan
Washington, November 20, 1976.
Dear Jim:
I want to extend my personal thanks for sending Harold Lever to meet with me and my colleagues. Harold articulated for us your political, financial, and economic situation. His charm was in clear evidence and he, as usual, was a very able representative.
As you are well aware, and as Harold will have reported to you, I have been concerned for some time, as a friend, by the difficulties you are facing. We have a sense here of the gravity of Britain’s struggle, not only for our own country but for the entire free world. We take heart that you are at the helm. I know they are extraordinarily difficult, but I believe the policies you have been elaborating are on the right path.
We are encouraged that your government is now actively involved in discussions with representatives of the IMF on your proposed drawing. I am persuaded that the IMF will bring its best judgment to [Typeset Page 787] bear on that process. I am also persuaded that these discussions afford the most effective opportunity to deal with the problems Britain faces.
In the expectation that your government will, as your message of November 17 suggests, come to substantial agreement on conditions deemed necessary by the Fund to achieve stability, I can assure you that we will, once such agreement has been reached, work sympathetically with you on a responsible way of addressing various aspects of the sterling balances and related concerns. Should a resolution be reached, [and we have confidence in prospects for success,] it could be announced simultaneously with the announcement of your agreement with the Fund. As your efforts to achieve a major stabilization of Britain’s internal and external positions proceed, we hope that you will be able to avoid injurious consequences in the defense and trade areas.
I have obtained support from my colleagues for this approach with a deep sense of your commitment, and that of your government, to a strong and vital Britain, and of appreciation for our nations’ deep and long-standing friendship. I hope the negotiations will go well and look forward to hearing soon that agreement with the Fund has been reached.
My deepest personal regards.
Sincerely,
-
Summary: Scowcroft requested Ford’s approval of an attached reply to Callaghan’s November 12 letter.
Source: Ford Library, National Security Adviser, Kissinger-Scowcroft West Wing Office Files, Box 25, UK (22). Secret. All brackets are in the original. Ford initialed his approval of the message including the bracketed phrase. Ford’s reply was sent to London as message WH 61612 on November 22. (Ibid.)
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