Foreign Relations of the United States, 1964–1968, Volume VIII, International Monetary and Trade Policy

143. Memorandum From the Secretary of Commerce’s Assistant (Simpich) to Secretary of Commerce Trowbridge¹

Washington, September 8, 1967.

SUBJECT

• Balance of Payments Advisory Committee

Here for the record and for your talks with Secretary Fowler are the positions taken yesterday by your Advisory Committee:

1. The Committee will support a target figure for 1968 that is $300 million below the projected level of capital outflows for 1967, i.e., it will support a 1968 target figure of $1.3 billion—subject to the caveat that the recalcitrant companies can be brought $200 million closer to their target level.

2. The Committee offered to form a small group to help persuade recalcitrant companies to cooperate. This offer was neither accepted nor rejected.

3. The Committee asked for and was promised an opportunity to review the Administration’s decision on the target figure before it is announced in order to determine whether the Committee will publicly support the decision.

4. The Committee reiterated its position that LDC’s should be treated as “program countries.”

5. The Committee raised again the proposal that credit should be given for investments in kind. You promised that you would have Bill Shaw look into this matter once again.

6. The Committee reiterated its view that the Administration cannot count on business support of the voluntary program much longer unless it also comes forward with a long range plan to supplement the “short term” voluntary program.

7. The Committee observed that if the target is below a figure it believes industry can meet, it would rather have a shot at controls. (Weinberg² probably dissents.)

FS

1. Source: Washington National Records Center, RG 40, Executive Secretariat Files: FRC 74 A 30, Balance of Payments Background Material. Confidential.
2. Probably Sidney J. Weinberg, General Partner, Goldman Sachs & Company.