156. Memorandum From the President’s Special Assistant (Rostow) to President Johnson1
Attached is a copy of the communique on the Frankfurt meeting on gold.2 It has been released in Europe in time to be out before the opening of the London gold market.
It means in effect the adoption of our preferred alternative 1.3 The London market will open with a strong multilateral commitment of support for the $35 price.
Although there is no indication of this in the statement, our partners wish to review the situation with us in a week if there is serious trouble.
[Page 448]In addition they are taking whatever steps they can, with the Swiss in the lead, to tighten up on credit available for gold speculation.
They will also operate with us in forward exchange markets to help protect the dollar against any speculative attacks.
The statement closes with an implied invitation to the French to join the party.
We are letting the statement speak for itself with no backgrounding.
- Source: Johnson Library, National Security File, Subject File, Balance of Payments, Vol. V [2 of 2], Box 3. Secret.↩
- Not printed; text is printed in Annual Report of the Secretary of the Treasury on the State of the Finances for the Fiscal Year Ended June 30, 1968, p. 349. Fowler sent 10 U.S. officials, including Deming, Okun, and Alfred Hayes, President of the New York Federal Reserve Board, to the Frankfurt meeting, which had been called to deal with the growing gold problem. (Telegram CAP 67999 from Rostow to Jim Jones, November 24; Johnson Library, National Security File, Subject File, Balance of Payments, Vol. V [2 of 2], Box 3)↩
- Not further identified.↩
- Fried signed for Rostow above Rostow’s typed signature.↩