210. Telegram From President Johnson to Prime Minister Wilson1
CAP 82769. I have instructed Fowler in my name to make recommendations to Kiesinger urging multilateral and cooperative solutions for present situation. He has done so with great vigor, and will stay in Europe to lead effort to persuade Germans to revalue and to prevent large unilateral French devaluation. German position strongly against revaluation at this time, proposing instead reducing border taxes on imports and lessening some export rebates. We do not believe this approach would work, or contain French devaluation to reasonable level.
Our tentative approach would be to work for something like 10 percent German revaluation and 5 percent French devaluation, with small corresponding moves by Italy and the Netherlands. To confirm this approach, we are considering G–10 meeting in Europe with Schweitzer present as soon as possible. We assume you will wish to cooperate fully in this approach and will not wish to move in any way pending the outcome of these efforts.
- Source: Johnson Library, National Security File, Subject File, Monetary Crisis, November 1968, Cables and Memos, Vol. 1 [2 of 2], Box 22. Secret. A copy of the telegram, identified as “Telecon 8,” was sent from Walt Rostow to Fowler on November 19. (Ibid.) According to a memorandum from Rostow to President Johnson, November 18, 7:10 p.m., this message to Wilson “incorporates the approach that Joe, Bill Martin, Joe Barr, Gene Rostow, etc., agree is the right approach.” A handwritten notation on Rostow’s memorandum reads: “Approved, 9:25 p.m.” (Ibid.)↩