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

40. Memorandum From the President’s Special Assistant for National Security Affairs (Bundy) to President Johnson¹

Washington, February 8, 1965.

SUBJECT

• Balance of Payments meeting

1. As I understand it, all outstanding issues have been brought within range of agreement, except for the issue of domestic monetary policy, which is highly controversial (see para. 3 below).

2. Dillon will handle the presentation and will discuss, among other things: (1) a possible call from you to Pearson; (2) the question of need for legislation freeing the bankers and businessmen from anti-trust fears.

3. Dillon will specifically exclude from the discussion in this meeting reference to domestic interest rates on page 13 of the message.² This is to avoid a wrangle in the meeting and a possible question of Martin’s prerogatives. He and Martin and Gordon and Ackley will try to settle this question of language and substance out of court and only if there is a continuing argument will the matter come to you directly. Your interest in maintaining easy credit will of course be defended throughout by your people.

McG. B.

1. Source: Johnson Library, National Security File, Subject File, Balance of Payments, Vol. 2. [1 of 2], Box 2. Secret.
2. Reference is to a draft of the balance-of-payments message.