Foreign Relations of the United States, 1969–1976, Volume III, Foreign Economic Policy; International Monetary Policy, 1969–1972

55. CIEP Study Memorandum No. 1¹

Washington, March 8, 1971.

MEMORANDUM FOR

• The Secretary of State
• The Secretary of the Treasury
• The Secretary of Agriculture
• The Secretary of Commerce
• The Secretary of Labor
• The Director, Office of Management and Budget
• The Chairman, Council of Economic Advisers
• The Assistant to the President for National Security Affairs
• The Executive Director of the Domestic Council
• The Special Representative for Trade Negotiations

SUBJECT

• Development of an International Economic Strategy for 1971-1972

The President has decided that:²

1. The Administration should develop a positive trade and legislative strategy for 1971-1972. This strategy should include a comprehensive and constructive program for industrial adjustment to foreign competition. Such a program should help minimize the possibility of a Congressional initiative for restrictive legislation.

2. In order to assure that the shoe case is considered in this larger context of Administration trade and legislative strategy, the President has directed that I prepare a complete analysis of the issues and the impact of the shoe case within two weeks.

3. We should begin intensive planning for a major international initiative on a broad range of international economic problems focusing on the US-EC-Japan relationship. While the main emphasis shall probably be on trade problems, it should also consider important related issues such as investment, aid, and monetary problems.

4. The Administration should initiate a basic review of its approach to the balance of payments and international monetary problems. One illustration of the many issues that arise in the context of our balance of payments programs is the capital control program. I attach a paper from Mr. Shultz on that particular subject.³

Action Requested:

1. I would appreciate your preliminary suggestions on subjects to be included in items (1) and (3) by March 15. The purpose of this initial outline of subject areas is to define the possible scope of the effort and to serve as a basis for discussion at the first meeting of the Council to be scheduled shortly.

2. I would appreciate receiving any additional comments you have on the shoe case by March 12, 1971.

3. Your comments by March 30 on the paper submitted by Mr. Shultz would be welcome.

Peter G. Peterson

1. Source: National Archives, Nixon Presidential Materials, NSC Files, Agency Files, Box 218, CIEP. Confidential. Initialed by Haig.
2. See Document 53.
3. Document 54.