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United Kingdom - Prime Minister Harold Wilson (1)
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1555865
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United Kingdom - Prime Minister Harold Wilson (1)
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This file contains material relating to Alexander Haig.
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Presidential Correspondence with Foreign Leaders (Ford Administration)
Presidential Correspondence with Foreign Leaders
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Great Britain
North Atlantic Treaty Organization. (4/4/1949 - )
Economics
Recessions
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1974
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The original documents are located in Box 5, folder "United Kingdom - Prime Minister
Harold Wilson (1)" of the National Security Adviser's Presidential Correspondence with
Foreign Leaders Collection at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 5 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
MEMORANDUM
NATIONAL SECURITY COUNCIL
4053X
SECRET
ACTION
September 13, 1974
MEMORANDUM FOR SECRETARY KISSINGER
FROM:
A. Denis Clift or
SUBJECT:
Letter from Prime Minister Wilson Regarding
the Retirement of General Goodpaster
Prime Minister Wilson has sent the President a message via the
Cabinet Line regretting the retirement of General Goodpaster and
expressing approval of General Haig as his successor.
The memorandum for your signature to the President at Tab I
forwards Prime Minister Wilson's message and summarizes its
contents.
RECOMMENDATION
That you sign the memorandum to the President at Tab I.
SE GRET
DECLASSIFIED
E.O. 12958, SEC. 3.5
FORD LIBRARY & OERALD
NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES
BY lob
, NARA, DATE 3/9/06
&
GERALD
FORD 1 LIBHART
MEMORANDUM
THE WHITE HOUSE
4053X
WASHINGTON
SECRET
INFORMATION
MEMORANDUM FOR THE PRESIDENT
FROM:
Henry A. Kissinger
SUBJECT:
Message from Prime Minister Wilson
Regarding the Retirement of General Goodpaster
Prime Minister Wilson has sent you a message (at Tab A) via the
Cabinet Line regretting General Goodpaster's decision to retire.
The Prime Minister states that the General's "outstanding service
has been widely recognized in this country and we shall miss his
leadership and advice."
The Prime Minister welcomes your willingness to nominate another
United States general officer to succeed General Goodpaster. He
adds that General Haig would bring "excellent qualities" to the post
and that the United Kingdom would be happy to accept him. Finally,
the Prime Minister states his understanding that General Haig's
appointment would not take effect until near the end of the year and
that this timing would meet general agreement among the allies.
DECLASSIFIED
SECRET
E.O. 12958, SEC. 3.5
NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES
BY
am
, NARA, DATE 3/9/04
E/61
GERALD
& FOhD s
Text of Message from the Prime Minister to President Ford
Dear Mr. President:
Thank you for your message of 30 August.
General Goodpaster has been an outstanding SACEUR and I was
sorry to hear about his decision to retire. His outstanding service
has been widely recognized in this country and we shall miss his
leadership and advice.
I welcome your willingness to nominate another United States
general officer to succeed General Goodpaster. General Haig
would bring excellent qualities to the post and we for our part
would be happy to accept him.
I understand that General Haig's appointment would not take effect
until towards the end of the year, and I believe that this timing
would meet general agreement among our allies.
Yours sincerely,
/s/ Harold Wilson
September 13, 1974
IF
DOC
RECD
LOG NBR
INITIAL ACTION O
NSC CORRESPONDENCE PROFILE
MO
DA
MO
DA
HR
13
9
13
19
74040530
cuft
REFERENCE:
CIRCLE AS APPROPRIATE
TO: PRES
FROM: KISSINGER
S/S
UNCLAS LOG IN/OUT
KISSINGER
+
COLBY, W
OTHER
LOU
NO FORN
NODIS
SOURCE/CLASS/DESCRIPTION
SCOWCROFT
SCHLESINGER, J
C
EYES ONLY EXDIS
DAVIS
ST EX SEC
S
CODEWORD
TS
SENSITIVE
SUBJECT: LTR TO Per fm PM Wilson of England re
reterement of goodporter - LA
INTERNAL ROUTING AND DISTRIBUTION
REC
ACTION REQUIRED
ACTION
INFO
CY
ADVANCE CYS TO HAK/SCOWCROFT
FOR
MEMO FOR HAK
(
)
MEMO FOR PRES
STAFF SECRETARY
(
)
REPLY FOR
FAR EAST
(
)
SUB-SAHARAN AFRICA
APPROPRIATE ACTION
(
)
DISTRIBUTION/INITIAL ACTION ASGMT
MID EAST / NO. AFRICA / SO. ASIA
MEMO
TO
(
)
RECOMMENDATIONS
(
)
EUROPE / CANADA
JOINT MEMO
(
)
LATIN AMERICA
REFER TO
FOR:
(
)
UNITED NATIONS
ANY ACTION NECESSARY?
(
ECONOMIC
)
SCIENTIFIC
CONCURRENCE
(
)
PROGRAM ANALYSIS
DUE DATE:
NSC PLANNING
COMMENTS: (INCLUDING SPECIAL INSTRUCTIONS)
CONGRESSIONAL
OCEANS POLICY
INTELLIGENCE
DATE
FROM
TO
S
SUBSEQUENT ACTION REQUIRED (OR TAKEN):
CY TO
9/13
HAK
+
Pres for info (9/22)
9/16
C
NFAR per HAK
SUBSEQUENT ROUTING/ACTIONS
DISPATCH
CY RQMTS: SEE ABOVE PLUS:
MICROFILM & FILE RQMTS:
NSC/S DISP INSTR
NOTIFY
& DATE
BY
M/F'D
BY
SPECIAL DISPOSITION:
CRT ID:
SA
SF
CROSS REF W/
OPEN
HP
NS
SUSPENSE CY ATTACHED:
FOLDER:
CLOSE BTm
W.H.
EP
PA
DY
(NBC-74-21)
2A
Outside System
SECRET
ACTION
September 18, 1974
MEMORANDUM FOR SECRETARY KISSINGER
FROM:
A. Denis Clift
SUBJECT:
Presidential Reply to Prime Minister Wilson
The memorandum for your signature to the President at Tab I would
forward a Cabinet Office message from the Prime Minister containing
advance notice of the UK decision to call October 10 General Elections,
together with a proposed reply for the President's approval to the Prime
Minister.
The Prime Minister's message notes his confidence that he can rely on
U.S. cooperation should there be a major run on Sterling during the
election campaign. The President's reply would provide the necessary
assurances.
Robert Hormats concurs.
RECOMMENDATION
That you sign the memorandum for the President at Tab 1.
ADClift:gw:9/18/74
FORD
DECLASSIFIED
8
E.O. 12958, SEC. 3.5
SECRET
NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES
, NARA, DATE 3/9/04
GERALD
LIBRARY
BY lda
SECRET
ACTION
MEMORANDUM FOR THE PRESIDENT
FROM:
Henry A. Kissinger
SUBJECT:
Reply to Prime Minister Wilson
The British Prime Minister Harold Wilson has sent you the message at
Tab B informing you that the decision has been taken to call for UK
General Elections on October 10 -- with the decision to be announced
on September 18 at 12:45 p.m. London time.
Prime Minister Wilson recalls that the February 1974 General Elections
were inconclusive, resulting in the present minority Labor Government,
a government unable to conduct its business effectively in the House of
Commons. The new elections have been called in the hopes that they will
result in a clear majority government able to deal with the twin problems
of inflation and unemployment.
The Prime Minister notes the possible danger of a run on the rate of
Steshing during the British election campaign. and he expresses confidence
that he will be able to count on U.S. goodwill and cooperation should this
contingency arise,
The reply at Tab A to the Prime Minister would express your thanks for
his message. Your message would also express your agreement on the
need for cooperative attention should the Sterling rate be jeopardized and
would assure him that the United States would be prepared for early con-
sultations aimed at dealing with the situation. (There is always the real
possibility of a dangerous drop in the rate of sterling, particularly if oil
related Sterling deposits have to be exchanged for dollars. Should this
occur, the United States might be able to assist the UK by helping to
support Sterling.)
RECOMMENDATION
That you approve the message to Prime Minister Wilson.
APPROVE
DISAPPROVE
DECLASSIFIED
GERALD
LIBRANY
SECRET
E.O. 12958, SEC. 3.5
NSC MEMO, 11/24/98, STATE BEPT. GUIDELINES
ADClift:gw:9/18/74
BY. Nola
, NARA, DATE 3/9/04
26
SECRET
FROM:
THE WHITE HOUSE
TO:
THE CABINET OFFICE
Message From the President to Prime Minister Wilson
Dear Mr. Prime Minister:
This is to thank you for your message of September 18 informing
me in advance of the decision being taken to call for General Elections
on October 10.
I appreciate the point you have raised with regard to Sterling.
Should such a contingency arise, I fully agree it should receive our
cooperative attention, and I assure you that we would look forward
to early consultations with a view to identifying appropriate areangements
to deal with the situation.
Again, your message is very much appreciated.
Sincerely,
Gerald R. Ford
FUND
DECLASSIFIED
E.O. 12958, SEC. 3.5
SECRET
NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES
LIBRARY + DERALO
BY Valor
, NARA, DATE 3/9/04
2D
September 18, 1974
Message from the Prime Minister to President Ford
Dear Mr. President:
I am sending you this message (which for obvious reasons I have to ask
you to treat as personal to yourself alone until an announcement is made)
to tell you that I have decided to advise the Queen to dissolve Parliament
and to call a General Election. This will be announced at 12:45 p. m.
(our time) on Wednesday 18 September, and the election will take place
on Thursday 10 October.
As you know, the last General Election was held as recently aslast
February. But it produced an inconclusive result, in the sense that,
though my party emerged as the largest single party in the House of
Commons, no party could command an overall majority. Under our
system this is a situation in which the government cannot be sure of
carrying its business in the House of Commons and giving effect to the
program to which it is committed. Moreover, the twin problems of a
high rate of inflation and the prospect of rising unemployment present
us with an economic situation in which it is desirable that there should
be a government with a clear majority to carry out the measures which
the situation requires.
Sterling has been reasonably steady recently. But there is no doubt that
confidence in the city of London is delicate, and any election campaign
is full of uncertainties. We do not have to defend a fixed rate (as we did
in 1966 and 1970), and of course we shall do what we can to keep things
steady. But I know that I can count on your good will, and indeed coopera-
tion, if anything like a major run should develop, and our people thought
it advisable to get in touch with yours about arrangements to deal with it.
With my personal regards,
Yours sincerely,
Harold Wilson
FORM
&
GERALD
LIBRARY
-1
2E
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
SECRET
ACTION
MEMORANDUM FOR THE PRESIDENT
FROM:
Henry A. Kissinger
SUBJECT:
Reply to Prime Minister Wilson
you unive well that
of
The Dritish Prime Minister Harold Wilson has sent you the message at
Tab B informing you that the decision has been taken to call for UK
General Elections on October 10. with the decision to be announced
on September 18 at 12:45 P. my London time.
Prime Minister Wilson recalls that the February 1974 General Elections
were inconclusive, resulting in the present minority Labor Government,
a government unable to conduct its business effectively in the House of
Commons. The new elections have been called in the hopes that they will
result in a clear majority government able to deal with the twin problems
of inflation and unemployment.
The Prime Minister notes the possible danger of a run on the rate of
Sterling during the British election campaign, and he expresses confidence
that he will be able to count on U.S. goodwill and cooperation should this
contingency arise.
a prof. ml upty to the Prime minister's missays is at Tab A. The raphy
The reply at Tab A to the Prime Minister would express your thanks for
his message, Your message would also express your agreement. on the
need for cooperative attention should the Sterling rate be jeopardized and
Your rephy
would assureshim that the United States would be prepared for early con-
sultations aimed at dealing with the situation. (There is always the real
possibility of a dangerous drop in the rate of sterling, particularly if oil
related Sterling deposits have to be exchanged for dollars. Should this
occur, the United States might be able to assist the UK by helping to
support Sterling, )
DECLASSIFIED
E.O. 12958, SEC. 3.5
NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES
NARA, DATE 3/9/04
sucha
RECOMMENDATION
FORD
That you approve the message to Prime Minister Wilson,
APPROVE
DISAPPROVE
QERALD a GERAMA
as will as
BY Wa
SECRET
with his comment
of N vant of exection
2F
SECRET
FROM:
THE WHITE HOUSE
TO:
THE CABINET OFFICE
The
Message From the President to Prime Minister Wilson
VIA Cabriet Line
Dear Mr. Prime Minister:
This is to thank you for your message of September 18 informing
I every much appreciated
me in advance of the decision being taken to call for General Elections
on October 10.
+ appr esiate the 'point you have raised regard to Sterling,
without your comments with about
that Should such a contingency arise, I fully agree it should receive our
have asked Arthur Burns and Bill Simon to be
cooperative attention, and Massure you that we would look forward
prepared for early
to early] consultations with a view to identifying appropriate arrangements
to deal with the situation.
with personal expands,
n
much
appr
sciated
Sincerely,
Gerald R. Ford
DECLASSIFIED
E.O. 12958, SEC. 3.5
SEGRET
NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES
BY. Inda
, NARA, DATE 3/9/04
FORD & LIBRARY GERALD
See 7500246
6389X
3A
MEMORANDUM
THE WHITE HOUSE
for final actur
WASHINGTON
INFORMATION
December 31, 1974
SECRET /SENSITIVE
MEMORANDUM FOR:
THE PRESIDENT
FROM:
HENRY A. KISSINGER
R
AR7
SUBJECT:
Message from Prime Minister Wilson
on U.S. Economy
Prime Minister Wilson has sent you a message (Tab A) to share
with you his anxiety over the growing worldwide unemployment problem
and the impact that the U.S. recession is having on it. He notes
specifically that he wanted you to have the benefit of his views during
your consideration of U.S. economic policy.
Wilson feels that your Administration has provided invaluable
leadership to international efforts to deal with complex financial,
economic, energy and trade problems. But because he believes
that the U.S. is "the motor of the industrialized world," Wilson is
worried about the fact that our economic slowdown is contributing to
serious unemployment in the UK and elsewhere and to global recession
despite the attempts of the UK and other Europeans to stimulate
economic activity in their countries. Wilson wants to avert a
socially dangerous buildup of domestic unemployment and to reduce
the temptation for the most hard pressed countries to fall back into
protectionist measures. He believes that it is necessary for all
western governments to act to prevent recession from deepening
into depression in order to improve the confidence of business and
to avoid protectionist pressures.
A proposed response to the Prime Minister is being staffed separately
and will be forwarded to you shortly.
DECLASSIFIED
SEGRET/SENSITIVE
E.O. 12958, SEC. 3.5
NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES
BY Wa
, NARA, DATE 3/9/04
Delivered to Denis Clift at
the White House 12/31/74
4:30 pm
3B
FROM:
BRITISH EMBASSY
THE HON.
WASHINGTON, D.C. 20008
SIR PETER RAMSBOTHAM KCMG
TELEPHONE: (202) 462-1340
30 December 1974
President Gerald R Ford
President of the United States
of America
The White House
Washington DC
Пу dear M President
The British Prime Minister, Mr Harold Wilson,
has asked me to forward to you a personal message
from him, which is enclosed herewith.
Soun sencerely
Peter Ram bother
(Peter Ramsbotham)
FORD
6 LIBRARY OFRATO
3C
Jim Callaghan and I are looking forward very much to our
visit to Washington at the end of next month, when we hope to
be able to discuss all the major issues confronting the
Western world. However, I felt it would not be right to wait
until then to share with you one particular anxiety I have.
As you will know we have all been watching with close
attention your efforts to minimise unemployment while continuing
to fight inflation. Of these two grave threats to our economies
- and ultimately perhaps to our cohesion and our institutions -
the former seems to us to be growing more serious.
To a major extent the decline in activity and growth which
is taking place is certainly attributable to the five-fold
increase in world oil prices, which has taken huge sums of
money out of the normal circulation and put it into the
reserves of a few governments. This deflationary impact is
thus one aspect of the complex of financial, economic, energy
and trade problems which the action of the oil producers has
set us. All of them need to be tackled by co-operative effort,
and your Administration has given invaluable leads in this
direction. It is, I think, no less true in this economic
aspect than in the others that we all need to have continuously
in mind the effect on others of our own actions and policies.
We in the United Kingdom have thought it right against
this background to stimulate activity and many of our
&
FORD
/European
3/9/04
and
'VRVN'
State Dept. Guidelines
E.O. 12958, Sec. 3.5
GERALD
DECLASSIPIED
European allies are doing the same. Each one of us by doing
so helps to avert a socially dangerous build-up of unemployment
within his own country and at the same time helps to maintain
international activity and to reduce the temptation for the
more hard pressed countries to fall back into measures of a
protectionist nature.
But the US is the motor of the industrial world: and if
the motor fails then the rest of us will inevitably come to
a halt. The published indicators which have come out in the
last few weeks have successively shown a picture of a motor
which is indeed slowing down. The recession now looks likely
to be deeper and longer than had been expected and I understand
that even the more optimistic forecasters do not now expect
any significant upturn before the second half of 1975.
It is right to let you know that for us in Britain, and
no doubt for many others, this is a deeply worrying prospect.
The confidence of business, the support of labour for domestic
economic policies of freedom from restriction in international
trade all depend on the conviction that all our governments
will act to prevent recession from deepening into depression.
I look forward to discussing all this with you and
telling you something of how we are tackling our problems in
Britain, but wanted to express my concern now because I know
that you will be thinking about economic matters in the next
week or two.
&
GERALD
LIDRARY
30 December 1974
SIR PETER RAMSBOTHAM
BY HAND
LIBRARY
3D
4
FORDO a
GERALD
President Gerald R Ford
President of the United States
of America
The White House
Washington DC
THE WHITE HOUSE
WASHINGTON
January 12, 1975
Bob Hormats
Brent didn't have a chance to get to this until
Sunday. He asks whether now, in view of the slip,
it isn't necessary to include more substance
on energy and economics as an advance of what
the President will say in his messages this
week?
Rem would of course, have to go by message.
Is it correct to assume that we will be doing
other "advance'messages (to Schmidt, Miki,
Giscard). Wilson's could be worked in conjunc-
tion with those, but perhaps with specific
reference to his letter.
Bud
THE WHITE HOUSE
WASHINGTON
1/13/75
Mrs. Davis:
May I please have
Nak chron cys when
all action is complete? ?
P/S fud memos as marked.
Thanks!
-Karhy
(3 attached tem ≥ la
k
MEMORANDUM
6389-X (followup)
NATIONAL SECURITY COUNCIL
SECRET/SENSITIVE
ACTION
January 7, 1975
MEMORANDUM FOR: SECRETARY KISSINGER
FROM:
ROBERT HORMATS RH
SUBJECT:
Response to Message from Prime
Minister Wilson
At Tab A is a proposed letter from the President replying to Prime
Minister Wilson's message of concern about the adverse international
impact of the U.S. recession. The reply indicates that the President
shares Wilson's concern about recession and unemployment and that
his new policies will deal directly with these problems without seriously
worsening inflation.
I have coordinated with Denis Clift in the drafting of this response. But,
because of the pro forma character of its economic aspects and the
private nature of the message, I have not felt it necessary to show it to
the speech writers or other economic types in the White House. If you
wish me to do so, I shall. A copy of Brent Scowcroft's earlier memo-
randum to the President summarizing Wilson's message is at Tab B.
RECOMMENDATION:
That you sign the memorandum for the President at Tab 1.
Concurrence:
Mr. Clift
on
DECLASSIFIED
& FORD
SECRET/SENSITIVE
E.O. 12958, SEC. 3.5
BY
NSC MEMO, ha 11/24/98, STATE DEPT. GUIDELINES
, NARA, DATE 3/9/04
FORD LIBRARY s GERALD
MEMORANDUM
6389-X followup
THE WHITE HOUSE
WASHINGTON
SECRET/SENSITIVE
ACTION
MEMORANDUM FOR:
THE PRESIDENT
FROM:
HENRY A. KISSINGER
SUBJECT:
Response to Message from Prime
Minister Wilson
Prime Minister Wilson's message, summarized in Brent Scowcroft's
memorandum of December 31 (Tab B), expresses concern about the
adverse impact which the U.S. recession is having on his country's
economy and throughout the world. At Tab A is a proposed response
from you to the Prime Minister indicating that you share his concern
over unemployment and recession, that you are in the process of
developing new policies which will address this issue without triggering
major inflationary pressures, and that you look forward to discussing
these issues in greater detail during his upcoming visit.
RECOMMENDATION:
That you sign the letter to Prime Minister Wilson at Tab A.
DECLASSIFIED
E.O. 12958, SEC. 3.5
SEGRET/SENSITIVE
NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES
BY. Nn
, NARA, DATE 3/9/04
FORD
GERALD $
D
THE WHITE HOUSE
WASHINGTON
Dear Mr. Prime Minister:
I was pleased to receive your message of December 30,
1974, and to have the benefit of your thinking about the
policies I am now developing and will announce later this
month. We are in total agreement on the importance of
avoiding a build up of unemployment and a worsening of
the present recession.
The United States and Great Britain have in recent months
been struggling with the major issues of unemployment
and inflation as have our colleagues elsewhere in Western
Europe and in Japan. There are, as we both know, no
easy answers to these difficulties; but it is clear that we
should not address one part of the problem while ignoring
the other. Each country must act consistent with its pri-
orities and its particular economic circumstances; each
must choose the blend of policies which it considers most
suitable. We had expected that the policies I announced
last October would bring about a slowdown in our inflation
without worsening the recession. But we had also recog-
nized that any policy initiated at that time required continued
scrutiny so that necessary adjustments could be made if the
need arose.
We are now in the process of reassessing the state of our
economy. We do so with a view not only to the needs of
the United States but also to the impact of our policies upon
other countries. In my discussions with Chancellor Schmidt,
President Giscard d'Estaing, Prime Minister Trudeau and
others, I have strongly emphasized the importance we attach
to implementing policies which contribute to, rather than harm,
the economic well-being of other countries. The policies we
are now developing will, in our view, meet this test. They
2
will deal directly with the economic slowdown we now face
without triggering major inflationary pressures which might
result from an overly expansionary policy.
I expect that Secretary Simon will be briefing Chancellor
Healey on some aspects of these policies during his coming
visit to the U.S. I also expect we will brief your Embassy
prior to announcement. Your visit will enable us to discuss
these issues in greater detail.
I very much look forward to seeing you later this month.
Sincerely,
The Right Honorable
Harold Wilson
Prime Minister
London
THE WHITE HOUSE
1
The Right Honorable
Harold Wilson
Prime Minister
London
MI
THE WHITE HOUSE
WASHINGTON
Dear Mr. Prime Minister:
I was pleased to receive your message of December 30
and to ha benefit of your thinking during development of
the policies I shall announce later this month. We are in
total agreement about the importance of avoiding a build up
of unemployment and a worsening of the present recession.
Both the United States and Great Britain have in recent
months been struggling with the major issues of unemploy-
ment and inflation as have our colleagues elsewhere in
Western Europe and in Japan. There are, as we both know,
no easy answers to these difficulties; but it is clear that we
cannot address one part of the problem while ignoring the
other. Each country must act consistent with its priorities
and its particular economic circumstances, and must choose
the blend of policies which it considers most suitable. We
had expected that the policies I announced last October would
bring about a slowdown in our inflation without worsening
the recession. But we had also recognized that any policy
put forward at that time required continued scrutiny so that
necessary adjustments could be made if the need arose.
have continueds
We are now in the process of assessing the state of our
have
economy. We de so with a view not only to the needs of the
United States but also to the impact of our policies upon
other countries. In my discussions with Chancellor Schmidt,
President Giscard d' 'Estaing, Prime Minister Trudeau and
others, I have strongly emphasized the importance we attach
to implementing policies which contribute to, rather than harm,
the economic well-being of other countries. The policies we
are now developing will, in our view, meet this test. They
FORD
&
GERALD
2
will deal directly with the economic slowdown we are now
facing without triggering the major inflationary pressures
which might result from an overly expansionary policy.
I expect that Secretary Simon will be briefing Chancellor
Healey on some aspects will also of these policies during tional his, information coming
visit to the U.S. I also expect provide we will be able to brief your
through
Embassy prior to announcement. Your visit will enable us
to discuss these issues in greater detail.
I very much look forward to seeing you later this month.
Sincerely,
The Right Honorable
Harold Wilson
Prime Minister
London
FORD LIBRARY & OERALD
THE WHITE HOUSE
WASHINGTON
Dear Mr. Prime Minister:
I was pleased to receive your message of December 30
and to have benefit of your thinking during development of
the policies I shall announce later this month. We are in
total agreement about the importance of avoiding a build up
of unemployment and a worsening of the present recession.
Both the United States and Great Britain have in recent
months been struggling with the major issues of unemploy-
ment and inflation as have our colleagues elsewhere in
Western Europe and in Japan. There are, as we both know,
no easy answers to these difficulties; but it is clear that we
cannot address one part of the problem while ignoring the
other. Each country must act consistent with its priorities
and its particular economic circumstances, and must choose
the blend of policies which it considers most suitable. We
had expected that the policies I announced last October would
bring about a slowdown in our inflation without worsening
the recession. But we had also recognized that any policy
put forward at that time required continued scrutiny so that
necessary adjustments could be made if the need arose.
We are now in the process of assessing the state of our
economy. We do so with a view not only to the needs of the
United States but also to the impact of our policies upon
other countries. In my discussions with Chancellor Schmidt,
President Giscard d'Estaing, Prime Minister Trudeau and
others, I have strongly emphasized the importance we attach
to implementing policies which contribute to, rather than harm,
the economic well-being of other countries. The policies we
are now developing will, in our view, meet this test. They
2
will deal directly with the economic slowdown we are now
facing without triggering the major inflationary pressures
which might result from an overly expansionary policy.
I expect that Secretary Simon will be briefing Chancellor
Healey on some aspects of these policies during his coming
visit to the U.S. I also expect we will be able to brief your
Embassy prior to annourncement. Your visit will enable us
to discuss these issues in greater detail.
I very much look forward to seeing you later this month.
Sincerely,
The Right Honorable
Harold Wilson
Prime Minister
London
GERALD
FORD LIBRAHY &
6389X
ACTION
December 31, 1974
SEGRET/SENSITIVE
MEMORANDUM FOR:
THE PRESIDENT
FROM:
BRENT SCOWCROFT
SUBJECT:
Message from Prime Minister Wilson
on U.S. Economy
Prime Minister Wilson has sent you a message (Tab A) to share
with you his anxiety over the growing worldwide unemployment problem
and the impact that the U.S. recession is having on it. He notes
specifically that he wanted you to have the benefit of his views during
your consideration of U.S. economic policy.
Wilson feels that your Administration has provided invaluable
leadership to international efforts to deal with complex financial,
economic, energy and trade problems. But because he believes
that the U.S. is "the motor of the industrialized world,' Wilson is
worried that the fact that our economic slowdown is contributing to
serious unemployment in the UK and elsewhere and to global recession
despite the attempts of the UK and other Europeans to stimulate
economic activity in their countries. Wilson wants to avert a
socially dangerous buildup of domestic unemployment and to reduce
the temptation for the most hard pressed countries to fall back into
protectionist measures. He believes that it is necessary for all
western governments to act to prevent recession from deepening
into depression in order to improve the confidence of business and
to avoid protectionist pressures.
A proposed response to the Prime Minister is being staffed separately
and will be forwarded to you shortly.
DECLASSIFIED
SECRET/SENSITIVE
E.O. 12958, SEC. 3.5
NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES
BY
Wa
NARA, DATE 3/9/04
FROM:
BRITISH EMBASSY
THE HON.
WASHINGTON, D.C. 20008
SIR PETER RAMSBOTHAM KCMG
TELEPHONE: (202) 462-1340
30 December 1974
President Gerald R Ford
President of the United States
of America
The White House
Washington DC
77 dear n resident )-
The British Prime Minister, Mr Harold Wilson,
has asked me to forward to you a personal message
from him, which is enclosed herewith.
Soun sencerely
Peter Ram between
(Peter Ramsbotham)
110
Jim Callaghan and I are looking forward very much to our
visit to Washington at the end of next month, when we hope to
be able to discuss all the major issues confronting the
Western world. However, I felt it would not be right to wait
until then to share with you one particular anxiety I have.
As you will know we have all been watching with close
attention your efforts to minimise unemployment while continuing
to fight inflation. Of these two grave threats to our economies
- and ultimately perhaps to our cohesion and our institutions -
the former seems to us to be growing more serious.
To a major extent the decline in activity and growth which
is taking place is certainly attributable to the five-fold
increase in world oil prices, which has taken huge sums of
money out of the normal circulation and put it into the
reserves of a few governments. This deflationary impact is
thus one aspect of the complex of financial, economic, energy
and trade problems which the action of the oil producers has
set us. All of them need to be tackled by co-operative effort,
and your Administration has given invaluable leads in this
direction. It is, I think, no less true in this economic
aspect than in the others that we all need to have continuously
in mind the effect on others of our own actions and policies.
We in the United Kingdom have thought it right against
this background to stimulate activity and many of our
DECLASSIFIED
E.O. 12958, Sec. 3.5
State Dept. Guidelines
/European
By
, NARA, Date 3/9/04
European allies are doing the same. Each one of us by doing
so helps to avert a socially dangerous build-up of unemployment
within his own country and at the same time helps to maintain
international activity and to reduce the temptation for the
more hard pressed countries to fall back into measures of a
protectionist nature.
But the US is the motor of the industrial world: and if
the motor fails then the rest of us will inevitably come to
a halt. The published indicators which have come out in the
last few weeks have successively shown a picture of a motor
which is indeed slowing down. The recession now looks likely
to be deeper and longer than had been expected and I understand
that even the more optimistic forecasters do not now expect
any significant upturn before the second half of 1975.
It is right to let you know that for us in Britain, and
no doubt for many others, this is a deeply worrying prospect.
The confidence of business, the support of labour for domestic
economic policies of freedom from restriction in international
trade all depend on the conviction that all our governments
will act to prevent recession from deepening into depression.
I look forward to discussing all this with you and
telling you something of how we are tackling our problems in
Britain, but wanted to express my concern now because I know
that you will be thinking about economic matters in the next
week or two.
30 December 1974
MEMORANDUM
THE WHITE HOUSE
INFORMATION
WASHINGTON
December 31, 1974
TALLISNTS/LS
MEMORANDUM FOR:
THE PRESIDENT
FROM:
BRENT SCOWCROFT HAR
SUBJECT:
Message from Prime Minister Wilson
on U.S. Economy
Prime Minister Wilson has sent you a message (Tab A) to share
with you his anxiety over the growing worldwide unemployment problem
and the impact that the U.S. recession is having on it. He notes
specifically that he wanted you to have the benefit of his views during
your consideration of U.S. economic policy.
Wilson feels that your Administration has provided invaluable
leadership to international efforts to deal with complex financial,
economic, energy and trade problems. But because he believes
that the U.S. is "the motor of the industrialized world, 11 Wilson is
worried that the fact that our economic slowdown is contributing to
serious unemployment in the UK and elsewhere and to global recession
despite the attempts of the UK and other Europeans to stimulate
economic activity in their countries. Wilson wants to avert a
socially dangerous buildup of domestic unemployment and to reduce
the temptation for the most hard pressed countries to fall back into
protectionist measures. He believes that it is necessary for all
western governments to act to prevent recession from deepening
into depression in order to improve the confidence of business and
to avoid protectionist pressures.
A proposed response to the Prime Minister is being staffed separately
and will be forwarded to you shortly.
DECLASSIFIED
E.O. 12958, SEC. 3.5
SEGRET/SENSITIVE
NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES 3/9/04
B
6389X Retype BS:mb 1/2/75
INFORMATION
December 31, 1974
SEGRET/SENSITIVE
MEMORANDUM FOR: THE PRESIDENT
FROM:
HENRY A. KISSINGER
SUBJECT:
Message from Prime Minister Wilson
on U.S. Economy
Prime Minister Wilson has sent you a message (Tab A) to share
with you his anxiety over the growing worldwide unemployment problem
and the impact that the U.S. recession is having on it. He notes
specifically that he wanted you to have the benefit of his views during
your consideration of U.S. economic policy.
Wilson feels that your Administration has provided invaluable
leadership to international efforts to deal with complex financial,
economic, energy and trade problems. But because he believes
that the U.S. is "the motor of the industrialized world," Wilson is
worried about the fact that our economic slowdown is contributing to
serious unemployment in the UK and elsewhere and to global recession
despite the attempts of the UK and other Europeans to stimulate
economic activity in their countries. Wilson wants to avert a
socially dangerous buildup of domestic unemployment and to reduce
the temptation for the most hard pressed countries to fall back into
protectionist measures. He believes that it is necessary for all
western governments to act to prevent recession from deepening
into depression in order to improve the confidence of business and
to avoid protectionist pressures.
A proposed response to the Prime Minister is being staffed separately
and will be forwarded to you shortly.
your
de
DECLASSIFIED
E.O. 12958, SEC. 3.5
GERALD
AMERICA
NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES
SEGRET/SENSITIVE
BY Wa
, NARA, DATE 3/9/04
45
6389X Retype BS:mb 1/2/75
INFORMATION
December 31, 1974
SECRET/SENSITIVE
MEMORANDUM FOR:
THE PRESIDENT
FROM:
HENRY A. KISSINGER
SUBJECT:
Message from Prime Minister Wilson
on U.S. Economy
Prime Minister Wilson has sent you a message (Tab A) to share
with you his anxiety over the growing worldwide unemployment problem
and the impact that the U.S. recession is having on it. He notes
specifically that he wanted you to have the benefit of his views during
your consideration of U.S. economic policy.
Wilson feels that your Administration has provided invaluable
leadership to international efforts to deal with complex financial,
economic, energy and trade problems. But because be believes
that the U.S. is "the motor of the industrialized world,' Wilson is
worried about the fact that our economic slowdown is contributing to
serious unemployment in the UK and elsewhere and to global recession
despite the attempts of the UK and other Europeans to stimulate
economic activity in their countries. Wilson wants to avert a
socially dangerous buildup of domestic unemployment and to reduce
the temptation for the most hard pressed countries to fall back into
protectionist measures. He believes that it is necessary for all
western governments to act to prevent recession from deepening
into depression in order to improve the confidence of business and
to avoid protectionist pressures.
A proposed response to the Prime Minister is being staffed separately
and will be forwarded to you shortly.
FORD
DECLASSIFIED
&
E.O. 12958, SEC. 3.5
SEGRET/SENSITIVE
NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES
BY Wa
, NARA, DATE 3/9/04
OBRALD
LIBRARY
6389X Retype BS:mb 1/2/75
INFORMATION
December 31, 1974
SEGAET/SENSITIVE
MEMORANDUM FOR:
THE PRESIDENT
FROM:
HENRY A. KISSINGER
SUBJECT:
Message from Prime Minister Wilson
on U.S. Economy
Prime Minister Wilson has sent you a message (Tab A) to share
with you his anxiety over the growing worldwide unemployment problem
and the impact that the U.S. recession is having on it. He notes
specifically that be wanted you to have the benefit of his views during
your consideration of U.S. economic policy.
Wilson feels that your Administration has provided invaluable
leadership to international efforts to deal with complex financial,
economic, energy and trade problems. But because be believes
that the U.S. is "the meter of the industrialised world," Wilson is
worried about the fact that our economic slowdown is contributing to
serious unemployment in the UK and elsewhere and to global recession
despite the attempts of the UK and other Europeans to stimulate
economic activity in their countries. Wilson wants to avert a
socially dangerous buildup of domestic unemployment and to reduce
the temptation for the most hard pressed countries to fall back into
protectionist measures. He believes that it is necessary for all
western governments to act to prevent recession from deepening
into depression in order to improve the confidence of business and
to avoid protectionist pressures.
A preposed response to the Prime Minister is being staffed separately
and will be forwarded to you shortly.
DECLASSIFIED
GRALD * FORD
SEGRET/SENSITIVE
E.O. 12958, SEC. 3.5
NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES
BY. labe
# NARA, DATE 3/9/04
6389X Retype BS:mb 1/2/75
INFORMATION
December 31, 1974
SECRET/SENSITIVE
MEMORANDUM FOR: THE PRESIDENT
FROM:
HENRY A. KISSINGER
SUBJECT:
Message from Prime Minister Wilson
on U.S. Economy
Prime Minister Wilson has sent you a message (Tab A) to share
with you his anxiety over the growing worldwide unemployment problem
and the impact that the U.S. recession is having on it. He notes
specifically that be wanted you to have the benefit of his views during
your consideration of U.S. economic policy.
Wilson feels that your Administration has provided invaluable
leadership to international efforts to deal with complex financial,
economic, energy and trade problems. But because be believes
that the U.S. is "the metor of the industrialized world," Wilson is
worried about the fact that our economic slowdown is contributing to
serious unemployment in the UK and elsewhere and to global recession
despite the attempts of the UK and other Europeans to stimulate
economic activity in their countries. Wilson wants to avert a
socially dangerous buildup of domestic unemployment and to reduce
the temptation for the most hard pressed countries to fall back into
protectionist measures. He believes that it is necessary for all
western governments to act to prevent recession from deepening
into depression in order to improve the confidence of business and
to avoid protectionist pressures.
A preposed response to the Prime Minister is being staffed separately
and will be forwarded to you shortly.
rune
of
DECLASSIFIED
GENALD
VIDRARY
E.O. 12958, SEC. 3.5
EGRET/SENSITIVE
NSC MEMO, 11/04/98, STATE DEPT. GUIDELINES
BY. Ma
, MARA, DATE 3/9/04
Kathy. : Jyd -The
bypassed you on
12/31 - Marilyn
6389X
4V
SECRET
ACTION
MEMORANDUM FOR GENERAL SCOWCROFT
FROM:
Robert D. Hormats
A. Denis Clift
SUBJECT:
Message to President from Prime Minister Wilson
The information memorandum for your signature to the President at Tab
I would forward Prime Minister Wilson's message of December 30 on
the economy.
Your memorandum notes that a proposed reply to the Prime Minister
is being staffed separately.
RECOMMENDATION
That you sign the memorandum for the President at Tab I
SEGRET
DECLASSIFIED
E.O. 12958, SEC. 3.5
FORD LIBRARY è OERALD
NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES
BY Cabe
, NARA, DATE 3/9/04
FORD
GERALD ?
LIBRARY
HX
INFORMATION
December 31, 1974
SECRET/SENSITIVE
MEMORANDUM FOR: THE PRESIDENT
FROM:
BRENT SCOWCROFT
SUBJECT:
Message from Prime Minister Wilson
on U.S. Economy
Prime Minister Wilson has sent you a message (Tab A) to share
with you his anxisty over the growing worldwide unemployment problem
and the impact that the U.S. recession is having on it. He notes
specifically that be wanted you to have the benefit of his views during
your consideration of U.S. economic policy.
Wilson feels that your Administration has provided invaluable
leadership to international efforts to deal with complex financial,
economic, energy and trade problems. But because be believes
that the U.S. is "the motor of the industrialised world," Wilson is
worried that the fact that our economic slowdown is contributing to
serious unemployment in the UK and elsewhere and to global recession
despite the attempts of the UK and other Europeans to stimulate
economic activity in their countries. Wilson wants to avert a
socially dangerous buildup of domestic unemployment and to reduce
the temptation for the most hard pressed countries to fall back into
protectionist measures. He believes that it is necessary for all
western governments to act to prevent recession from deepening
into depression in order to improve the confidence of business and
to avoid protectionist pressures.
A preposed response to the Prime Minister is being staffed separately
and will be forwarded to you shertly.
2000
&
DECLASSIFIED
SEGRET/SENSITIVE
E.O. 12958, SEC. 3.5
NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES
GERALD
LIBRAR
BY, ha
I NARA, DATE 3/9/04
GERALD "
1000
4
ANVUSIA
112
2
FROM:
BRITISH EMBASSY
THE HON.
WASHINGTON, D.C. 20008
SIR PETER RAMSBOTHAM KCMG
TELEPHONE: (202) 462-1340
30 December 1974
President Gerald R Ford
President of the United States
of America
The White House
Washington DC
77 dear M President
The British Prime Minister, Mr Harold Wilson,
has asked me to forward to you a personal message
from him, which is enclosed herewith.
Soun sincerely
later Ram between
(Peter Ramsbotham)
FORD
LIBRARY &
Jim Callaghan and I are looking forward very much to our
visit to Washington at the end of next month, when we hope to
be able to discuss all the major issues confronting the
Western world. However, I felt it would not be right to wait
until then to share with you one particular anxiety I have.
As you will know we have all been watching with close
attention your efforts to minimise unemployment while continuing
to fight inflation. Of these two grave threats to our economies
- and ultimately perhaps to our cohesion and our institutions -
the former seems to us to be growing more serious.
To a major extent the decline in activity and growth which
is taking place is certainly attributable to the five-fold
increase in world oil prices, which has taken huge sums of
money out of the normal circulation and put it into the
reserves of a few governments. This deflationary impact is
thus one aspect of the complex of financial, economic, energy
and trade problems which the action of the oil producers has
set'us. All of them need to be tackled by co-operative effort,
and your Administration has given invaluable leads in this
DECLASSIFIED
B.O. 12958, Sec. 3.5
State Dept. Guidelines
NARA, Date 3/9/04
direction. It is, I think, no less true in this economic
aspect than in the others that we all need to have continuously
in mind the effect on others of our own actions and policies.
We in the United Kingdom have thought it right against
this background to stimulate activity and many of our
/European
European allies are doing the same. Each one of us by doing
so helps to avert a socially dangerous build-up of unemployment
within his own country and at the same time helps to maintain
international activity and to reduce the temptation for the
more hard pressed countries to fall back into measures of a
protectionist nature.
But the US is the motor of the industrial world: and if
the motor fails then the rest of us will inevitably come to
a halt. The published indicators which have come out in the
last few weeks have successively shown a picture of a motor
which is indeed slowing down. The recession now looks likely
to be deeper and longer than had been expected and I understand
that even the more optimistic forecasters do not now expect
any significant upturn before the second half of 1975.
It is right to let you know that for us in Britain, and
no doubt for many others, this is a deeply worrying prospect.
The confidence of business, the support of labour for domestic
economic policies of freedom from restriction in international
trade all depend on the conviction that all our governments
will act to prevent recession from deepening into depression.
I look forward to discussing all this with you and
telling you something of how we are tackling our problems in
Britain, but wanted to express my concern now because I know
that you will be thinking about economic matters in the next
week or two.
30 December 1974
Redo
4BB
6389x
THE WHITE HOUSE
WASHINGTON
Dear Mr. Prime Minister:
I was pleased to receive your message of December 30,
1974, and to have the benefit of your thinking about the
policies I am now developing and will announce later this
month. We are in total agreement on the importance of
avoiding a build up of unemployment and a worsening of
the present recession.
The United States and Great Britain have in recent months
been struggling with the major issues of unemployment
and inflation as have our colleagues elsewhere in Western
Europe and in Japan. There are, as we both know, no
easy answers to these difficulties; but it is clear that we
should not address one part of the problem while ignoring
the other. Each country must act consistent with its pri-
orities and its particular economic circumstances; each
must choose the blend of policies which it considers most
suitable. We had expected that the policies I announced
last October would bring about a slowdown in our inflation
without worsening the recession. But we had also recog-
nized that any policy initiated at that time required continued
scrutiny so that necessary adjustments could be made if the
need arose.
We are now in the process of reassessing the state of our
economy. We do so with a view not only to the needs of
the United States but also to the impact of our policies upon
other countries. In my discussions with Chancellor Schmidt,
President Giscard d'Estaing, Prime Minister Trudeau and
others, I have strongly emphasized the importance we attach
to implementing policies which contribute to, rather than harm,
the economic well-being of other countries. The policies we
are now developing will, in our view, meet this test. They
rund
2
will deal directly with the economic slowdown we now face
without triggering major inflationary pressures which might
result from an overly expansionary policy.
I expect that Secretary Simon will be briefing Chancellor
Healey on some aspects of these policies during his coming
visit to the U.S. I also expect we will brief your Embassy
prior to announcement. Your visit will enable us to discuss
these issues in greater detail.
I very much look forward to seeing you later this month.
Sincerely,
The Right Honorable
Harold Wilson
Prime Minister
London
MCC
MEMORANDUM
6389-X (followup)
NATIONAL SECURITY COUNCIL
SECRET/SENSITIVE
ACTION
January 7, 1975
MEMORANDUM FOR: SECRETARY KISSINGER
FROM:
ROBERT HORMATS RH
SUBJECT:
Response to Message from Prime
Minister Wilson
At Tab A is a proposed letter from the President replying to Prime
Minister Wilson's message of concern about the adverse international
impact of the U.S. recession. The reply indicates that the President
shares Wilson's concern about recession and unemployment and that
his new policies will deal directly with these problems without seriously
worsening inflation.
I have coordinated with Denis Clift in the drafting of this response. But,
because of the pro forma character of its economic aspects and the
private nature of the message, I have not felt it necessary to show it to
the speech writers or other economic types in the White House. If you
wish me to do so, I shall. A copy of Brent Scowcroft's earlier memo-
randum to the President summarizing Wilson's message is at Tab B.
RECOMMENDATION:
That you sign the memorandum for the President at Tab 1.
Concurrence:
Mr. Clift
an
DECLASSIFIED
E.O. 12958, SEC. 3.5
SECRET/SENSITIVE
NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES
BY bh
, NARA, DATE 3/9/04
HDD
MEMORANDUM
6389-X followup
THE WHITE HOUSE
WASHHINGTON
SEGRET/SENSITIVE
ACTION
MEMORANDUM FOR:
THE PRESIDENT
FROM:
HENRY A. KISSINGER
SUBJECT:
Response to Message from Prime
Minister Wilson
Prime Minister Wilson's message, summarized in Brent Scowcroft's
memorandum of December 31 (Tab B), expresses concern about the
adverse impact which the U.S. recession is having on his country's
economy and throughout the world. At Tab A is a proposed response
from you to the Prime Minister indicating that you share his concern
over unemployment and recession, that you are in the process of
developing new policies which will address this issue without triggering
major inflationary pressures, and that you look forward to discussing
these issues in greater detail during his upcoming visit.
RECOMMENDATION:
That you sign the letter to Prime Minister Wilson at Tab A.
DECLASSIFIED
E.O. 12958, SEC. 3.5
SECRET/SENSITIVE
BY. We
NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES
, NARA, DATE 3/9/04
HEE
THE WHITE HOUSE
WASHINGTON
Dear Mr. Prime Minister:
I was pleased to receive your message of December 30
and to have benefit of your thinking during development of
the policies I shall announce later this month. We are in
total agreement about the importance of avoiding a build up
of unemployment and a worsening of the present recession.
Both the United States and Great Britain have in recent
months been struggling with the major issues of unemploy-
ment and inflation as have our colleagues elsewhere in
Western Europe and in Japan. There are, as we both know,
no easy answers to these difficulties; but it is clear that we
cannot address one part of the problem while ignoring the
other. Each country must act consistent with its priorities
and its particular economic circumstances, and must choose
the blend of policies which it considers most suitable. We
had expected that the policies I announced last October would
bring about a slowdown in our inflation without worsening
the recession. But we had also recognized that any policy
put forward at that time required continued scrutiny so that
necessary adjustments could be made if the need arose.
We are now in the process of assessing the state of our
economy. We do so with a view not only to the needs of the
United States but also to the impact of our policies upon
other countries. In my discussions with Chancellor Schmidt,
President Giscard d'Estaing, Prime Minister Trudeau and
others, I have strongly emphasized the importance we attach
to implementing policies which contribute to, rather than harm,
the economic well-being of other countries. The policies we
are now developing will, in our view, meet this test. They
2
will deal directly with the economic slowdown we are now
facing without triggering the major inflationary pressures
which might result from an overly expansionary policy.
I expect that Secretary Simon will be briefing Chancellor
Healey on some aspects of these policies during his coming
visit to the U.S. I also expect we will be able to brief your
Embassy prior to announcement. Your visit will enable us
to discuss these issues in greater detail.
I very much look forward to seeing you later this month.
Sincerely,
The Right Honorable
Harold Wilson
Prime Minister
London
6389X
IFF
ACTION
December 31, 1974
SEGRET /SENSITIVE
MEMORANDUM FOR:
THE PRESIDENT
FROM:
BRENT SCOWCROFT
SUBJECT:
Message from Prime Minister Wilson
on U.S. Economy
Prime Minister Wilson has sent you a message (Tab A) to share
with you his anxiety over the growing worldwide unemployment problem
and the impact that the U.S. recession is having on it. He notes
specifically that he wanted you to have the benefit of his views during
your consideration of U.S. economic policy.
Wilson feels that your Administration has provided invaluable
leadership to aternational efforts to deal with complex financial,
economic, energy and trade problems. But because he believes
that the U.S. is "the motor of the industrialized world, 11 Wilson is
worried that the fact that our economic slowdown is contributing to
serious unemployment in the UK and elsewhere and to global recession
despite the attempts of the UK and other Europeans to stimulate
economic activity in their countries. Wilson wants to avert a
socially dangerous buildun of domestic unemployment and to reduce
the temptation for the most hard pressed countries to fall back into
protectionist measures. He believes that it is necessary for all
western governments to act to prevent recession from deepening
into depression in order to improve the confidence of business and
to avoid protectionist pressures.
A proposed response to the Prime Minister is being staffed separately
and will be forwarded to you snortly.
DECLASSIFIED
SECRET /SENSITIVE
E.O. 12958, SEC. 3.5
NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES
GERALD
BY lab
, NARA, DATE 3/9/04
BRITISH EMBASSY
FROM:
WASHINGTON. D.C. 20008
THE HON
SIR PETER RAMSBOTHAM KCMG
TELEPHONE: (202) 462-1340
30 December 1974
President Gerald R Ford
President of the United States
of America
The White House
Washington DC
77 dear M President
The British Prime Minister, Mr Harold Wilson,
has asked me to forward to you a personal message
from him, which is enclosed herewith.
JUL sincerely
Peter Ram between
(Peter Ramsbotham)
4HH
Jim Callaghan and I are looking forward very much to our
visit to Washington at the end of next month, when we hope to
be able to discuss all the major issues confronting the
Western world. However, I felt it would not be right to wait
until then to share with you one particular anxiety I have.
As you will know we have all been watching with close
attention your efforts to minimise unemployment while continuing
to fight inflation. Of these two grave threats to our economies
- and ultimately perhaps to our cohesion and our institutions -
the former seems to us to be growing more serious.
To a major extent the decline in activity and growth which
is taking place is certainly attributable to the five-fold
increase in world oil prices, which has taken huge sums of
money out of the normal circulation and put it into the
reserves of a few governments. This deflationary impact is
thus one aspect of the complex of financial, economic, energy
and trade problems which the action of the oil producers has
set us. All of them need to be tackled by co-operative effort,
DECLASSIFIED
E.O. 12958, Sec. 3.5
State Dept. Guidelines
NARA, Date 3/9/04
and your Administration has given invaluable leads in this
direction. It is, I think, no less true in this economic
aspect than in the others that we all need to have continuously
in mind the effect on others of our own actions and policies.
We in the United Kingdom have thought it right against
this background to stimulate activity and many of our
/European
European allies are doing the same. Each one of us by doing
so helps to avert a socially dangerous build-up of unemployment
within his own country and at the same time helps to maintain
international activity and to reduce the temptation for the
more hard pressed countries to fall back into measures of a
protectionist nature.
But the US is the motor of the industrial world: and if
the motor fails then the rest of us will inevitably come to
a halt. The published indicators which have come out in the
last few weeks have successively shown a picture of a motor
which is indeed slowing down. The recession now looks likely
to be deeper and longer than had been expected and I understand
that even the more optimistic forecasters do not now expect
any significant upturn before the second half of 1975.
It is right to let you know that for us in Britain, and
no doubt for many others, this is a deeply worrying prospect.
The confidence of business, the support of labour for domestic
economic policies of freedom from restriction in international
trade all depend on the conviction that all our governments
will act to prevent recession from deepening into depression.
I look forward to discussing all this with you and
telling you something of how we are tackling our problems in
Britain, but wanted to express my concern now because I know
that you will be thinking about economic matters in the next
week or two.
30 December 1974
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