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British Petroleum Stock
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1988-12-31
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Ronald Reagan Presidential Library Digital Library Collections This is a PDF of a folder from our textual collections. Collection: Baker, Howard H. Folder Title: British Petroleum Stock Box: 1 To see more digitized collections visit: https://reaganlibrary.gov/archives/digital-library To see all Ronald Reagan Presidential Library inventories visit: https://reaganlibrary.gov/document-collection Contact a reference archivist at: [email protected] Citation Guidelines: https://reaganlibrary.gov/citing Withdrawal/Redaction Sheet Ronald Reagan Library Case: 1078 Archivist: Kelly Barton DOC TYPE DATE PAGES CLASS. CLOSED Memorandum 10/28/1987 01-15-2003 NSC #: WHORM Subject #: R 3/0/06 NLSF97 - 066/4 42 To: the President From: Howard Baker Subject: re phone call to Prime Minister Thatcher Restriction : FOIA(b)1 2 Memorandum ND 1 01-15-2003 NSC #: WHORM Subject #: R s "43 To: President From: H. Baker Subject: re phone call to Thatcher (draft of previous document) Restriction : FOIA(b)1 Memorandum 10/27/1987 1 01-15-2003 NSC #: WHORM Subject #: R n To: James Baker #44 From: David Mulford Subject: re memo to President Restriction : FOIA(b)1 COLLECTION: Baker, Howard H. Jr.: Files SERIES: I. Subject File TITLE: British Petroleum Stock OA/ID NUMBER: 1 BOX NUMBER: 1 Folder #: 8 of 17 Restriction Codes Presidential Records Act [44 U.S.C. 2204(a)] Freedom of Information Act [5] U.S.C. 552(b)] PRA-1 -National Security Classified Information. FOIA(b)(1) -National security classified information. PRA-2 -Relating to the appointment to Federal Office. FOIA(b)(2) -Release would disclose internal personnel rules PRA-3 -Release would violate a Federal statute. and practices of an agency. PRA-4 -Release would disclose trade secrets or confidential FOIA(b)(3) -Release would violate a Federal statute. commercial or financial information. FOIA(b)(4) -Release would disclose trade secrets PRA-5 -Release would disclose confidential advice between the or confidential or financial information. President and his advisors, or between such advisors. FOIA(b)(6) -Release would constitute a clearly PRA-6 -Release would constitute a clearly unwarranted invasion of unwarranted invasion of personal privacy. personal privacy. FOIA(b)(7) -Release would disclose information C. -Closed in accordance with restrictions contained compiled for law enforcement purposes. in donors' deed of gift. FOIA(b)(8) -Release would disclose information concerning PRM. -Closed as a personal record misfile. the regulation of financial institutions. FOIA(b)(9) -Release would disclose geological of geophysical information concerning wells. Page 1 DOC TYPE DATE PAGES CLASS. CLOSED 4 Talking Points/Briefing Paper NSC #: WHORM Subject #: R ND 3/4/06 1 NLST 97 066/4 01-15-2003 45 To: From: Subject: for President's use with Prime Minister Thatcher Restriction : FOIA(b)1 5 Memorandum ND 01 15-2003 NSC #: WHORM Subject #: R 10/25/10 F97-066/4#46 To: President From: James Baker Subject: re phone call to Prime Minister Thatcher Restriction : FOIA(b)1 6 Note/Notes 10/27/1987 01-15-2003 NSC #: WHORM Subject #: R 10/25/10 F97-066/4#47 To: Howard Baker From: James Baker Subject: note re attached revised memorandum Restriction : FOIA(b)1 7 Note/Notes ND 1 01-15-2003 NSC #: WHORM Subject #: R 10/25/10 F97-046/4#48 To: President From: James Baker Subject: re phone call to Prime Minister Thatcher (same document as item 5 in folder) Restriction : FOIA(b)1 COLLECTION: Baker, Howard H. Jr.: Files SERIES: I. Subject File TITLE: British Petroleum Stock OA/ID NUMBER: 1 BOX NUMBER: 1 Folder #: 8 of 17 Restriction Codes Presidential Records Act [44 U.S.C. 2204(a)] Freedom of Information Act [5 U.S.C. 552(b)] PRA-1 -National Security Classified Information. FOIA(b)(1) -National security classified information. PRA-2 -Relating to the appointment to Federal Office. FOIA(b)(2) -Release would disclose internal personnel rules PRA-3 -Release would violate a Federal statute. and practices of an agency. PRA-4 -Release would disclose trade secrets or confidential FOIA(b)(3) -Release would violate a Federal statute. commercial or financial information. FOIA(b)(4) -Release would disclose trade secrets PRA-5 -Release would disclose confidential advice between the or confidential or financial information. President and his advisors, or between such advisors. FOIA(b)(6) -Release would constitute a clearly PRA-6 -Release would constitute a clearly unwarranted invasion of unwarranted invasion of personal privacy. personal privacy. FOIA(b)(7) -Release would disclose information C. -Closed in accordance with restrictions contained compiled for law enforcement purposes. in donors' deed of gift. FOIA(b)(8) -Release would disclose information concerning PRM. -Closed as a personal record misfile. the regulation of financial institutions. FOIA(b)(9) -Release would disclose geological of geophysical information concerning wells. Page 2 DOC TYPE DATE PAGES CLASS. CLOSED 18 Talking Points/Briefing Paper ND 1 01-15-2003 NSC #: WHORM Subject #: R 3/20/06 NLSE97 0 66/4 #49 To: From: Subject: for President's use with Thatcher (same as item 4 in folder) Restriction : FOIA(b)1 9 Letter 10/22/1987 1 01-15-2003 NSC #: 7105 WHORM Subject #: To: Reagan From: Margaret Thatcher Subject: Restriction : FOIA(b)1 10 Letter 10-26-1987 05-01-2003 NSC #: 7105 WHORM Subject #: R 3/2/06 NISF97-06614 #! To: Frank Carlucci From: Anthony Acland Subject: re letters from Prime Minister to President Restriction : FOIA(b)1 COLLECTION: Baker, Howard H. Jr.: Files SERIES: I. Subject File TITLE: British Petroleum Stock OA/ID NUMBER: 1 BOX NUMBER: 1 Folder #: 8 of 17 Restriction Codes Presidential Records Act [44 U.S.C. 2204(a)] Freedom of Information Act [5 U.S.C. 552(b)] PRA-1 -National Security Classified Information. FOIA(b)(1) -National security classified information. PRA-2 -Relating to the appointment to Federal Office FOIA(b)(2) -Release would disclose internal personnel rules PRA-3 -Release would violate a Federal statute. and practices of an agency. PRA-4 -Release would disclose trade secrets or confidential FOIA(b)(3) -Release would violate a Federal statute. commercial or financial information. FOIA(b)(4) -Release would disclose trade secrets PRA-5 -Release would disclose confidential advice between the or confidential or financial information. President and his advisors, or between such advisors. FOIA(b)(6) -Release would constitute a clearly PRA-6 -Release would constitute a clearly unwarranted invasion of unwarranted invasion of personal privacy. personal privacy. FOIA(b)(7) -Release would disclose information C. -Closed in accordance with restrictions contained compiled for law enforcement purposes. in donors' deed of gift. FOIA(b)(8) -Release would disclose information concerning PRM. -Closed as a personal record misfile. the regulation of financial institutions. FOIA(b)(9) -Release would disclose geological of geophysical information concerning wells. Page 3 PENDING REVIEW IN ACCORDANCE WITH E.O. 13233 Ronald Reagan Library Collection Name BAKER, HOWARD: FILES Withdrawer SMF 4/24/2007 File Folder BRITISH PETROLEUM STOCK FOIA F97-066/4 Box Number 1 ID Doc Type Document Description No of Doc Date Pages 1 MEMO BAKER TO RR RE PHONE CALL TO PM 1 10/28/1987 THATCHER (F97-066/4 #42) 2 MEMO DRAFT OF #1 (F97-066/4 #43) 1 ND 4 TALKING FOR PRESIDENT'S USE WITH PM 1 ND POINTS THATCHER (F97-066/4 #45) 8 TALKING DUPLICATE OF #4 (F97-066/4 #49) 1 ND POINTS 5/20/09 60 /3 THE WHITE HOUSE WASHINGTON October 28, 1987 Action MEMORANDUM FOR THE PRESIDENT FROM: HOWARD H. BAKER, JR. SUBJECT: Phone Call to Prime Minister Thatcher Regarding the Issue of British Petroleum Stock The British Government presently has a $12 billion issue of shares of British Petroleum (BP) in international stock markets. This issue is in connection with its privatization program and was underwritten in all main markets at a price set before last week's decline in stock markets. BP stock is now down over 25%. I believe you should make a call to Prime Minister Thatcher asking the UK government to withdraw the BP issue from the market. We believe that if the issue is not withdrawn the effects on global markets will be highly negative and add further to the lack of confidence in international financial markets. A memo from Jim Baker recommending that you call Prime Minister Thatcher is attached. George Shultz has no objection. President Ford has contacted me to urge that you telephone Prime Minister Thatcher to seek withdrawal of the issue. Attachment DECLASSIFIED RE/EXSeD NLS NARA, DATE 3/2/06 THE WHITE HOUSE WASHINGTON Action MEMORANDUM FOR: THE PRESIDENT FROM: HOWARD H. BAKER SUBJECT: Phone Call to Prime Minister Thatcher Regarding the Issue of British Petroleum Stock The British Government presently has a $12 billion issue of shares of British Petroleum (BP) in international stock markets. This issue is in connection with its privatization program and was underwriten in all main markets at a price set before last week's decline in stock markets. BP stock is now down over 25%. I believe you should make a call to Prime Minister Thatcher asking the UK government to withdraw the BP issue from the market. We believe that if the issue is not withdrawn the effects on global markets will be highly negative and add further to the lack of confidence in international financial markets. A memo from Jim Baker recommending that you call Prime Minister Thatcher is attached. George Shultz has no objection. reservations about making the call but you should know that E President Ford has contacted me to urge that you telephone Prime Minister Thatcher to seek withdrawal of the issue. Attachment DECLASSIFIED /RE/ORSC) NLS F97+066/4 #43 3 NARA, DATE 3/2/06 Department Secretary Baker to of the Treasury Assistant Secretary room date 10/27/87 (Intemational Affairs) Subject: Memo to President Reagan Attached is a revised memorandum for the President on the British Petroleum issue. It has been revised* to remove specific references to U.S. losses, emphasizing instead the global losses that would result from this issue. We have revised the talking points to reflect this broader aspect of the problem. *in light of George Gould's discussions with the State Department aread David C. Mulford room 3432 phone 566-5363 DECLASSIFIED (Released NLS f97 066/4 444 Cis NARA, DATE 3/6/06 Talking Points for the President's Use with Prime Minister Thatcher on British Petroleum Issue and Possible Impact on World Financial Markets Would like to urge your Government to withdraw the BP issue. We believe it will have a major negative impact on world financial markets. The issue is already creating severe uncertainty in world markets - in Asia, Europe and North America. This is not the time to push forward with the largest equity issue ($12 billion) ever brought to market. The issue cannot be sold to final investors in the UK or elsewhere at prices anywhere near the price established 10 days ago with the underwriters. Close to half the issue has been underwritten by non-UK firms. If it goes forward, the issue will further damage already fragile world financial markets and work against restoration of confidence because of substantial losses involved. It will also reverberate in UK market for some time to come. If issue does take place, it will be resold into your secondary market, further depress prices. It seems to me this has gone beyond being a matter of underwriters standing up and accepting their commitments. We face an unprecedented situation in world financial markets which will also reverberate into the UK market. I understand the political considerations you face in withdrawing the issue, but it seems to me that forcing the issue into the market under current conditions will gravely damage the UK government's privatization program as well as damage and impede recovery in world financial markets. DECLASSIFIED /RE/EASIS) NLS F97-066-4-45 Gs NARA, DATE 3/20/06 1811 THE SECRETARY OF THE TREASURY WASHINGTON thi Action MEMORANDUM FOR: THE PRESIDENT FROM: JAMES A. BAKER, III SUBJECT: Phone Call to Prime Minister Thatcher regarding the issue of British Petroleum Stock The British government plans to issue shares in British Petroleum (BP) linked to its denationalization program. The price of these shares was fixed for underwriters before the sharp decline in world stock prices. Today's market price is 23 percent lower. If the shares are actually issued, underwriters all over the world will suffer very large losses estimated to be well over $2 billion (about half the issue is being underwritten by non-UK firms). The potential issue is creating heavy negative pressure and lack of confidence in international financial markets. It creates an unnecessary problem; -- It will result in unnecessary capital losses for major firms who would otherwise be supporting the market. -- Underwriters have asked the U.K. government to withdraw the issue under the force majeure clause. The U.K. government's decision must be made by October 29. I have telephoned Chancellor Lawson seeking to have the British Treasury stop the issue, which they have the power to do. The Federal Reserve Board has made similar efforts with the Bank of England. I recommend that you telephone Prime Minister Thatcher to underline the gravity and seriousness of issuing British Petroleum stock in the current world financial market situation. DECLASSIFIED NLRR F97-0166/4#46 BY RW NARA DATE 25/10 OF THE THE TRANTMENT The Secretary of the Treasury October 27, 1987 1789 NOTE FOR HOWARD H. BAKER, JR. Attached is a revised memorandum for the President on the British Petroleum issue. In light of our discussions with the State Department, it has been revised to remove specific references to U.S. losses, emphasizing instead the global losses that would result from this issue. The talking points have also been revised to reflect this broader aspect of the problem. We should touch base about this first thing tomorrow morning. JABIII DECLASSIFIED NLRR F97-066/4#47 BY RW NARA DATE 10/25/10 DEPARTMENT THE THE IREANIME THE SECRETARY OF THE TREASURY WASHINGTON 1789 Action MEMORANDUM FOR: THE PRESIDENT FROM: JAMES A. BAKER, III John SUBJECT: Phone Call to Prime Minister Thatcher regarding the issue of British Petroleum Stock The British government plans to issue shares in British Petroleum (BP) linked to its denationalization program. The price of these shares was fixed for underwriters before the sharp decline in world stock prices. Today's market price is 23 percent lower. If the shares are actually issued, underwriters all over the world will suffer very large losses estimated to be well over $2 billion (about half the issue is being underwritten by non-UK firms). The potential issue is creating heavy negative pressure and lack of confidence in international financial markets. -- It creates an unnecessary problem; -- It will result in unnecessary capital losses for major firms who would otherwise be supporting the market. -- Underwriters have asked the U.K. government to withdraw the issue under the force majeure clause. The U.K. government's decision must be made by October 29. I have telephoned Chancellor Lawson seeking to have the British Treasury stop the issue, which they have the power to do. The Federal Reserve Board has made similar efforts with the Bank of England. I recommend that you telephone Prime Minister Thatcher to underline the gravity and seriousness of issuing British Petroleum stock in the current world financial market situation. DECLASSIFIED NLRR F97-062/4#48 BY RW NARA DATE 10/25/10 Talking Points for the President's Use with Prime Minister Thatcher on British Petroleum Issue and Possible Impact on World Financial Markets Would like to urge your Government to withdraw the BP issue. We believe it will have a major negative impact on world financial markets. The issue is already creating severe uncertainty in world markets - in Asia, Europe and North America. This is not the time to push forward with the largest equity issue ($12 billion) ever brought to market. The issue cannot be sold to final investors in the UK or elsewhere at prices anywhere near the price established 10 days ago with the underwriters. Close to half the issue has been underwritten by non-UK firms. If it goes forward, the issue will further damage already fragile world financial markets and work against restoration of confidence because of substantial losses involved. It will also reverberate in UK market for some time to come. If issue does take place, it will be resold into your secondary market, further depress prices. It seems to me this has gone beyond being a matter of underwriters standing up and accepting their commitments. We face an unprecedented situation in world financial markets which will also reverberate into the UK market. O I understand the political considerations you face in withdrawing the issue, but it seems to me that forcing the issue into the market under current conditions will gravely damage the UK government's privatization program as well as damage and impede recovery in world financial markets. DECLASSIFIED (RE/DASO) NLS 97-066/4 #49 at Gs NARA, DATE 3/4/06 Case : 1078 Withdrawal/Redaction Sheet Ronald Reagan Library Document Number: 9 Date: 10/22/1987 Classification: Type: Letter Total Pages: 1 Closed: 01-15-2003 NSC #: 7105 WHORM Subject #: To: Reagan From: Margaret Thatcher Subject: Folder Collection: Baker, Howard H. Jr.: Files Series: I. Subject File Title: British Petroleum Stock OA ID: 1 Box Number: 1 Folder #: 8 OF 17 Restrictions FOIA(b)1 FOIA(b)1 Restriction Codes Presidential Records Act [44 U.S.C. 2204(a)] Freedom of Information Act [5 U.S.C. 552(b)] PRA-1 -National Security Classified Information. FOIA(b)(1) -National security classified information. PRA-2 -Relating to the appointment to Federal Office. FOIA(b)(2) -Release would disclose internal personnel rules PRA-3 -Release would violate a Federal statute. and practices of an agency. PRA-4 -Release would disclose trade secrets or confidential FOIA(b)(3) -Release would violate a Federal statute. commercial or financial information. FOIA(b)(4) -Release would disclose trade secrets PRA-5 -Release would disclose confidential advice between the or confidential or financial information. President and his advisors, or between such advisors. FOIA(b)(6) -Release would constitute a clearly PRA-6 -Release would constitute a clearly unwarranted invasion of unwarranted invasion of personal privacy. personal privacy. FOIA(b)(7) -Release would disclose information C. -Closed in accordance with restrictions contained compiled for law enforcement purposes. in donors' deed of gift. FOIA(b)(8) -Release would disclose information concerning PRM. -Closed as a personal record misfile. the regulation of financial institutions. FOIA(b)(9) -Release would disclose geological of geophysical information concerning wells. COVERING UK SECRET 7105 BRITISH EMBASSY. WASHINGTON. D.C. 20008 TELEPHONE: (202) 462-1340 FROM THE AMBASSADOR 26 October 1987 The Honorable Frank C Carlucci Assistant to the President for National Security Affairs The White House G/WW Washington DC 20503 Hea. I ank, I have been asked to forward the enclosed letters from the Prime Minister to the President. The text of the letter dated 22 October was sent to you by No 10 on their direct line. I should be grateful for your help in transmitting them to the President. Autory Antony Acland DECLASSIFIED /RE/CASO) NLS (97-066/4*51 CH NARA, DATE 3/10/06