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- 2 - studied after World War I. The kind of things where people go and put the Eurpean philosophy anyway - to put things under the lid you know for better days. But I think what really transpired was that when the United States devaluated within a matterx of few days that the speculators were told the German A lot of people made some very fast money in Europe and at the same time coming 14 months after the first devaluation it destroyed the credibility of the dollar. And today the first franc was aquoted 25. 5 percent over the dollar. K: So it was a mistake to devalue. B: I think it was a great mistake yes. But of course you understand that Mr. Schultz and I have never seen eye to eye on anything and this goes back to the time that I was at the White House with him and John Ehrlichman and Jim Roche (??) who was chairman of General Motors at that time. And I guess - you know - it is just a question of practicability and philosophy. I could always under- stand in view of these things ifx in your practicability in the things that you did, but I find it very hard to understand his logic. I didn't understand it at that time and he didn't understand me when I warned him about the Japanese threat( Because I did warn him about it he thought that it was Japanese obsession on my part. Jim Roche will remember that very well. K: Do you think the Japanese were deliberately doing this? B: Doing what: K: Deliberately contributing to this run on the dollar? B: No, definitely not. think they are the principal cause of it because of the balance of payments deficit that the United States is stuck with (???) The print principal amount has come from Japan - 1/2 billion last year. And that - there were two things that happened. The combination of the announcement on a very untimely basis of phase III, together with a report of another record in the of the United States vizaviz foreign countries (?) The major major part of which was Japan's - a small part of which was Europe, very small and some part of it which was Canadian X which is not too important, but the combination of the announcement of Phase III together with the announcement of that grave(1 deficit created a pure panic in Europe which was underlined and stimulated by the Italians who were running out of their currency at the timex into Switzerland and converting into dollars and then the dollars were being converted into German marks. Now of course there is a tremendous pool of Europe, Bonn money over here that

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    "ocrText": "- 2 -\nstudied after World War I. The kind of things where people go and\nput the Eurpean philosophy anyway - to put things under the lid you\nknow for better days. But I think what really transpired was that\nwhen the United States devaluated within a matterx of few days that\nthe speculators were told the German\nA lot of people\nmade some very fast money in Europe and at the same time coming\n14 months after the first devaluation it destroyed the credibility of\nthe dollar. And today the first franc was aquoted 25. 5 percent over\nthe dollar.\nK:\nSo it was a mistake to devalue.\nB:\nI think it was a great mistake yes. But of course you understand\nthat Mr. Schultz and I have never seen eye to eye on anything and\nthis goes back to the time that I was at the White House with him\nand John Ehrlichman and Jim Roche (??) who was chairman of\nGeneral Motors at that time. And I guess - you know - it is just\na question of practicability and philosophy. I could always under-\nstand in view of these things ifx in your practicability in the things\nthat you did, but I find it very hard to understand his logic. I\ndidn't understand it at that time and he didn't understand me when\nI warned him about the Japanese threat( Because I did warn\nhim about it he thought that it was Japanese obsession on my part.\nJim Roche will remember that very well.\nK:\nDo you think the Japanese were deliberately doing this?\nB:\nDoing what:\nK:\nDeliberately contributing to this run on the dollar?\nB:\nNo, definitely not. think they are the principal cause of it because\nof the balance of payments deficit that the United States is\nstuck with (???) The print principal amount has come from Japan\n- 1/2 billion last year. And that - there were two things that\nhappened. The combination of the announcement on a very untimely\nbasis of phase III, together with a report of another record\nin the\nof the United States vizaviz foreign countries (?)\nThe major major part of which was Japan's - a small part of which\nwas Europe, very small and some part of it which was Canadian\nX which is not too important, but the combination of the announcement\nof Phase III together with the announcement of that grave(1 deficit\ncreated a pure panic in Europe which was underlined and stimulated\nby the Italians who were running out of their currency at the timex\ninto Switzerland and converting into dollars and then the dollars\nwere being converted into German marks. Now of course there\nis a tremendous pool of Europe, Bonn money over here that"
}