CONFIDENTIAL POSS DUPE PAGE 01 PARIS 10319 291824Z 66 ACTION EUR-25 INFO OCT-01 EA-11 ISO-00 SWF-02 AID-20 CEA-02 CIAE-00 COME-00 EB-11 FRB-02 INR-10 NSAE-00 RSC-01 CIEP-02 SP-03 STR-08 TRSE-00 LAB-06 SIL-01 SAM-01 OMB-01 PA-04 PRS-01 USIA-15 SS-20 NSC-07 DRC-01 /155 W --------------------- 102169 R 291436Z APR 74 FM AMEMBASSY PARIS TO SECSTATE WASHDC 8700 INFO AMEMBASSY BONN AMEMBASSY BRUSSELS AMEMBASSY THE HAGUE AMEMBASSY LONDON AMEMBASSY ROME AMEMBASSY TOKYO USMISSION EC BRUSSELS USMISSION OECD PARIS C O N F I D E N T I A L PARIS 10319 PASS TREASURY AND FEDERAL RESERVE E.O. 11652: GDS TAGS: EFIN, FR SUBJECT: EC PROPOSALS ON GOLD REF: THE HAGUE 2042 1. BROSSOLETTE, DIRECTOR OF TREASURY IN FRENCH FINANCE MINISTRY, HAS COMMENTED BRIEFLY TO US ON POSITION REACHED ON GOLD AT ZEIST MEETING OF EC FINANCE MINISTERS APRIL 22-23. BROSSOLETTE, TOGETHER WITH BANK OF FRANCE GOVERNOR WORMSER, REPRESENTED FRANCE IN ABSENCE OF FINANCE MINISTER GISCARD D'ESTAING. 2. BROSSOLETTE'S DESCRIPTION OF EC POSITION TALLIES CONFIDENTIAL CONFIDENTIAL PAGE 02 PARIS 10319 291824Z WITH THAT CONTAINED IN REFTEL. HE SAID THAT AS REGARDS TRANSACTIONS OF CENTRAL BANKS ON OPEN MARKET, GROUP HAD ENVISAGED POSSIBILITY OF MECHANISM WHEREBY A COM- MITTEE OF CENTRAL BANK GOVERNORS WOULD PERIODICALLY FIX UPPER AND LOWER LIMITS ON PRICES AT WHICH SUCH TRANSACTIONS COULD TAKE PLACE. PURPOSE OF THIS DEVICE WOULD BE TO TRY TO DAMPEN FLUCTUATIONS IN MARKET GOLD PRICE. 3. BROSSOLETTE SAID FRENCH WERE NOT HAPPY WITH PRO- VISO INSERTED AT BRITISH AND DUTCH INSISTENCE THAT THERE SHOULD BE NO NET ACQUISITION OF GOLD BY ANY ONE CENTRAL BANK FROM MARKET OVER COURSE OF YEAR. WHILE THEY HAD FINALLY ACQUIESCED IN THIS FEATURE, THEY FELT IT WOULD BE EXCEEDINGLY COMPLICATED TO ENFORCE. THEY ALSO FELT PROVISO WAS NOT NECESSARY TO MAKE IT CLEAR THAT EC PROPOSAL WAS NOT DESIGNED TO PUT GOLD BACK INTO CENTER OF MONETARY SYSTEM. BROSSOLETTE ARGUED THAT IT WOULD TAKE A LOT MORE THAN AN AGREEMENT RE CENTRAL BANK TRANSACTIONS IN GOLD TO DO THAT. 4. BROSSOLETTE SAID EUROPEANS FELT GOLD QUESTION WAS OF SOME URGENCY, BECAUSE OF ITALIAN NEED TO COVER FOREIGN EXCHANGE DEFICIT. IF INTERNATIONAL UNDER- STANDING COULD BE WORKED OUT ON GOLD, BANK OF FRANCE WOULD BE PREPARED TO ENTER INTO A TOKEN TRANSACTION WITH BANK OF ITALY -- FOR, SAY, $10 MILLION -- TO DEMONSTRATE WORKABILITY OF ARRANGEMENT. IRWIN CONFIDENTIAL NNN

--- Capture Date: 01 JAN 1994 Channel Indicators: n/a Current Classification: UNCLASSIFIED Concepts: MINISTERIAL MEETINGS, BANKERS, GOLD CRISIS, FOREIGN EXCHANGE RATES, VISITS, GOLD TRANSACTIONS Control Number: n/a Copy: SINGLE Draft Date: 29 APR 1974 Decaption Date: 01 JAN 1960 Decaption Note: n/a Disposition Action: RELEASED Disposition Approved on Date: n/a Disposition Authority: golinofr Disposition Case Number: n/a Disposition Comment: 25 YEAR REVIEW Disposition Date: 28 MAY 2004 Disposition Event: n/a Disposition History: n/a Disposition Reason: n/a Disposition Remarks: n/a Document Number: 1974PARIS10319 Document Source: CORE Document Unique ID: '00' Drafter: n/a Enclosure: n/a Executive Order: GS Errors: N/A Film Number: D740102-0031 From: PARIS Handling Restrictions: n/a Image Path: n/a ISecure: '1' Legacy Key: link1974/newtext/t1974046/aaaaaeto.tel Line Count: '88' Locator: TEXT ON-LINE, ON MICROFILM Office: ACTION EUR Original Classification: CONFIDENTIAL Original Handling Restrictions: n/a Original Previous Classification: n/a Original Previous Handling Restrictions: n/a Page Count: '2' Previous Channel Indicators: n/a Previous Classification: CONFIDENTIAL Previous Handling Restrictions: n/a Reference: THE HAGUE 2042 Review Action: RELEASED, APPROVED Review Authority: golinofr Review Comment: n/a Review Content Flags: n/a Review Date: 01 APR 2002 Review Event: n/a Review Exemptions: n/a Review History: RELEASED <01 APR 2002 by boyleja>; APPROVED <11 JUN 2002 by golinofr> Review Markings: ! 'n/a US Department of State EO Systematic Review 30 JUN 2005 ' Review Media Identifier: n/a Review Referrals: n/a Review Release Date: n/a Review Release Event: n/a Review Transfer Date: n/a Review Withdrawn Fields: n/a Secure: OPEN Status: NATIVE Subject: EC PROPOSALS ON GOLD TAGS: EFIN, FR, US To: STATE Type: TE Markings: Declassified/Released US Department of State EO Systematic Review 30 JUN 2005