Tuesday, April 9, 2013

Monetary gold wikileaks - 1973LONDON13568_b

PAGE 02 LONDON 13568 201707Z

MORE MEANINGFUL OFFICIAL GOLD PRICE.

3. CURRENT U.K. POSITION IS THAT GOLD SHOULD BE SEPARA- TED FROM SDR VALUATION. MONETARY AUTHORITIES SHOULD BE PERMITTED TO SELL BUT NOT TO PURCHASE GOLD IN THE FREE MARKET AT THIS TIME. THE U.K. HOPES THAT MONETARY AUTHORITIES WILL NOT NEED TO MAKE PROVISION FOR SETTLEMENT IN GOLD BETWEEN EACH OTHER. LOOKING AHEAD, HOWEVER, U.K. TREASURY OFFICIALS QUESTION REALISM OF EXPECTING TO PREVENT SETTLEMENT IN GOLD BETWEEN CENTRAL BANKS, ESPECIALLY IF THIS CAN BE NEGOTIATED AS PART OF THE OVER- ALL INTERNATIONAL MONETARY REFORM PACKAGE.

 4. U.K. CLAIMS THAT IT IS NOT IN THE LEAD ON THIS POINT. THERE IS MUCH DISCUSSION OF IT IN EC, WITH ITALIANS, NOT FRENCH, PRESSING FOR PROVISION FOR SETTLE- MENT IN GOLD BETWEEN MONETARY AUTHORITIES AT OR NEAR FREE MARKET PRICE. ITALIANS REPORTEDLY ARE HEAVILY IN- FLUENCED BY THE LEVEL OF THEIR OWN RESERVES. THEY MAY FORESEE HAVING TO USE SOME OF THEIR GOLD STOCK IN SETTLEMENT. PRESSURE FOR SOME MEANS OF GOLD SETTLEMENT MIGHT ALSO BE LINKED TO ADVANTAGE OF REVALUATION OF GOLD HOLDINGS THEREBY WRITING UP VALUE OF RESERVES. FRENCH ARE REPORTEDLY VERY RELAXED ON GOLD PRICE QUESTION, BECAUSE THEY APPARENTLY BELIEVE IT WILL BE REVISED UPWARD IN SOME WAY DURING THE INTERNATIONAL MONETARY DISCUSSIONS. THEY ARE NOT PUSHING FOR INCREASE IN OFFICIAL PRICE IN THE SHORT-TERM.

ANNENBERG

[Mrt: Hat tip to Jeff]

Source: https://www.wikileaks.org/plusd/cables/1973LONDON13568_b.html

No comments:

Post a Comment