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
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