Saturday, April 13, 2013

Monetary gold wikileaks - 1974LONDON07425_b

1. RESPONSIBLE BRITISH PRESS REPORT AT LENGTH THAT FINANCE MINISTERS OF GROUP OF 10 HAVE AGREED TO ALLOW COUNTRIES IN BALANCE OF PAYMENTS DIFFICULTIES TO PLEDGE THEIR GOLD STOCKS AS BACKING FOR FOREIGN LOANS. TEXT OF U.S. TREASURY COMMENTS IN REFTEL ALSO REPORTED IN ARTICLES. THUS FAR, THERE IS LITTLE EDITORIAL COMMENT. LONDON TIMES EDITORIAL NOTES THAT THIS POSSIBILITY DOES NOT NECESSARILY MEAN THERE IS A CNEMEC#ON GOLD'S ROLE IN THE MONETARY SYSTEM. CENTRAL DECISION BEING WHETHER OR NOT CENTRAL BANKS WILL BE ALLOWED TO BUY GOLD FROM THE FREE MARKET. THIS DECISION WILL BE KEY IN REAFIRMING GOLD'S FUTURE POSITION. FINANCIAL TIMES POINTED OUT IN RE- LATION TO U.S. TREASURY COMMENTS THAT PRICE AGAINST WHICH GOLD STOCKS WOULD BE PLEDGED WAS A MATTER OF NEGOTIA-ION BETWEEN BORROWER AND LENDER AND THAT AGREEING ON A PRICE FOR GOLD IN SUCH AN OPERATION MAY NOT BE EASY. ANNENBERG NOTE BY ANALYIS. #AS RECEIVED.

Source: https://www.wikileaks.org/plusd/cables/1974LONDON07425_b.html

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