Documents / FOIA release
This Top Secret study by the Interdepartmental Coordinating Group on Germany and Berlin, dated July 12, 1961, and released by the Central Intelligence Agency, answers NSC Directive No. 58 of June 30, 1961. It sets out courses of action for the Berlin crisis but does not judge their merits. It covers imminent presidential decisions, a three-phase timetable running to January 1, military preparations and mobilization, covert action, economic sanctions, public information, negotiating positions and checkpoint procedures for East German personnel.
“Cooper”8 pages
Read from the scan by GLM-OCR; expect the odd misread word.
## SECRET (3) Congress is more likely to grant strong stabilization powers to the President, unimpaired by special exemptions and loopholes for this group and that, if the forces of inflation are already visible. ## 2. Preparations Relating to International Gold Flows The international position of the dollar is weaker today than it was in June 1950. The effects of an international crisis and of U. S. military and economic preparations on international capital movements and in particular on confidence in the dollar are difficult to assess, but they could be extremely serious. The psychological reactions of people who can move funds from one country to another may be quite irrational and volatile. The U.S. may receive some funds now in Germany. On the other hand, fears of U.S. military involvement or simply revived fears of U.S. inflation because of the economic strains of a build-up might lead to very large flows of private funds out of the United States, in favor of other currencies or of gold. Many of the central banks which would acquire dollar balances, either from the U.S. or from Germany would even under normal circumstances convert these balances into gold. We must be prepared to prevent, so far as possible, and to counter a new "run" on our gold, which could well be more serious than the problem of 1960. These preparations will need to include: (a) Consultation with other governments concerning movements of capital from one national currency to another or from currencies to gold that may arise from anxieties about the international political situation, with a view either to preventing such movements or to off-setting their effects on the foreign exchanges. (b) Review of existing emergency powers to control outward movements of funds, and to protect the United States monetary gold stock. ## 3. Consultations Relating to Raw Materials Supplies Although world supplies of most basic raw materials are relatively abundant today, and prices are low, we must be prepared for raw material shortages, speculative stock-building, and price increases. This will create problems not only for the U.S. but for the industrial economies of our allies. We should consult with our allies concerning international machinery for assuring flows of basic materials to their most important uses here and abroad and for counteracting speculative influences.
Not linked to a story yet.
FOIA release, from the cia-readingroom collection. The PDF is mirrored here; the original link is above. The text was read from the page images by GLM-OCR; expect the odd misread word. 163 pages are in the text index: search them above, or from the library's search.