• Short Summary

    THE WEST GERMAN GOVERNMENT TONIGHT (FRIDAY) TOOK A FIRM STAND AGAINST INCREASING THE VALUE OF THE MARK.

  • Description


    BUNDESHAUS; CROWDS; CHANCELLERY; WILLY BRANDT; WEHNER; AHLERS; LONDON FOREIGN EXCHANGE OFFICE; EXCHANGE RATE BOARD.




    Initials JH/V-B/PW/SGM



    Script is copyright Reuters Limited. All rights reserved

    Background: THE WEST GERMAN GOVERNMENT TONIGHT (FRIDAY) TOOK A FIRM STAND AGAINST INCREASING THE VALUE OF THE MARK. THE BONN DECISION, TAKEN AFTER 12 HOURS OF MINISTERIAL DISCUSSIONS, WAS DESIGNED TO PUT A HALT TO THE CURRENT WAVE OF INTERNATIONAL MONEY SPECULATION -- THE RUSH OF THE MARK AT THE EXPENSE OF WEAKER CURRENCIES. THE SPECULATION RUSH CAUSED A DAY OF CHAOTIC TRADING ON THE LONDON FOREIGN EXCHANGE MARKET.

    HERR CONRAD AHLERS, DEPUTY GOVERNMENT SPOKESMAN, ANNOUNCED THE DECISION OUTSIDE THE CHANCELLERY AND SAID THE POSSIBILITY OF SUPPORTING ECONOMIC MEASURES WOULD BE CONSIDERED BY THE NATION'S ECONOMIC LEADERS IN THE NEXT FEW DAYS.

    FOREIGN MINISTER WILLY BRANDT AND ECONOMICS MINISTER KARL SCHILLER OF THE SOCIAL DEMOCRATIC PARTY ARE BELIEVED TO HAVE ARGUED IN FAVOUR OF AN EARLY UPWARDS REVALUATION OF THE MARK.

    A SPECIAL THREE-AND-A-HALF-HOUR CABINET MEETING THIS AFTERNOON WAS ATTENDED BY ALL BUT ONE OF THE 20 MINISTERS. CENTRAL BANK PRESIDENT KARL BLESSING, WHO WAS CALLED IN WITH TWO OTHER CENTRAL BANK DIRECTORS IN THE MORNING TO DISCUSS THE SITUATION WITH GOVERNMENT COALITION PARTY LEADERS. ALSO ATTENDED THE CABINET MEETING.

    THE DECISION NOT TO REVALUE WAS SEEN IN BONN AS A VICTORY FOR CHANCELLOR KURT GEORG KIESINGER'S CHRISTIAN DEMOCRATS OVER THEIR SOCIAL DEMOCRATIC COALITION PARTNERS. IT WAS BELIEVED THAT THE CHANCELLOR AND HIS PARTY OPPOSED ANY CHANGE IN THE MARK EXCHANGE RATE.

    THROUGHOUT THE DAY, THERE HAS BEEN INTENSE ACTIVITY ON THE WORLD'S FOREIGN EXCHANGE MARKETS. IN LONDON, THE POUND STERLING WAS AT ITS FLOOR LEVEL AGAINST THE U.S. DOLLAR AND THE BANK OF ENGLAND STEPPED IN WITH SUPPORT. THE MOVE RESULTED FROM THE RUSH TO TURN STERLING AND OTHER CURRENCIES INTO DOLLARS WITH WHICH TO BUY MARKS. SPECULATORS WERE HOPING TO MAKE PROFIT IF THE MARK WAS REVALUED. IT IS FELT THAT THERE WILL BE AT LEAST TWO MORE DAYS OF UNCERTAINTY BEFORE THE CURRENCY MARKET OPENS ON MONDAY (12 MAY) TO TRY AND PUT THE SITUATION INTO ORDER.

  • Tags

  • Data

    Film ID:
    VLVA1QWXKA6OEV9MOKOAGIJH3UK1B
    Media URN:
    VLVA1QWXKA6OEV9MOKOAGIJH3UK1B
    Group:
    Reuters - Source to be Verified
    Archive:
    Reuters
    Issue Date:
    09/05/1969
    Sound:
    Unknown
    HD Format:
    Available on request
    Stock:
    Colour
    Duration:
    00:01:45:00
    Time in/Out:
    /
    Canister:
    N/A

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