Finance experts form the leading monetary powers met in several secret sessions in paris and Bonn on Monday (12 Feb) in efforts to find a formula to end the currency crisis that has bedeviled world money markets for two weeks.
GV Bonn airport
GV & SVs Japanese officials arrive (3 shots)
GV Ministry of Finance building
SV Schmidt arrives & enters
GV & SV Japanese officials arrive (2 shots)
GV London City
SCU Paper flyer "Dollar Crisis"
GV 10 Downing Street
SV TILT DOWN sign of currency levels in Rome(no totals shown)
SV People cashing money(2 shots) at American Express
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EXT. Paris Stock Exchange
CV Board with prices posted
SV PAN Deserted foreign exchange desk
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Background: Finance experts form the leading monetary powers met in several secret sessions in paris and Bonn on Monday (12 Feb) in efforts to find a formula to end the currency crisis that has bedeviled world money markets for two weeks.
Finance ministers form Britain, France, West Germany and Italy and President Nixon's top monetary reform adviser Mr. Paul Vocker, conferred in secret for five hours, in Paris early into Tuesday morning. In Bonn, West German Finance Minister Helmut Schmidt met Mr. Takashi Hosomi, special adviser to Japan's finance minister, about the crisis, which most directly threatens the American dollar, the Japanese yen and the German deutsch mark.
Major foreign exchange markets closed in the face of a flood of millions of unwanted U.S. dollars.
As a possible solution, major governments could agree to float all their currencies to determine more appropriate fixed rates. But the final solution, according to international monetary sources, would probably be a global devaluation of the dollar, and an accompanying upward revaluation of the yen and West German mark.
Unlike other currency crises, the British pound has been relatively unaffected, having already been floated on world money exchanges.
Although a full-scale conference of the "Group of 10" non-Communist nations could be the outcome of the secret Paris talks, the resolution of the crisis hinges, according to monetary experts on a triangular agreement between the United States, West Germany and Japan.
SYNOPSIS: Leading Japanese monetary experts went to Bon on Monday for meetings with their West German and United States counterparts aimed at ending the two-week-old world currency crisis. Officials are seeking a way to stem the flood of unwanted American currency that closed the major currency exchange markets last week. The meetings are apparently designed to get a realignment of three major currencies -- the Japanese yen, West German mark and U.S. dollar.
West Germany's finance minister Helmut Schmidt went into meetings with the Japanese under increasing pressure. Earlier, West Germany's central bank bought up six thousand million U.S. dollars to prevent a drop below its fixed floor price.
For the first time in recent years, the British pound may ride out the currency crisis relatively unharmed, since it has already been floated on world money markets.
Tourists, meanwhile, have found some difficulties cashing travellers cheques for large amounts in centres like Madrid. In times of currency uncertainty, banks are cautious about currency exchange, even in the once-solid American dollar.
In Paris, where foreign exchange desks lay deserted experts predicted the solution would be a devaluation of the dollar and revaluation of the yen and mark.