The repercussions of President Nixon's moves to strengthen the U.S. economy closed foreign exchange throughout?
The repercussions of President Nixon's moves to strengthen the U.S. economy closed foreign exchange throughout the world on Monday, touched off a frantic wave of selling on the Tokyo Stock Exchange, and alarmed foreign industrialists.
This film shows some of the reaction activity in London including British Cabinet Ministers returning to Downing Street for talks.
The United States is said to hope that its economic measures will force the revaluation upwards of strong currencies like the German mark and the Japanese yen.
This film also includes street interviews which indicate a willingness on the part of some ordinary Americans to accept the new initiative. If successful, it may well have importance for next year's Presidential Election Campaign.
There is also a statement on the new measures made soon after his arrival in London by U.S. Treasury official Volcker. It is followed here by transcripts of the street interviews: This film also carries a commentary which is for guidance only.
SYNOPSIS: Mr. Paul Volcker of the American Treasury arrived in London on Monday, for talks following President Nixon's new moves to defend the dollar. Mr. Volcker had joined European and Japanese Government representatives and central bank officials in London For talks on the implications of what some have called a virtual devaluation of the dollar, aimed at forcing revaluation of the Japanese yen and the German mark.
In London the British Cabinet was called back from holiday to discuss the crisis, and Britain is now expected to press for talks with the Common Market countries and members of the International Monetary Fund. In Europe and elsewhere there was no dealing in foreign exchange, and market were closed on Tuesday.
British, European and Japanese car exporters braced themselves to face the ten per cent surcharge in the American market, although their spokesman said they were not greatly worried. The surcharge hits all foreign cars alike, and they hope to remain competitive. Those selling sports cars in the top and of the American market expected to be least affected of all. In New York ordinary Americans seemed to welcome the new initiative. It may well make an impact, it successful, on next year's Presidential election campaign.