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~2)THE GOl.D 1..0SSES IN 1967 AND 1968 WERE ENTIRELY OUE TO '" .,

SPECULATION. WITHOut SPECULATION GOLD SUPPLY WOULD BE IN TH~ ORDER ~

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eor 0 t~t .. Y TO ~~EE-r AN INCREASE 1 N LEG IT IMATE GLOBAL RESERVE: .. ! ?:

Wr.EDS SUT' AL~)O TO COMPENSATe: NET REDlJCTIONS IN WORLD MONETARY.~ !1 .gi'

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'IL.l. QUICKLY E ~~ UG H EM~:RGE SPO ~r'C ANEO USL Y FRO M THE GOLD -L IKE' .~ ~i-J

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?ROPEf~rIES '1II"l·~{ 'JIHICH TI1E NEW RESERVE ASSET WILL (OR Sl<OULD) BE .~: f!l;~

.ENDO{,1ED. EVE~J IF· IN THE LONGER ·RUN SUCH A DEVELOPMEt4T COULD SE EX- : ~- ... -~;:

PE.crEO t WE HAVE NO r 1~1~ TO WA IT. FOR IT. WHAT, Tt~ERF.FORE, 1 N ADO IT to N .~ :~t

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EQlfALITY TO GOLD·~ t I.E. RULf;S OF 1}i£.G·A~1E T}iAT ENSlJRE T}fAT GOLD, AND- j?::

rl~E ASSET ·ARE TR~:ATEO BY THE r~ot~ETARY AUTHORITIES ON THE SAME FOOTlNG :r::

~IITHOUT A BIAS 1 tJ FAVOUR Or GOLD. • .. _ ~~,

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(9) THE ~10s-r SI~lPLE: AND OIREcr \;lAY TO ENSURE THIS WOULD BE AN .. .: · .; ~

AGREEM~:NT A·MONGST GOLD-}{OLDI NG COUNTRIES TO }{ARMONISE Tlt£t:. RAi·lO .: ?

BETWEEN GOLD HOLDINGS AND (GROSS) ASSET noi.m NOS BY ~~EAr~s 0, MONTHLY I~:;

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~ ... - OR QUAR1-ERLY RESHUFFLES. T}iE GOLD A~lOtlNTS 11~VOLVED IN THESE · - · '~'

RE:SHUFFLES ~'OULD I N THE BEG 1. NN I ~G, WHEN CUMl!l .. AT J VE I\SSF.:T cnEAT 10 N . :~

Sf ILL IS \'ET~V SMALL CO ~1PAREO TO TO'r AL GOLD STOC K S, tlE 0 Nt. V MI NOR. 'f.

G~:tJ£R ALL v SPE A X I ~'G , · co UN·fR lES LIKE T HE ~tEfl'BERS 0 F 1J-iE co MMO N MAR KET (,'

~'ITH RELA~tIV£L)' HIGH GOLD }IOLDI NOS l.N REt-AT ION TO THEIR QUOTA p .';

- tNO tlLD HAVE TO TR Pt NSFER SO t'JE: GOLD. (AGA I NST NEW ASSE·r S) TO CO lJNTR lES vt TH l,'~

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~~:LA.TIVElfY LO'" GOLD HQLDlt~GS LIKE JI\Pf\N, UNITED KINGDOM, SWEDEN • .:

. Ar~Li CANAD.A. (SEE ANNEX, ~'HICl~ ALSO SHOWS THAT UNDER CERTAIN ASSUMPTIONS "

· ~II·TH RESPEC1' TO THE r~E(ijBERS1{lP OF THE RESHUrrLE CLUS .... SEE PAR. 11"· . ~,' .:

THE UNITED STATES WOULD DELONG TO THE GROUP OF COUNTRIES THAT WOULD' -

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IN\4HICH 'i~{F.RE WOllLD NO LONGE:R BE UNCERTAltJTY ABou~r TliE STABILITY · .:

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THESE 01·~'ER RULI~St ~(Q~JEVER, ARE OF' SECONDARY IMPORTANCE: CO!f}?ARED TO ;

rf~E OVERntDING URGENCY OF EtJSURING THAT THE NE~J RESERvg ASS.ETS WILL · ,.

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T~IA1 1'HEY ""OUJ .. D HAVE TO PAY II~TEREST, THEY MIGHT PREFgR TOJ '.~

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WOULD HAVE 'CO 'JOrtJr SP~iINt souru AFRICA. AUS'IRIA, POR'rUGAL,'

URUatJAY, aUR~lA, l.IBYA AND LEBANON ·(SEE ANNEX)." · .

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