CABLE TO AMEMBASSY LONDON FROM THE WHITE HOUSE

• Document Type: CREST
• Collection: Library of Congress
• Document Number (FOIA) /ESDN (CREST): LOC-HAK-146-7-22-8
• Release Decision: RIPLIM
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: January 11, 2017
• Document Release Date: August 17, 2010
• Sequence Number: 22
• Publication Date: November 27, 1975
• Content Type: CABLE

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No Objection to Declassification in Part 2010/08/17: LOC-HAK-146-7-22-8
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5.TATFMFNT f'Y THE praP c111f,
I W(iulL,n LIKF Tr.., Ct1M11F `aT RgTt,FLY PN Ef CF'NT n vk?_l JPMF.,uT IN
NF.W Yf7Rlt, AJX(,F ?.AxfI.Y THIS YF APO Ahifa t'ARTIrt.ii APLY IN THt
PART t)Fwt wVFk `ir THE t.1l Alit i;,, (F N ~4 Y1%rCK STATE AN(' OF r`.1F'si
YORK C'TTY `'4AVF tf. N W0F;KTNf- to OVF6dcrIMF TtIF FT"1A"!CTAI.
0IFFUC:11t.TIF8 (jF THE rITY wiilr1, AS A 'FSUULT rDF' MANY YEARS
nF Ura,nlJN0 FTSCA1, PRACTIrF'4, IJN 3ALArd("k.1i PlJr)1.FTa AN11
WNFA!CF.C) i Uk C1atr!r, 1 FATL.HVP T11 R1tttN6 AV.(11yT htt~r I(:I'At
I ANKRItPTC'Y OF Ara t}~-f- rE.C'F(-F.w,TF r' MAC d1Tt1f'1t:..
AS Ynr:! KF1t1W? I riAVF 14F.FN STF.A')FASTLY OPPr)SFU T1^+ A,"4y
FEC?ERAI. Ht.-J.P FOh NFL Yn K ^ITY H.Cr1 +0ti1.U PFWMTT ?Ttif'M To
AV I!') PPE 4pnNSifiIL ITY F nk MANA TN`Jr. THE IR fWN 4FFA t S, I AITLL
NOT A w OW THE' TAXPAYERS flF OTHFi4 3TATt, ANf) CITI~; TO PAY
TMIF P'k'T+ F OF N YnkK#.S PAST POL,TTTCAL. LRRnRS? IT Ts
I111PLIRTANT TO ALL. t1F t1S THAT TOP rI.SGAL j+,1TFFlxPITY (IF MF.W
YORK CITY Ht RF.Str) i n ANTg Tr4AT 11-4L, PFRAO"At SFrukJTY OF
FIGHT HI LION A14FRYCANS TN 4FT YORK CITY )F FULLY A.SSUkLn,
UP
ON-FILE NSC RELEASE
INSTRUCTIONS APPLY
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No Objection to Declassification in Part 2010/08/17: LOC-HAK-146-7-22-8
 No Objection to Declassification in Part 2010/08/17: LOC-HAK-146-7-22-8
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IT`"' AtWAY.1% t FN MY HfPF THAT T14F L AU(`f3,4S r1T^' i F YllRK
00011.0, WHEN THE rIPs wFRF' r'WW# , FACE UP TU THFIk
Ik r N!II IL ITItES ARr) TAKF THE TOUGH OECISIf)MS THAT THE
FACT6 CFY THE SITUATInN t FailIPF,, TriAT IS STILL. MT HOPE'# A NU
I MUST SAY THAT IT IS MUCH, MUrH LLJSER TO HF At ITY 1ON)AY THAN
U WAS LAST SPRING, I HAVE 011ITE FRANKLY r FFN ^iJr,PQIJf 0 THAT
THFY HAV! COME AS FAR AS THEY HAVE, I U0tJHTFn THAT TriFY
wLil.l t ) ACT UPLf.'SS oRwiEo 1 n r Sn HY A I' Ft7ERAL Coup, T, OWL Y
IN THE LAST MONT"!, AFTFR I MAO IT C(LAk THAT hsl:W Ya:1PK Writ,11,f)
HAVE Tt ';()LVF' TI S c?1.010AMF"hiTAL, FINANCTAI flRn8( FMS oTTHf)f1T
THE.HfLP OF THE FE.OFPAt, T/,yPAYFk, HAS TH1 RF HHFF*t A 1.:f)NCF;RTFt:1
FF"FfaRTT in #'uT TtiF EIr"!AN(J,-, OF THE r1TY ANU XH' STATE UN
A SO1.1tblfr SASIa, THEY HAVE. Tn0AY INFf`1k4hf) Pk Of TrlF SPFC'TF TC:S
NF YORK! S l r',L.F.hF"LP f''Rr(;PAF.,. 1't!I S T !CL f};1E S !
("-WP, MF'ANIN&F1.1L SPF10IN( .t!T, I AVr fir(MM ANPknVF' TO REf)orF?
THE Cn?T OF PUNNINI; TfiI rzTY; Tiro rir'l ff THAN J-p "" MILLION
,IN NEW TAXES HAVE MF.FN VfTFt). THRt,F, PAYMFNT~', T%:i TNF` CITY'S
NOTFNOLDF'F+t,S WILL #JF; Pr)STPrmF+) ANh Tpi1FREST PAYMENTS WILL
!" it1F'1f)CF"Cl 1Nrtrur;ri PJSSAf,F: OF t.Frs1SL.,ATTON PY n*f"w Y RK STATEi
Ft)t,tft, tmANKS AN[) ftTfHkf` t.AF"f"AF TN5TT1H111i.1!NS H:AVF- At,,To +vA1T
TO C:nL,I Er:T ON, Tr4FIR t UAr S ANf> TO ACLFPT t OWFP TNTF:c t ST t~ATF 5t
FIVE?, roP THE FIRST TTMI Im YF)?NS, 1INTCTPAL FvPl,uYLFS WILL
EIF REntiIRE.f~ Tfi ti' AP PART ()F THE r:t) 4T OF THEIR Pf?.}/;.5Tu')N
CfCINTRrRt,TTt1F?S AND t'?THf rd UFFt)PMS WILL sF NAOf= Irf THE' TrENST(J;lvN
FUNDS; Ix, YHF rITY PFW$Tr'N SY 1
E ~t T"' Tn P nvrt)F Aor)ITir"NAL
LOANS t.1f3 TO $2.5 HTLI.TrRAi Try TfiF rITY. ALt OF TH~SF STLPS_.
AOt?ING UP To A4 All,-LION-AP PART OF AN Ff FORT Tf0 PRnyTUF
FINAA?CINr, Arif) Ti' ? P:I11lly THE CITY'S riUJl(;FT IN TO) 9 AlANCF kY
THE FISCAL YFAP STrsfTING; ,T({LY 1, 1077,
ONLY A FFw Mf)NTr-i; AGn, wr 0RE TnL 0 THAT ALL THESE'. RFFOf#1S
fRt,? TMPng IHt ANf! r0L1L.13 NOT HE ArCOMPLTSHEO RY t'Fw YORK
AL()NF",r Tf!QAY THf:Y AkF H1r.TNr, r)f)NF~.
TILT 1,44 A f LALTSTIr. Pkf) qAM, T wAi'T T(i CnMHtWT) ALL THIS
INVOLVrO IN NEW YOP CITY ANf? t1L1* Y.ir A ;jTATt Flf THI''`TI
CIINSTR(.1CT jV1~ Ef~F r)PT? Tf) DATE, I HAvt. O L:N CLOSFLY
WATCMIP6 THE TR l"1 tjf",t E. `5"5 Tt HF F T T1-Uf; T Hf:, TR PROPLr"M, Mt;)WE VER P
Tk THE NEXT F : tf)-~Tst , NFW YORK (.TTY WILL STILL LACK
N0tJt,"H Fl?NOS in rovf fx TTS DAY-TO-0AY UP PA1IMG EXPENSES,
THIS PPMALF" IS C4(JSEO eY 1' CITY HAVING 10 PAY ITS BILLS
ON A UA1LY flA$T THkfUf'+inlJT TftF YLAf+t,, WHTLF THE HULK OF
I"I",I RE:VENUI'S Ait: t M--IVXC) f)1.lkIN6 Taff SPRTNr., MOST CTTIFS
ARE AAL.E TO ROPf"On SHURl wTFVm FUNDS Tf1 COVF'R T14ES.. NFEf7S,
"TRAGITTONA(LY R PAYING THEP4 o11T,11N4 THCTR FI$rAL. YIAW,
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No Objection to Declassification in Part 2010/08/17: LOC-HAK-146-7-22-8
 No Objection to Declassification in Part 2010/08/17: LOC-HAK-146-7-22-8
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:(;#Lk { ,:1ta vRTYATF., r0t)TT MAx KLTS ttAY RF'MAIN CLff ))
TT3-':f. p , t~F'PPF FNTAflVF (IF NEW YORK HAVF T (FOPMFf? MY
At 10tNT tTRAT'ION THAT P FY H VF ACTF1) IN GOOD) FAITH AUT
THAT THEY STILL NI EO T!) 1??r)r'Rf)w Mot4F,Y rTn) A ; rtrii?T Tf RH HAST;
i OO A piE In() GtF TIME EACH OF T!4F NEWT Twf Yt:.AR'", ltd L)M?t?Fw2
TC1 PRDvIP!` ESSENTIAL SfkV1r*f q Tf) TNIL ET6HI MTt..(.Ir).N
AMERICAN WNl LIV! IN1 THE f AT1flN'8 LAW(',E,ST CITY,
THFR FfPF f, I MAVf'' fW C I f)Ef) TO ASK THt CINCR S'i 100'4. IT
RETURNS FROM 1?F'Ck.SSS FOR AUTHORITY To PPUVIft? A IFMP()PAPY
LINE f)F CWEt)It Tr) T.HF" ST'AT= nF NP Y11NK TO ENAFiLF IT
TCt SUPPLY SLAsONAL. FTNANr'T'4(; OF K'S)FNTTAI. SFF'VTCfS Ff1R THt ,
PI~:fPL,IEm. (If NFw YORK CITY. Ta 1:,RF WILL fi STK1Nr.FNT ! ()-a(eI T t(7i^a
FUNDS w0110) t L L !ANF f'1 TU THt. STATE ON A StASf1NAL r1A,~TS.
NOPHAC,f Y FROM JULY Tw1Rr'lf,)(;H MAwdr,,?1 It) WFr.PAIr) taiITpi
TALT1~RFgI" Ir.; APRIL# MAY A$( JttNF WtflN 1Y1f bLLK (IF IT5
R VE,NLIF.5 CO F IN, ALL FAEVF'F AI, 1 +:)At4S +^ti)t1Li1 AL RF"PA TP IN
FILL AT TriF F N0 OF t-At: M YFAk., T17f' kF' w+'ILL SwF Not CnsT TO IMF
REST OF THE TAWPAYFRS fF T PE IINITEJ) STATES,
THIS IS flEitY T41 I06TNNIR?tG (:)F WFW YOOK-S RFCt)VFN.Y PkrtC:tr'a",'S
A140 WIT THE` FW)o WF'W YORK nFF'IrIAI.S mJ T (XNTIM0f To Af"CFFr
PRIMARY M f St O+ A1f4It, 1TY? THFRF MUST 0' O MTSL1N? i f4STA-iD1N(: OF
P4 POsTTICN, IF LOCAL PARTTFS FAIL. TO CARRY f111T THFIk PLAN,
I AM PPEPARLI) TL STOP F"VFri TWWIS StwAinNAL twFOFRAL ,ASSTrTAN(:F,
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No Objection to Declassification in Part 2010/08/17 : LOC-HAK-146-7-22-8
 No Objection to Declassification in Part 2010/08/17: LOC-HAK-146-7-22-8
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M TI4 WHITE H 0 E'.
TO AMEP4BA$SY LONDON
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WH5 30S ITN SECTION t) y?
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MANKP.UUPTCY LAWS j(r THAI, TF THI(