LETTER TO HONORABLE WILLIAM BRADLEY FROM WILLIAM J. CASEY RE BRADLEY S QUESTIONS ON STABILITY OF INTERNATIONAL FINANCIAL SYSTEM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83M00914R001000030057-0
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 19, 2016
• Document Release Date: February 20, 2007
• Sequence Number: 57
• Publication Date: September 2, 1982
• Content Type: LETTER

Approved For Release 2007/02/20: CIA-RDP83M00914R001000030057-0
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1.- Executive Director
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LL'):JW:rjg (31 August P2)
Retyped:rjg (2 September R2)
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Central intelligenceAgency
OEXA 82-2064/A
Honorable Gilliam Bradley
United States Senate
Washington, D.C. 20510
Dear Senator Bradley:
I?-- //105'9//
In your letter of 19 August you raise some extremely important questions
about the stability of the international financial system. We too have been
concerned about these problems, and the financial crisis in Mexico obviously
has increased the vulnerability of the system to major shocks, such as default
by a sizable sovereign debtor. Indeed, the Executive Branch is preparing a
major study of these issues for presentation at the Cabinet level and with
a view to assessing the effectiveness and shortcomings of the present inter-
national financial system and to recommending appropriate improvements. We
are participating in this interagency study, which is chaired by the Treasury
Department.
We are also preparing our own independent assessment of the nature and
seriousness of the Lesser Developed Countries (LDCs) and Soviet Bloc debt
problems and their implications for the world economy and political stability
in the LDCs. As part of this study we will be examining possible risks and
impact of major systemic crises. Specific recommendations, however, on such
matters as clarification of central bank agreements and creation of new
stabilization funds, fall primarily within the expertise and responsibility
of the Treasury and Federal Reserve Board. I see the role of intelligence
primarily as providing international economic and political perspective based
on the collection and analysis of, international economic data.
We would be happy to discuss these critical issues with you and your
staff and will keep you informed of the progress of the two studies just
mentioned. They are due to be completed around the end of September.
Sincerely,
William J. Casey
Director of Central Intelligence
l/
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