An Excerpt from The New Yorker Magazine, January 1, 1972 P. 54
In the article it tells us about the recent meeting between Pres. Nixon & Pres. Pompidou of France on Terceira Island in the Azores. “The historic Azores Agreement was formulated here, in which for the first time in 37 yrs. the dollar was devalued in terms of gold. It has also made official the existence of the new relationship of virtual economic equality of the U.S., Western Europe, and Japan. The agreement was completed after a series of meetings which totaled 12 hrs. between the two leaders alone, which was unusual. It may possibly be one of the great international accords of the post-war era. ”
At the time of the meeting the US dollar had been pegged to Gold at $35 an ounce. It was during these meetings over a 2 day period the agreement was to devalue the price of the dollar raising the price of gold to $38 dollars an ounce. The new monetary policy was then agreed upon by the major economies of the world at the time at the Smithsonian museum in Washington D.C following the meetings. Nixon is quoted as saying that it represented “the greatest monetary agreement in the history of the world”.
President Richard Nixon visited the Azores islands twice, both times staying on the island of Terceira. President Nixon was accompanied by his Secretary of State Henry Kissinger and William J Connoly Jr. The men were seen throughout the island for social dinners held for them during their visit. The President of Portugal Marcelo Cateano held a black tie dinner for the leaders at the palace on the islands capital of Angra do Herismo on the 2nd day of the leaders visit. Nixon is said to have loved the natural beauty of the island and suggested returning for a previous summit in the future.
DINNER HOSTED BY PRIME MINISTER CAETANO OF PORTUGAL
Governor’s Palace in the Azores
December 13th 1971
Some American officials that were at the dinner party hosted by the Portuguese President were; President Richard Nixon, Dr. Henry Kissinger, Ambassador David Kennedy, Vice Secretary to the Treasury Paul Volcker, Secretarty of State Rogers, Secretary of the Treasury John Connaly. Many local elite, military and political figures from the Azorean community were also in attendance at the black tie dinner, where regional cuisine and wines were served.