This Day In 1970's History: Tuesday February 13, 1973
- President Nixon devalued the dollar; reaction is generally favorable so far. Economist William Wolden says that devaluation is the economic parallel of Nixon's Peking trip. But National Planning Association chief economist Wilfred Lewis believes that devaluation will have little impact on the economy and he feels that a recession is coming.
Meeting with Treasury Secretary George Shultz and adviser John Ehrlichman, President Nixon said that the next step is massive new trade legislation. Rep. Henry Reuss approves of the devaluation, but pointed out that imported products will now cost more. Senator William Proxmire said that more effective anti-inflation measures must be enacted, and government spending must be kept down. International Monetary Fund managing director Pierre-Paul Schweitzer feels that no further devaluation will be necessary, and the dollar may even get too strong. Devaluation will affect the American consumer to some extent. Foreign goods will cost about 10% more in the United States. [CBS]
- A UPI reporter noted that "Europe on $5 a day" now costs $5.50. American tourists in Europe reacted unfavorably to the devaluation, but activity in London banking houses was calm after frantic activity before the devaluation. Bankers are just glad that the crisis is over. [CBS]
- North Vietnam announced that it will release 20 more American POWs within the next few days. Pentagon spokesman Jerry Friedheim suggested that this may be a gesture of good will toward Henry Kissinger, who has been visiting Hanoi. Commander Brian Woods and Maj. Glen Perkins left Clark Air Force Base for America before the rest of the released prisoners; the mothers of both men are seriously ill. Commander Woods expressed his pride in America and in the President. Pentagon Dr. Roger Shields said that discipline and dignity helped the POWs survive in North Vietnam, and most are now in good health. The freed POWs have excellent appetites. They will return to the U.S. soon, and some will collect as much as $100,000 in back pay.
An AP reporter at Clark AFB said that some of the POWs tried to get a bus to go to a night club, but failed. As the first two POWs return to America, flags are still being flown at half-mast to mourn the death of Lyndon Johnson, but they will be raised to honor the POWs. [CBS]
- In the last few years many planes have been hijacked to Cuba. An agreement has now been reached between the U.S. and Cuba regarding anti-hijacking measures. President Nixon disclosed the agreement today although Secretary of State Rogers said that the details are not complete yet. Officials cautioned that this agreement doesn't necessarily mean renewed diplomatic relations with Cuba. [CBS]
- Beginning Friday, armed police must be posted at all airport boarding gates. [CBS]
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