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To: IngotWeTrust who wrote (11142)	5/3/1998 11:12:00 AM
From: Alex	Read Replies (2) \| Respond to of 116953

Wim Duisenberg Wins Post as ECB Head Tony Blair gets to play, too ATTEMPTS by European leaders to launch the euro on a high note with 11 initial member countries ended in ignominy yesterday after Prime Minister Tony Blair brokered a compromise deal which will make Dutchman Wim Duisenberg the first head of the European Central Bank (ECB). But Mr Duisenberg, who has Germany's backing, is expected to signal that he will promise to stay only until euro notes and coins are introduced in 2002. That would pave the way for a French successor - probably the governor of the Bank of France, Jean-Claude Trichet. France had been blocking Mr Duisenberg's appointment in favour of a French candidate. While the agreement, which Mr Blair put to leaders of all EU member states last night, breaks the deadlock, it may not be the end of the saga which has dogged the launch of the single currency. Euro MPs are determined to stick to an EU treaty requirement that the ECB presidency is held by one independent banker for eight years. The treaty stipulation that the ECB is to be free of political interference has effectively been abandoned. But with France, Germany and the Netherlands arguing over the job - and other countries joining the fray - the biggest step towards European political and economic integration in decades only served to heighten national rivalries. The dispute was a clash between two visions of the ECB; the German, which wants it to be independent of politics, and the French, which favours a political say in its running. With Britain holding the rotating presidency of the EU, Mr Blair was chairing yesterday's discussions. However, Britain's ambiguous status as a country which is not joining the single currency but has to ensure that its launch is a success has hampered Mr Blair's ability to mediate. As the leaders arrived for the summit, President Chirac held out for a French candidate while other leaders insisted on the Dutchman. German officials claimed that anything less than an agreement that Mr Duisenberg serve a full term would embarrass Chancellor Kohl and damage his chances of being elected for a record fifth term this autumn. Despite the gravity of the situation, several European leaders indicated that they wanted to wrap up the summit quickly so they could fly home for the long Bank Holiday weekend. Some saw the row as a challenge to the new currency's credibility. Pauline Green, the Labour MEP and leader of the European Parliament's socialists, said: "This is the first test of the euro." Whoever the ECB president is, he will suffer constant interference from politicians, many of them French, she suggested. She said: "We all now know what sort of phone calls the president will get in the middle of the night. And we all now know where they will come from." The Germans, the most eurosceptic of the nations signing up for the euro, regard the idea of politicians from countries like Italy or France interfering in the euro's management as anathema. For an occasion marking a turning point in European history, yesterday's summit was spectacularly lacking in razzmatazz. The building housing the summit was surrounded by barbed wire and police water cannons for fear of demonstrations. And the leaders taking part had no plans to toast the new currency with champagne, it emerged. Jose-Maria Gil-Robles Gil-Delgado, the president of the European Parliament, told MEPs: "I would say to you all on this historic occasion: let us rejoice". Eurosceptics were in no mood to celebrate, however. Jean-Marie Le Pen, the French Right-wing leader, said: "It's capitalist Europe that will break up our society. Nation states will be swept away. I fear that we will see the blood of our nations running as we surrender our sovereignty to Europe." On a day that was supposed to show the world a Europe united as never before, even the lunch menu fell victim to national jealousies. The British, as the event's official hosts, vetoed the original "European" menu in favour of salmon and scallop tartare, fillet of lamb, English cheeseboard and dark chocolate parfait, all shipped over from Britain. The London Telegraph, May 3, 1998

To: IngotWeTrust who wrote (11142)	5/3/1998 10:18:00 PM
From: Wizzer	Respond to of 116953

I'm going to take a stab at the "Where is the Gold?" question before I look. Is it possible that certain European central banks from certain countries were perhaps, nudged into selling? In that way, the Euro bank could begin to accumulate gold to support the Euro at a less expensive price. When the Euro is introduced its gold backed support will add value to the currency. (just a guess) Possibly, Argentina and Australia were caught up in the selling as casualties of the drop in the price of gold.(???) Nevertheless, if my "stab" is incorrect, I still think that we will be surprised at the amount of gold the Euro bank has upon introduction. I'm thinking more likely 30% assets in gold(or more) than the lower range of 5%. I will have to get back to you when I find out. I am looking forward to the answer.