3. Speech in Nairobi: World Currency Conference, 25 September 1973

The speech was linked to Schmidt’s efforts to counter global inflation and to move ahead with the overdue reform of the world currency system after the linking of the international monetary system to the dollar had ended (See Hartmut Soell: Helmut Schmidt—Macht und Verantwortung, vol. 2 (München: Deutsche Verlagsanstalt, 2008): 258ff.). Here he was concerned to combine the different concepts of the balance of payments—the United States favoured automatic sanctions, the Europeans a flexible approach—in such a way that neither would new trade wars emerge among the industrialized countries nor would there be negative consequences for developing countries. Behind it all was the fear of a further rift between the United States and the countries of the European Community which might also lead to the erosion of the North Atlantic Alliance.