Russians go for gold as the safest way to settle US bills

When it comes to international jet-set travel, there are some things one simply should not leave home without.

When it comes to international jet-set travel, there are some things one simply should not leave home without.

Ask the Russians.

For this week's summit meeting in Washington, followed by a little R&R in Texas, the Russian delegation had their own particular way of settling bills. There were hotel bills for a couple of dozen people in Washington and Texas, the refuelling costs, airport taxes, car hires, meals. . .

Summiting is not cheap, and the Russians have been known to have cash flow problems. Unable to flash the usual American solution to such dilemmas, President Bush's guests came up with a reliable - if rather old-fashioned - answer: gold.

READ MORE

While Mr Putin and his wife, Lyudmilla, stayed in Blair House, the official US guest residence beside the White House, for the Washington leg of their trip, the rest of the Russian delegation were billeted in Jurys Hotel at the city's Dupont Circle.

To the surprise of the hotel manager, Mr Peter Hillery, one member of the delegation was dispatched in a taxi with a brown paper bag containing four gold ingots.

His destination? The good old Federal Reserve on Capitol Hill where Mr Alan Greenspan's minions handed over two large bags of banknotes - $1 million in all. Then back in a taxi to Jurys, where the bill was settled in cash.

Bullion? Never leave home without it.

Patrick Smyth

Patrick Smyth

Patrick Smyth is former Europe editor of The Irish Times