CONFERENCE REPORT

Press, Volume XCVII, Issue 28701, 26 September 1958, Page 9

CONFERENCE REPORT

I.M.F. Support Expected

MONTREAL. September 25. Eleven British Commonwealth nations will on Friday announce full and unequivocal support for Preaident Eisenhower’s plana for marshalling the non-Commu-niat world’s resources In the fight against poverty and the Communiat trade challenge. In a communique embodying the results of their exhaustive and highly technical talks. Ministers attending the Commonwealth conference will give the strongest support to increase the assets of the World Bank and the International Monetary Fund. Conference sources said the communique would be a decision to approach the United States and Western Europe on the grave need to find a solution to one of the world’s most pressing problems—the falling price of raw materials.

Commonwealth Ministers have been extremely worried by the difficulties of primary producing countries whose economies are threatened by constant fluctuations in the prices they obtain tor their bulk commodities.

The communique, conference sources added, would also record the firm resolve that Commonwealth countries should not place any obstacle to the export of manufactured goods from underdeveloped countries. Orderly Evolatlon Where special difficulties arose because such imports threatened to disrupt established industries, the industries concerned should consult together and agree upon the orderly evolution of such trade.

The resolution would signify recognition by the Commonwealth of the necessity to help poorer nations like India and Pakistan as well as Hong Kong and other colonial territories to earn as much foreign exchange as they could for financing development projects. The communique would also emphasise the importance of financial and technical assistance to 4he industrially-backward areas of the Commonwealth and Empire. It would also record the Ministers’ satisfaction with the progress of the Colombo Plan for economic development in Southeast Asia, and welcome the pledges of additional aid made by Canada and Britain during the conference.

The communique, the sources said, would emphasise the prime necessity of maintaining and increasing the strength of sterling. It would reaffirm the common objective of ultimately realising a freer trade and payments system. including the convertibility of sterling. But while noting the great improvement in the central gold and dollar reserves of the sterling area, of which Britain is the banker, stress would be laid on the need for caution In any approach to convertibility and on recognition of the fact that any final decision must be Britain's.