Finance Conference Ended In London

Press, Volume XCVIII, Issue 29010, 26 September 1959, Page 11

Finance Conference Ended In London

(Special Correspondent N.Z.P.A.)

LONDON, September 23. Commonwealth finance ministers ended their two-days conference in London with the usual Innocuous communique which gave a very slight indication of the ground they covered in their talks. But it is known they were very ■ satisfied with the tenor of discussions and that Commonwealth countries have among other things a much better idea of the situation regarding the European Common Market in which as primary producers they are so deeply interested. This was a subject which greatly concerned New Zealand and Australia and their delegates spoke on it at some length. It is understood that after voicing their apprehensions about possible rival relationships between the European Common Market and the projected European Free Trade Association, with consequent implications for primaryproducers, their spokesmen went away reassured by the British response. Britain emphasised that she had throughout the negotiations kept the Commonwealth fully informed and would continue to do so. The whole conference, it is said, supported a contention by New Zealand and Australia that there should be a closer association between the two European trade blocs. The discussions covered current economic problems, including the prospects for world trade and the position of the sterling area for the raising of funds for Commonwealth development and the present trading position in Europe—particularly the Commonwealth’s role in the European Common Market.

As is customary, no binding decisions were taken but recommendations were made and debated and Commonwealth representatives were able to air their opinions and grievances on all major issues facing the Commonwealth and sterling area. Many subjects raised in London will also be on the agenda of the annual meeting of the World Bank and International Monetary Fund in Washington next week and it is there that firmer decisions may be possible. As New Zealand is not a bank member she will not be represented at these talks.

The tone of the meeting was set by the Chancellor of the Exchequer (Mr Heathcoat Amory) who gave an encouraging review

of prospects for the balance of payments position, both in Britain and in some parts of the Commonwealth including New Zealand and Australia. He asked member countries to do their best to maintain the strength of sterling to ensure that these prospects were realised The outlook for 1960, he said, was good with the likelihood of bigger earnings by the sterling area as commodity prices rose. Britain’s own exports should continue to forge ahead with the general expansion of international trade, which in turn should mean the continuance of the flow of capital into the Commonwealth. It is understood, however, that some Commonwealth spokesmen were not so optimistic about their own countries.' Although the

improvement in commodity prices since the last meeting has been marked, representatives of Ceylon, Pakistan, India and the Federation of Rhodesia and Nyasaland still expressed some concern about the future. Pakistan for instance suggested some good might come from an association of Commonwealth producers of raw materials which outside countries would be invited to join. India brought up the question of her big need for foreign exchange. This, however, is more a matter for the World Bank and will be raised again there. It is reported that Canada is concerned at continued discrimination against some dollar goods. Her delegate admitted that Britain had gone far to eliminate such discrimination, but he contended that as the balance of payments position of the sterling area countries improved the justification for restrictions on the imports of dollar goods disappeared.

On the question of creating the International Development Association, an organisation which the United States had suggested might be formed to make loans to underdeveloped countries, New Zealand was an interested observer but as she is not a member of the World Bank her interest is purely academic.