U.S. DEFICIT

Press, Volume C, Issue 29436, 11 February 1961, Page 13

U.S. DEFICIT

German Offer Criticised

(Rec. 10 p.m.) WASHINGTON, February 10.

The Secretary of the Treasury, Mr Douglas Dillon, told a press conference last night that the United States Government does not feel that the German proposals to ease the United States balance of payments deficit go far enough. While the United States clearly had a basic deficit of 1,500.000 million dollars annually. there seemed to be a basic surplus in the German balance of payments of something approaching 1000 million dollars a year Just shifting the burden would not solve the problem at all. Mr Dillon said “We think this is a mutual problem,’’ he added "We are not just asking the Germans to help the United States We are able to take care of ourselves by our own actions." But, he added this was a matter of imbalances and the German surplus was as important as the United States deficit "Insignificant' “We don’t feel the German proposal, as put forward, goes far enough to meet that specific problem." Mr Dillon said. He referred to what he termed the "wholly insignificant amount” of some 10 million dollars proposed for payment to the N ATO infrastructure Asked what it was the United States wanted the Germans to do, Mr Dillon replied: “We want them to take action so that they do not have a continual surplus of IGOO million dollars a year.