I.M.F.

Press, Volume C, Issue 29524, 27 May 1961, Page 10

I.M.F.

The Government has became noticeably firmer in its support of New Zealand's joining the International Monetary Fund. When, on April 17, the Minister of Finance (Mr Lake) announced that New Zealand would formally apply to join the International Monetary Fund, the World Bank, and the International Finance Corporation, he explained that the lodging of an application was not a commitment to join; it was a necessary preliminary to negotiations about the terms and conditions on which New Zealand would be ( offered membership. He did say that the decision to enter negotiations reflected the Government’s view that membership "would confer real and “ lasting benefit to New “ Zealand but in general, Mr Lake and other Government spokesmen seemed to be leaning backwards to avoid giving offence to Social Crediters and others who believe it is not in New Zealand's interests to join the international monetary institutions. On Wednesday, however, a member of the Government (the Parliamentary Undersecretary of Finance. Mr D. C. Seath) said that the Government was “ convinced” that membership would be in the best interests of New Zealand. He also attacked critics by saying that in the past undue weight had been given to “the vocal efforts “of a small minority of “ monetary reformers whose enthusiasm had outrun “ their knowledge ”. Mr Seath could have included in his criticism Governments and members of Parliament of both the main political parties who

had refused for 17 years to have the question brought forward for open debate in Parliament. It is satisfactory to find a member of the Government rejecting equivocation. stating his opinion plainly, and giving facts to answer contentions that New Zealand sovereignty would be threatened by joining the I.M.F. and its associated institutions. It would have been better, asj Mr F. P. Walsh said a few days ago, if New Zealand had joined the I.M.F. not for purely selfish reasons but “to assist in financing " the development of back- “ ward countries ”, “ The “Press" has said much the same thing many times over the last decade and a half But that opportunity has been lost: and the responsibility is shared by Mr Walsh’s political friends and by his opponents. The “Financial Times” took a hard-headed view of New Zealand's motives when it said last month that “ the “ important and immediate “ reason for New Zealand's “ change of attitude is that "... the Government will “ almost certainly have to “raise funds abroad in the “ near future beyond what “it is already planned to “ borrow in London ’’. The Government would draw from the fund, the “ Financial Times ” said, “at considerably less cost “than it would be able to “ raise funds on the London “ market ”. If it is now just good business that drives the Government towards membership of the United Nations monetary institutions, it is good business for Government spokesmen to emphasise this “ selling point ” in the strongest possible terms.