I.M.F. TO AID BRITAIN

Press, Volume CIII, Issue 30593, 9 November 1964, Page 13

I.M.F. TO AID BRITAIN

Immediate Loan Approved I i (N.Z. Press Association—<Copyright) PARIS, November 8. The “Paris Club”—the 11 richest members of the International Monetary Fund —yesterday agreed to make available immediately more than 400 million dollars to aid Britain in her balance of payments difficulties, officials said in Paris.

The immediate loan, mainly in European currencies, will be supplied by members of the club. The remaining 600 million dollars will be provided by the 1.M.F., the officials said. The group agreed to make the money available after a three-hour discussion at the French Finance Ministry yesterday. Germany was expected to make the largest contribution among the European members. Britain obtained the agreement after a searching examination over the last two days of her economic policy by her partners in the economic policy committee of the 21nation Organisation for Economic Co-operation and Development, of which all the “Paris Club” nations are members.

The O.E.C.D. accepted, after considerable discussion and protests, British arguments that the 15 per cent import surcharge was only a temporary, and non-discrim-inatory, measure. The British team of Treasury and economic experts pressed home three main points: 1. The import surcharge is strictly temporary. 2. The need for long-term action, including structural changes, to revitalise Britain’s economy. 3. The Government intended to pursue vigorously an incomes policy, with good chances of success.

‘Quickest Way’

(N.Z.P.A.-Reuter—Copyright) DERBY, Nov. 8. Mr George Brown, Britain’s Economic Affairs Minister, said in Derby yesterday that much of the criticism of the new Labour Government’s emergency imports surcharge was reasonable. But, he added, none of it *has shaken my conviction that temporary charges on imports were the best and quickest way to stop the bleeding.” Mr Brown called for steady increases in production and said it was not enough to clamp on import charges as an alternative to inflation.