DOLLARS ABROAD

Press, Volume CIV, Issue 30725, 14 April 1965, Page 22

DOLLARS ABROAD

Response To Cut

(N.Z. Press Assn.—Copyright)

NEW YORK, April 12

Business leaders questioned in a survey by the “New York Times” are giving solid support to President Johnsons’ programme for voluntary restraints on the outflow of dollars abroad.

But many regard the effort —part of an Administration drive for a sharp cut in the nation’s foreign payments deficit—as a kind of fiscal tourniquet. They argue that a shortterm tightening can help reduce the deficit to a level where lasting remedies can be applied. But any prolonged check to the free flow of American investment abroad will reduce its large return of dollar earnings and thus cause bigger future payments deficits in itself. A representative comment in the survey on this point was that by H. S. Genaan, chairman and president of the International Telephone and Telegraph Corporation. He said: “It is our hope that the current programme will be effective in the national interest. However, we also hope that it will not sacrifice short-term results at the risk of irreparable harm to the nation’s long-term interests.”