Measures To Improve World Liquidity

Press, Volume CIV, Issue 30861, 21 September 1965, Page 18

Measures To Improve World Liquidity

fA'ew Zealand Press Aasoctation) WELLINGTON, Sept. 20. New Zealand’s interest in the Asian Development Bank and in measures being devised by the United States to improve international liquidity were discussed tonight by the Undersecretary of Finance (Mr Muldoon).

“We are most interested in the proposals for an Asian Development Bank which are under consideration,” Mr Muldoon said at the opening of the sixth S.E.A.N.Z.A. (South East Asia-New Zealand - Australia) central banking course in Wellington.

On the problem of international liquidity, he said New Zealand was in the position of having a vital stake in international financial arrangements “without having means other than logic of our arguments for influencing international financial affairs."

No progress was possible without international co-op-eration, said Mr Muldoon. “The realities of power are that those nations which, in terms of the sheer size of their economies, are the important trading nations, inevitably will exercise a great deal of influence on the shape of things to come, but

the views of the smaller nations must also be made known.

“Fortunately, from our point of view the Government of the United States is taking the initiative to devise measures to improve international liquidity; and the Government of New Zealand is looking forward with considerable interest to the outcome of these moves,” said Mr Muldoon. It was New Zealand's view that any new reserve asset should be created within the International Monetary Fund. There were many schemes, Mr Muldoon said, for doing something along those lines. The opening of the course has coincided with an important event in New Zealand’s economic history, said Mr Muldoon.

Only last week the Government's decision to make a formal request for New Zealand’s first drawing from the International Monetary Fund was announced.

“Although New Zealand is ■ a small country, in terms of jour trade a head of populaItion, we are one of the

world’s great trading nations,” Mr Muldoon said.

S.E.A.N.Z.A. was formed in 1956. Foundation members were New Zealand, Australia, India, Pakistan, and Ceylon. Later Japan and Malaysia joined. Courses are held about every two years. This is the first time one has been held in New Zealand.