N.Z. SUPPORTS GOLD MEASURES

Press, Volume CVIII, Issue 31633, 20 March 1968, Page 14

N.Z. SUPPORTS GOLD MEASURES

fA’ew Zealand Press Association)

WELLINGTON, March 19.

The Minister of Finance (Mr Muldoon) said tonight the Government fully supported the action taken by the monetary authorities of seven leading commercial nations to restore the international monetary system.

He was commenting further on the statement issued in Washington after a meeting during the week-end of the seven active members of the gold pool.

“The decision of the United States and other Governments concerned not to sell gold from their reserves to private buyers will prevent the recent speculation in gold affecting the orderly expansion of world trade,” said Mr Muldoon.

This was especially so in view of the prospective establishment by the International Monetary Fund of the facility for special drawing rights.

Mr Muldoon said that the undertaking by the United States Government to continue to sell gold to the monetary authorities of other countries at the existing price of SUS3S per ounce would also assist in maintaining the free flow of world trade on which New Zealand's economy was so dependent.

“Other alternative courses of action which the members of the gold pool might have

Smoking Model.—A papiermache manikin which is able to smoke cigarettes through glass lungs that filter out tar, will be demonstrated in Christchurch on Sunday at the start of a five-day course organised by the Seventh-day Adventist Church to stop smokino.

taken could have had very serious consequences for New Zealand if they had involved a change in the exchange rate of one or more major currencies—or if the price of gold used for momentary purposes had been increased,” he said.

Mr Muldoon added it was “very reassuring” to note the high degree of international monetary co-operation after the rush on gold in London last week.