MONEY FLOWS OUT

Press, Volume CIX, Issue 31987, 14 May 1969, Page 17

MONEY FLOWS OUT

(N .Z.P.A. -Reuter—Copy right) BONN, May 13. The West German Government today will face Parliamentary questioning on what steps it intends taking to back up its refusal to revalue the mark upwards.

The opposition Free Democrats. who were firmly in fav-' our of a revaluation, have’ submitted an urgent question in the Bundestag (Lower: House) demanding clarifica-j tion of the Government’s intention.

The Opposition party said last night it would depend on the "quality of the Government answers” whether or not it sought an emergency debate on the issue.

A party spokesman said the Economics Minister (Dr Karl Schiller) the principal supporter of revaluation as well las Chancellor Kurt Georg I Ki esinger and the Finance i Minister (Dr Franz-Josef Strauss), the main anti- ' revaluation voices, were expected to be in the House i to answer questions. | On the Frankfurt money market foreign exchange circles expect more money to

leave the country today as dealers retrieve the funds they had poured into marks hoping for a quick profit in the event of a revaluation.

Yesterday, the central bank said it had sold slightly more than SUS6OOm. The Government estimates some SUS4OOOm worth of marks were bought up during the speculative wave. Chancellor Hiesinger told journalists last night that he was convinced the exodus of “hot money” would continue. No-one would want this regrettable speculation to continue, he said. The chief Government spokesman (Mr Guenter Diehl) told a press conference yesterday that Bonn estimated its refusal to revalue had cost speculators some 1500 m marks in profits. In spite of his optimism the Chancellor must expect the verbal battle in the Bundestag to- be a hard one. The Free Democrat leader (Mr Walter Scheel) demanded that the Government take firm action to maintain price stability in West Germany. Prices had been allowed to rise unmistakeably, he said.

Now more wrong decisions were being taken on the question of a mark revaluation against the advice of the central bank, which had previously shown itself to be the most reliable guardian of West Germany’s currency, Mr Scheel declared. For the Social Democrats, who were believed to have lined up largely on the side of revaluation, a Parliamentary deputy, Mr Karl Ravens, accused the Christian Democrats of endangering the nation’s price stability.