Monetary union favoured by U.K.

Press, Volume CX, Issue 32407, 21 September 1970, Page 15

Monetary union favoured by U.K.

(N.Z.P.A.-Reuter—Copyright) BRUSSELS, September 20. Britain’s Chancellor of the Exchequer (Mr Anthony Barber) said yesterday that Britain was in favour of the European Common Market’s moves towards economic and monetary union.

Mr Barber, speaking to reporters after a three-hour ministerial session of the “Group of Ten” world’s richest non-Communist nations, said that he told the meeting that "Britain welcomed unreservedly the Six’s moves towards economic and monetary unification.” Mr Barber said that Britain would, if she joined the European Economic Community accept any arrangements made by the community on economic and monetary union. The Six are at present in the process of concluding a step-by-step plan to lead to the creation of a single E.E.C. currency by 1980. The plan involves, narrowing fluctuation margins between the Six’s currencies, whereas experts of the Inter-

national Monetary Fund have advocated broadening these margins internationally to give the world monetary system greater flexibility. Mr Barber said, however, that he saw the Six’s plans as in no way inconsistent with proposals for internationally wider fluctuation bands.

Experts say that it would be possible for the Six to narrow margins against each other while broadening them against third countries. But Common Market countries are divided on the principle of greater flexibility. Asked what Britain would do, as a potential candidate for E.E.C. entry, if the I.M.F. decided on wider bonds, Mr Barber replied: “We will deal with that when and if the need arises.”