Optimism from Mr Muldoon

Press, Volume CXI, Issue 32736, 13 October 1971, Page 18

Optimism from Mr Muldoon

Optimism over the outcome of the present international - monetary crisis was expressed last night in Christchurch by the Minister of Finance, (Mr Muldoon),

Addressing the Canterbury Chamber of Commerce, Mr Muldoon referred to the recent meeting he attended of the International Monetary Fund.

“I do not believe that any of the major countries is adopting a hard and fast attitude of opposition to what is proposed,” he said. “I believe that the Americans will also compromise providing some movement is achieved, and this of course must be done in any case. “Bilateral discussions are continuing and I am confident that some progress will be made.” Mr Muldoon said that if the 10 per cent import surcharge in the United States remained on much beyond the end of the calendar year it would be extremely difficult for it to be removed. If it remained on, some retaliation would follow and a dangerous situation would arise again. "My view is that concessions will be made on all sides because all of the ' people concerned are intelligent enough to realise what ' the consequences would be, not just for their own countries, but for the world at large.

“The American import surcharge affects mainly lamb and non-carpet wools as far as New Zealand is concerned, and while we can certainly survive a period of three or four months without

too much damage, particularly as lamb stocks in the United States are high, we would, if the surcharge continued—particularly accompanied by a relative movement in the United States and New Zealand dollars—suffer some damage to a market that has taken a decade to build up. “The trade in which we are selling our lamb is highly competitive and a few cents per pound makes a good deal of difference.

“Apart from this, of course, the continued uncertainty and the inability to quote forward effectively is already hampering world trade very considerably; so a return to fixed parities at a new level is something that must be accomplished urgently.”