American goal in Rome

Press, Volume CXI, Issue 32776, 29 November 1971, Page 15

American goal in Rome

(N.Z.P.A.-Reuter—Copyright)

WASHINGTON, November 27,

The United States Treasury Secretary (Mr John Connally) said today that realignment of foreign currencies—resulting, in effect, in devaluation of the United States dollar—was the chief American goal at next week’s key monetary meeting in Rome.

As he left for the conference of the Group of Ten industrial nations, Mr Connally declined to comment on a report in the “Washington Post” that the Nixon Administration was willing to lift its 10 per cent import surcharge in return for a 10 per cent to 12 per cent upgrading in currency values. The report also said that the Administration was now willing to compromise on lifting the surcharge, imposed last August 15, by postponing action on some of its trade demands. The Treasury Secretary appeared to give some sup!port to this interpretation

when he said: “The principal thing is realignment of currencies. Trade is not as easy to accomplish.” Mr Connally said that the Administration was willing to lift the surcharge when it obtained assurances of realignment of currencies and some trade action by other nations which would lead to correction of what he termed the “terrible balance of payments deficit” of the United States. . The Commerce Department yesterday announced that the United States had a trade deficit last month amounting to sB2lm. As for the demand by some members of the Group of Ten that the United States devalue the dollar in relation to gold, Mr Connally said: “We don’t intend to change the price of gold.” He added that this was a political, not an economic, issue. Mr Connally left aboard a special Air Force flight for the Rome meeting, which begins on Tuesday. He was accompanied by a delegation of Treasury, State Department, Agriculture and Federal Reserve Board officials.