Mansholt at U.N.C.T.A.D.

Press, Volume CXII, Issue 32895, 19 April 1972, Page 17

Mansholt at U.N.C.T.A.D.

(N.Z.P.A.-Reuter— Copy right) SANTIAGO, April 18. The expansion of the European Common Market and its likely effects on the developing countries was an important topic at the third United Nations Conference on Trade and Development in Santiago yesterday. The President of the E.E.C. Commission (Dr Sicco Mansholt) said that there were reasons to doubt that an expanded and stronger Common Market would be beneficial automatically to the developing countries; the expansion would have to be accompanied by a series of measures specifically designed to aid the Third World, he said. “One such measure might be an allocation of special drawing rights to developing countries to compensate for losses in the purchasing power of their reserves resulting from the last mone-

tary crisis,” Dr Mansholt suggested. “The Common Market has already adopted a policy of restructuring agriculture which should provide for greater possibilities of imports of products for which the developing countries are more competitive.” Dr Mansholt’s speech opened the second week of U.N.C.T.A.D., which will continue until mid-May. The conference has brought together nearly 3000 politicians and economists from 141 countries to discuss possible changes in international trade and finance policies to benefit the developing countries. Denmark’s chief delegate, her Minister of Foreign Economic Affairs (Mr Ivar Norgaard) emphasised that his country’s entry into the Community was essential if she were to increase her assistance to the Third World. “Denmark will have great difficulty in meeting her target of allocating 0.7 per cent of her gross national product to such aid by 1975 if the people reject the entry proposal in the October referendum,” he said. s

t “If we do not become a member of the Common Mars ket, we shall face such f severe economic difficulties s that it just cannot be forer seen what will happen to the - various components of the i Danish Government Budget,” » Mr Norgaard added. The proposals on special i drawing rights referred to by f Mr Mansholt were among the • subjects discussed by the s delegates in closed committee - sessions today. Other topics s included access to markets, I pricing policy, and the mari keting and distribution of s primary commodities. • The first full statements of . the East European Socialist , countries’ attitudes towards i present financial and develop- ■ ment problems are expected t today; Soviet Union and i Hungarian delegates are due f to speak. The delegation from the I People’s Republic of China, which has made no public : statement so far, apart from a brief message of good : wishes to the conference ; from the Prime Minister ; (Chou En-lai), intends to ’ speak at the end of the open sessions.