Nixon’s reform call

Press, Volume CXII, Issue 33032, 27 September 1972, Page 15

Nixon’s reform call

j (N.ZP.A. -Reuter —Copyright) WASHINGTON, Sept. 26. President Nixon today called for sweeping reform of the world monetary system, and said that he would not tolerate continuing arrangements which denied the United States a larger ; share of world trade. Addressing the opening ■ session of the World Bank ■ and International Monetary Fund conference, Mr Nixon said: “The United States ■ will press for a more equitable world of trade.” Laying heavy emphasis on his ambition to negotiate i wider international access for American goods through a ; more open trading system, Mr Nixon said that the 'United States would meet competition, rather than run . away from it, and that she would be a stimulating trading partner and a straight,l forward bargainer, not isolai tionist. Recalling the thousands ’ of millions of dollars spent ■ by the United States on; ' foreign aid, Mr Nixon said:; “After the Second World! ' War we deliberately set out 1 i to help our former enemies j * as well as our weakened j allies, so that they could j 1 ; gain the economic strength i - that would enable them to; • compete with us in world i markets. Now we expect ourj trading partners to help to, bring about equal competi-| I tion.” Mr Nixon spoke under the! f most severe security precau-*

tions in the 26-year history of the World Bank and the 1.M.F.: the senior monetary officials from 124 nations locked in the conference hall during his address. The American leader warned the nations of the non-Co<nmunist world that failure to negotiate a balanced trade and monetary system could inspire serious international friction.

“As the danger of armed conflict between the major Powers is reduced, the potential for economic conflict is increased,” he said. “There must be a thoroughgoing reform of the world monetary system to clear the path for the healthy competition of the future.”

The appearance of the President at the conference underlined his anxiety to stabilise the fragile world economic situation as soon as possible. “The time has come for action across the entire front of international economic problems,” he declared. “Recurring monetary crises such as we have experienced all too often in the last decade — unfair currency alignments and trading arj rangements which put the ! workers of one nation at a : disadvantage with the i workers of another, great | disparities in development that breed resentment, a monetary system that makes ,no provision for the realities of the present and the needs of the future—all these not only injure our economics, ■but create political tensions i which subvert the cause of ; peace.

“Let us all resolve to look >at the ledgers of international

commerce with new eyes, to see that there is no heroism in a temporary surplus, nor villainy in a temporary deficit, but that progress is possible only in the framework of equilibrium.” Conference sources said later that the meeting was shaping more as a political debate on the future role of the principal Powers in the world economy, than as a technical discussion of the aspects of a general monetary overhaul.

The delegates gave the I.M.F.’s managing director, Mr Pierre-Paul Schweitzer, a 30-second ovation when he rose to address the conference. The United States has announced publicly that she opposes his re-election next year.

Mr Schweitzer, who gave a warning that currency speculation could break out again while reform negotiations were under way, emphasised his concern about inflation in economies of several major Powers, and called for more wide-spread use of price-wage restraints.

He struck an optimistic note on the issue of reform, saying: “We shall be able to see very substantial progress in the field of international monetary reform by the time of our meeting in Nairobi next year.”