S. Africa’s loss might hurt N.Z.’s fund vote

Press, Volume CXV, Issue 33941, 6 September 1975, Page 2

S. Africa’s loss might hurt N.Z.’s fund vote

(From MAX LAMBERT, N.Z.P.A. stag correspondent) WASHINGTON, September 4. Australia and New Zealand’s action in kicking South Africa out of their constituency on the International Monetary Fund and World Bank last year might come back to haunt them in the next two or three years.

South Africa was given the “heaveho” by the two Down Under nations after their Governments decided that it was not politically acceptable to work with the republic because of its apartheid policies.

But the departure of South Africa, a wealthy country with big quotas, and a healthy vote, weakened the position of Australia and New Zealand in the Fund, and bank, according to informed sources in Washington.

Australia, New Zealand, and South Africa had shared a seat on the Fund and Bank for years, and formed a viable, working constituency within the grouping of nations in both institutions. Australia, New Zealand, and Western Samoa now form one of 20 constituencies on the bank, and the three countries, plus the Philippines, are linked in the fund. The constituency has one of the 20 seats on both boards. New Zealand supplies the executive director on the bank, Mr W. A. E. Green, of Wellington, with an Australian alternative, and Australia has the executive director on the fund, with a New Zealand alternative, Mr R. S. Dews, of Wellington.

The Philippines joined the other three countries in the fund constituency when South Africa was eased out, but maintained its links with a Latin American grouping in the bank. Next year, the alternate executive director’s post on the fund will rotate from New Zealand to the Philippines. Officials of New Zealand, Australia, and the Philippines said this week that they are very happy with the way the new arrangement has worked physically on the fund. Seen as threat But new developments in quota strengths, and voting power within the fund, and bank, are seen as a threat to the continued viability of the constituency, and the loss of South Africa’s strength, and vote, might be vital in future board elections. The Philippines’ vote is less than New Zealand’s vote, and the constituency, in terms of power, ranks at the tail in fund, and bank groupings. If the oil producers, whose strength has been doubled in the fund, and tripled in the bank, demand extra seats in the future, then the Austra-lia-New Zealand seat on the fund and board could be in danger. Because of the mechanics of organisation, no great problem is seen for the fundbank elections next year. Different story But sources say that the next election, two years later, could be a different story. They add that Australia and New Zealand might be forced into seeking relationshipswith other nations out-

side their areas in order to form new constituencies. This would destroy the cosy relationship built up between New Zealand and Australia, and disrupt a grouping which has worked efficiently in the past. A Pacific constituency might be one answer, but that is only talk at this stage. Although Papua New Guinea is expected to join the present Down-Under constituency when it attains independence, it will not add great voting strength. South Africa has not been accepted into any other constituency since being ejected by Australia-New Zealand, and thus does not now have a direct voice at board level. No great effect But the republic’s representative at the fund and bank, Mr Robert van S. Smit, said that the move has not affected South Africa’s position greatly. “It would, of course, be better to be represented at board level with New Zealand and Australia . but we still have our right, and obligations, and there has not been much change in substance,” he said. Mr Smit declined to comment on the question of continued viability of the New Zealand-Australia constituency or to predict the outcome of future elections. But he did say that he thought there would be “quite a squeeze” on the weakest constituencies and that, without doubt, includes New Zealand-Australia.

Liberals’ complaint. — The Liberal Party, which plans to have five candidates in the General Election, has lodged a complaint with the Broadcasting Council that its activities have been ignored by the two television channels, and has sought an investigation under the Broadcasting Act. - (P-A.)