S.A. unlikely to rejoin fund

Press, Volume CXV, Issue 34026, 15 December 1975, Page 2

S.A. unlikely to rejoin fund

(N.Z.P.A. Staff Crspdt) WASHINGTON, December 12. High New Zealand 'and Australian sources on the International Monetary Fund have dis!missed suggestions that I South Africa might be invited to rejoin the fund’s “Down-Under” I constituency. i “It is out of the question, i in spite of the change f government in New Zealand,” they said today. “There is no way it can happen.” The sources were commenting on a report in an Australian newspaper, filed from Washington, which quoted a South African source as saying that the Australian M Government had approached South Africa on the basis of “Would you be interested in rejoining?” The approach is said to 'have been made since the i Labour Government was dismissed. ; New Zealand and Australia [put South Africa out of their constituency on the fund

last year after their Governments decided it was not politically acceptable to work with the Republic. . The departure of South Africa, which has not joined any other constituency, weakiened the position of New ZeaHand and Australia, because l the Republic is a wealthy I country with a healthy vote. The New Zealand-Australia [constituency and its seat, in ' terms of voting power, ranks (near the tail of the fund and; bank groupings. There is some fear that if I the members of the Organisation of Petroleum Exporting] '.Countries, because of their increasing quotas and capital I in the fund and bank, demand ] extra seats, the New ZealandiAustralia seat might be in I some danger. The seat is safe I for the 1976 elections,' because of fund-bank mechanics, ibut there might be some doubt iabout it at the next biennial (elections in 1978. I Australia, New Zealand, land Western Samoa form one; iof the 20 constituencies on |the bank, and the same three, [plus the Philippines, are. linked in the fund. The Philippines joined; (when South Africa was eased out of the fund, but main-; 'tained its links with a Latin! American grouping in the J bank. ; New Zealand, Australian,; and Philippine officials have l [said that they are very happy 1 'with their relationship.