Nine to tackle currency crisis

Press, 8 April 1978, Page 7

Nine to tackle currency crisis

j NZPA-Reuter Copenhagen 1 Leaders of the nine European Common Market counI tries will discuss measures 'to produce greater currency (stability at a two-day summit conference that began | yesterday in Copenhagen. ( This will be part of a plan for international action to stimulate the sluggish world economy, increase growth rates, and cut rising unemiployment. The talks are in preparation for a summit conference of the seven leading industrial non-communist countries in Bonn in July. President Carter of the United States and the leaders of Japan, Canada, Brit-

am, France, West Germany, and Italy will take part in that meeting. The Copenhagen meeting has opened amid monetary uncertainties caused by the weakness of the United Slates dollar which has made it harder for Western European Governments to control their own economies, and taken the competitive edge off their exports. The Common Market is under growing pressure to take protectionist measures, especially against Japanese exports, which totalled more SNZS2OOM to the Common Market alone last year. The Danish Prime Minister (Mr Anker Joergensen), who is presiding over the Copenhagen summit meeting has told reporters that he and his colleagues will discuss forming a wider currency grouping than the joint European float. He had been asked whether the European Community nations planned to create a

new currency bloc which would be more flexible than the existing float, known as the “Snake.” The present members of the Snake are West Germany, Holland, Belgium, Luxembourg, Denmark, and Norway, whose currencies float together within a five per cent range of one another against the United States dollar and other currencies. The Common Market countries not in the Snake are France, Britain, Italy, and Ireland. Norway is the only non-E.E.C. nation in it. Mr Joergensen said the summit meeting would discuss international trade, cooperation with developing countries, and ways of reducing the E.E.C’s dependence on imported energy. The Heads of Government or their Foreign Ministers will also review internal community developments. They are expected to agree on dates in May or June, next year for the

I first direct elections to the (European Parliament. j Negotiations on Greece’s .application to join the Common Market will be touched on. The other two countries seeking membership are Portugal and Spain, but negotations with them have not yet begun. The Danish Prime Minister said he expected the summit meeting to make a firm declaration of solidarity among the nine in the face "of international terrorism.

The Community’s Foreign Ministers will also review the situations in the Middle East, the Horn of Africa, Rhodesia, and Namibia (South West Africa). There may also be discussions on Washington’s call for the nine to agree to hold. new talks on safeguards for American supplies of uranium. France is | opposed to such talks. The summit meeting is I being held under the most: stringent security seen in i Denmark.