International Carter pushes line on energy after inflation attack

Press, 13 April 1978, Page 9

International Carter pushes line on energy after inflation attack

NZPA-Reuter Washington President Carter of the United States has followed up his new anti-inflation programme with fresh action to push through his national energy plan, considered essential to halt the flight from the United States dollar.

He called Congressional, leaders and the Energy! Secretary (Mr James Schlesinger) to the White House! for a two-hour meeting to; help resolve the deadlock on' natural gas prices, the main; obstacle holding up the en-l tire energy plan. The result of his interven-' tion was uncertain. Members of both Houses! of Congress trying to com-! promise on conflictingnatural gas price-control I measures, said they were, neither optimistic nor pessimistic about prospects for breaking the energy impasse. Mr Carter, in a speech yes- j terday on inflation, energy.! and the declining fortunes of I the dollar abroad, said the! lack of action on the Admin-1

I listration’s plans for conserv-| ■ling energy was contributing ■ to the loss of confidence in if the United States currency ifon foreign exchanges. i' He threatened to impose i‘compulsory limits on oil im- • I ports unless Congress acted ■ soon on the legislation that ! he introduced nearly a year ago with the declaration that J the battle to reduce energy ! consumption was “the moral of war.” I Mr Carter’s anti-inflation; relied on voluntary wage and price restraint! : rather than resorting to Government controls. j He proposed that civil ser-j rants take a cut of half a I percentage point in the six I 'per cent wage increases they

■ |are scheduled to receive in I October, provoking an im- } mediate outcry from unions representing Government ! workers. Mr Jerry Wurf, president 1 of the American Federation of State, County, and Muni- ’ cipal Employees, said: “Dei nying Federal employees a ■ small portion of their pay I increase is silly symbolism that will have no impact on i i inflation.” i Administration officials said I the President was counting ■I heavily on his leadership and I personal commitment to win J the co-operation of American (business and labour in the I fight against inflation, now (running at a rate of 6.5 to 7 ’ per cent a year.