Govt heads differ on world economy

Press, 6 September 1980, Page 1

Govt heads differ on world economy

NZPA New Delhi The pessimistic view of the world’s economic future held by the Prime Minister (Mr’ Muldoon) appeared to be shared by the Singaporean Prime Minister (Mr Lee Kwan Yew) at the Asian and* Pacific Commonwealth heads of Government meeting in New Delhi. ■ But the J Indian Prime Minister (Mrs In./ra Gandhi)' and the Australian Prime Minister (Mr Fraser) were less gloomy. Mr Lee, who said, “Whether we like it or not- we are all part of the. rat race and. have to! make sure • we get up . front,” was'. critical of Australian trade protectionism. . Mr Fraser retorted that •. Australia might have

been protectionist in earljeriyears but the criticism was. not valid’ in respect of the country “in the eighties.” • • Mrs Gandhi said she did not accept Mr Lee’s economic/thesis because she. was concerned that traditional values would be eroded if only internationally competitive industries were permitted to survive. It was-important to preserve traditional values and industries because if they were lost there-was nothing to fall back on during times of recession. During the morning de-, bate Mr Lee told delegates that emphasis should be placed on economic development featuring export products. The basis - of his argu-

ment was that .jf a -country was producing something it could, not .sell competitively ..it./should “get out of it.” Mr Muldoon said Mr Lee argued that , there was no such tiling as protectionism in Japan and •America because if the right products .were pro- . duced they would buy because they had to,/as the products were the cheapest and best.' "That of course is not true, because they don’t buy our lamb and _ dairy products because it is the cheapest. and best,” Mr Muldoon; shid. / ” /.: / ' >/’ He rejected charges that he had been too pessimistic in his review :of the world economic situation: Lee speech threatens Delhi • / ijiiity, Page 8; , -