Hard lobbying over P.L.O.’s status

Press, 22 September 1980, Page 3

Hard lobbying over P.L.O.’s status

NZPA Washington The question of observer status for the Palestine Liberation Organisation at the annual meetings of the World Bank and the International Monetary Fund this month remains undecided. The United States,, which opposes such recognition of 1 the P.L.0., won a narrow victory on Friday but Arab nations gave notice that they will keep up their fight to have the P.L.O. represented at the meetings. After a heavy round or diplomatic lobbying, the United States persuaded enough member nations or both the bank and the fund to vote for a resolution effectively blocking P.L.O. attendance. The Americans had to get more than half of the 140 I.M.F. member countries and 135 bank members to vote, ensuring a quorum. The Arabs, backed by the rest of the Third World, urged their

supporters to boycott the vote, making it invalid and thus ensuring that the P.L.O. could attend. By Friday night there were sufficient votes in both ballots. The I.M.F. one was close, with 73 votes, only two more than the required number. The Arab nations immediately gave notice that they will raise the matter at the annual meetings, which will begin, in Washington ori September 30. . . The American Administration, touchy about upsetting the Jewish vote in this election year, promptly began a new campaign to block this. The outcome could have a vital bearing on the effectiveness of the ; I.M.F. to continue making i loans to the world’s lesserdeveloped nations. , The United States Con- ; gress last week approved a " 50 per cent increase in the ■ American quota to the I.M.F.

to about $U516,500 million but it warned that the acceptance of any official status for the P.L.O. by the I.M.F. “would result in a serious diminution of United States support.” The Arab countries, for their part, have threatened to withhold money the I.M.F. badly needs for its lending programme unless the P.L.O, is given observer status,

The New Zealand Prime Minister (Mr Muldoon) declined to admit the P.L.O. at last year’s annual meetings in Belgrade when he was chairman. He set up a committee which failed in four meetings in Paris this year to resolve the matter. This year’s chairman, the Tanzanian Finance Minister, Mr Amir Jamal, has said that he will invite the P.L.O. to join the hundreds of other banking and financial observers at the coming meetings. The vote which ended on Friday effectively deprives Mr Jamal of the power to invite who he likes but he has indicated that he will not readily accept this.