P.M. alarmed over economic opinions

Press, 1 February 1983, Page 2

P.M. alarmed over economic opinions

NZPA staff corresponden' Davos The Prime Minister. Mr Muldoon, says he .has found "alarmingly wide” differences of opinion among political leaders and heads of international organisations over action necessary to deal with world economic and monetary problems. "My concern at the moment is that many of these people are locked into attitudes which represent national or regional points of view rather than international understanding." he said. Mr Muldoon, who attended the European Management Forum meeting, spent the week-end in informal talks with these leaders in a secluded mountain chalet. "We reached no conclusions mainly because there is an alarmingly wide range of differences of opinion among people who by definition are well informed." Mr Muldoon said after their first

session. The Prime Minister was clearly unimpressed by some of the solutions proposed at the meeting. "Somebody says that the important thing is for the United States to reduce its deficit." he said. "That is just nonsense. That is just one single issue. "Some of the people who are saying this. Europeans, are people of great eminence but they have got this attitude that it is not Europe, it is America that is the Cause of all the trouble. “Can the United States reduce its deficits? The answer is probably no. for political reasons apart from anything else. “If it does, will that solve the problem? The answer is overwhelmingly no. it does not solve the problem at all. It simply gives a short-term benefit because it makes it easier for interest rates to come down. "Even then, when interest rates went up it was nothing

to do with American deficits, it was a conscious act of policy." Mr Muldoon said. In spite of the lack of agreement, he saw considerable value in the meeting, the first he has attended of the European Management Forum. This is a Genevabased. independent foundation. which brings businessmen. bankers and politicans together. The 500 businessmen and bankers paid nearly S6OOO each for a registration, with accommodation and travel costs on top of that. Mr Muldoon said the atmosphere was much less formal than at meetings like the International Monetary Fund and the General Agreement on Trade and Tariffs, and there was a useful expression of views from the private sector which was absent from official conferences. Mr Muldoon has left Switzerland for Singapore where he will have talks with the Prime Minister. Mr Lee Kuan Yew.