P.M. gains backing on world economy

Press, 11 February 1983, Page 3

P.M. gains backing on world economy

PA Wellington An influential international commission yesterday echoed the calls by the Prime Miniter, Mr Muldoon, for urgent action to avert a world economic crash. Led by the former West German chancellor, Mr Willy Brandt, the independent commission produced a report seeking urgent world consultation on emergency .economic recovery measures. The Brandt Commission also appealed in a letter to all countries and international institutions “in the front line of this common crisis” to move quickly to solve it. The letter was signed by Mr Brandt, a former British Prime Minister, Mr Edward Heath, and the Commonwealth Secre-tary-General, Sir Shridath Ramphal. It told the industrial North and developing South that

they were economically interdependent and could not overcome the recession without co-operating.

Mr Muldoon released a copy of the report in Wellington and said that it confirmed his proposals for “reform and new initiatives in the world trading and payments system.”

He also said that the report, underlined the need for urgent action to avert the danger of a major world economic crisis.

“The fact that the nature of the growing crisis is being recognised in many different organisations indicates that we now have the opportunity to make progress rather than continuing the round of interminable conferences which make no real advances,” he said.

Mr Muldoon also produced a transcript of a House of Commons debate in Ottawa which showed representa-

tives debating proposals put up by Mr Muldoon for changes in the world economy.

The Canadian Deputy Prime Minister and Secretary of State for External Affairs, Mr Allan MacEachen, said in that transcript that Mr Muldoon had “made some proposals, for example at the recent conference at Davos, which I attended, with respect to methods of consolidating and dealing with overhanging debt.

“While it is not possible to say that these proposals have been developed to the point where decisions can be made, there is no doubt that the Prime Minister of New Zealand is putting his finger on a problem which will require increasing attention and which is receiving increasing attention,” Mr MacEachen was quoted as saying.