I.M.F. vote victory for Reagan

Press, 6 August 1983, Page 11

I.M.F. vote victory for Reagan

NZPA-Reuter Washington In a victory for the Reagan Administration the United States House of Representatives has narrowly approved a SUSB.4 billion increase in the American contribution to the International Monetary Fund to help it cope with the world debt crisis.

The bill, approved on Thursday by a vote of 217211, would require the United States representative to the fund to oppose loans to any country practising apartheid, such as South Africa. Before final passage the House approved by 242-

185 an amendment to extend the restriction to Communist countries, reversing an earlier vote defeating that amendment. The House version of the bill must now be reconciled in a House-Senate conference committee with one from the Senate which does not include the restrictions concerning apartheid and Communist countries.

It was not immediately clear whether the restrictions attached by the House would be retained in the final version of the legislation when it emerges from the conference committee.

The United States Treasury Secretary, Mr Donald Regan, called passage of the bill in the House “welcome news for world economic stability.” The bill was in the national interest of the United States. He said that it would mean the United States could meet its international responsibilities and that the Fund could continue helping countries with heavy debts to improve their economic positions. President Ronald Reagan had telephoned House members in a strenuous effort to ensure passage in the

Democratic Party-con-trolled House. But despite his strong support for the legislation only 72 of his fellow Republicans voted for it while 94 opposed the measure. Opponents said that, the bill would amount to bailing out banks which had made unsafe loans to developing countries. Mr Reagan and other Administration officials argued that the legislation would help the United States by making it possible for other countries to buy American goods, thus indirectly creating jobs for Americans.