Search for headlines, says Canada

Press, 23 September 1983, Page 3

Search for headlines, says Canada

G. G. SHAND

The Canadian Minister of Finance has hit out at the Prime Minister, Mr Muldoon, suggesting his Bretton Woods initiative was meaningless rhetoric designed to make the headlines.

In an interview yesterday, Mr Marc Lalonde reacted tersely to what he termed provocative comments made by Mr Muldoon to journalists after the opening day of the Commonwealth finance minister’s conference.

Mr Muldoon said that there was no “substance” in the Canadian and British arguments against a new world economic conference.

Britain, Canada, and Australia, who opposed him, had one thing in common: They “happened to all be white ana affluent,” he said.

“If that’s the way the Commonwealth is going to be run, we would very soon see the end of the Commonwealth,” said Mr Muldoon, referring to the support he had received from more than 40 other, mostly black, delegations. “But fortunatelly that is not going to happen.” Mr Lalonde, clearly taken aback by Mr Muldoon’s jibe, said the reference to white and affluent was a “ridiculous statement.” “I did not know Mr Muldoon was black,” he said.

Mr Lalonde said if there was a lack of substance it came from those advocating a second Bretton Woods conference as the best way of reforming the world

monetary and trade institutions.

He said the world had experienced many of these hot-air conferences where little was achieved, and Canada, for one, did not want to see preparations for another grand conference delaying urgent action that could be taken much earlier to improve the trade.

When it, Britian, and Australia wanted was action now through the existing institutions set up by the original Bretton Woods conference in 1944—the International Monetary Fund and World Bank.

One other major fear was that if this action was postponed until some grandiose conference was set up, it would lead to “expectations that will lead only to bitter frustration.”

Mr Muldoon and the supporters of his conference idea had so far failed to explain what they wanted that could not be achieved inside the existing institution.

“What does he want to replace the I.M.F. with, the World Bank with, G.A.T.T. with?” said Mr Lalonde.

When it was pointed out that Mr Muldoon did not want to replace them but strengthen and update them, Mr Lalonde laughed and said that clearly Canada and New Zealand wanted the same thing. “He is engaged in a rhetorical exercise if that is what he is talking about. He is probably in search of headlines,” he said.