Debtor countries affect all—P.M.

Press, 24 January 1984, Page 8

Debtor countries affect all—P.M.

PA Auckland The plight of heavily indebted countries mattered a great deal to New Zealand because the world economy was interdependent, said the Prime Minister, Sir Robert Muldoon, yesterday.

He told a luncheon meeting of Auckland Rotarians that about 40 nations had no prospect of servicing their debts, let alone paying them off.

Sir Robert said that in the 1940 s the United States economy “carried” the rest of the world, but that was no longer the case. A forecast upturn in world trade had not oc-

curred because of restraints being imposed by countries in economic difficulty, he said.

“If one country limits its imports, another country has a downturn in exports.”

Sir Robert said he did not believe the improvement in the American economy would continue far into 1985.

“The drag of the financially troubled countries is, in total, so great that it will first inhibit and then stifle the upturn in the American economy.”

He believed that would happen unless some “inter national action” was taken.