P.M. modifies proposal for ‘Bretton Woods’ meeting

Press, 6 March 1984, Page 15

P.M. modifies proposal for ‘Bretton Woods’ meeting

NZPA staff correspondent San Antonio

The Prime Minister, Sir Robert Muldoon, has modified his “Bretton Woods” proposal to include the possibility that dicussions, and final decisions, be undertaken at standard meetings of existing institutions.

In an interview with NZPA in Austin, Texas, after addresses to two meetings in which he appeared to exclude the possibility of a full-scale conference dedicated to reform of the world trade and payments system, Sir Robert said he still believed the process would have to end with such a conference “in some form.”

In one address, to Texas bankers, Sir Robert said, “I don’t think we are going to have a conference,” and in another speech said that “we are past the point where we are talking precisely about that (a conference) now.” Sir Robert told NZPA afterwards that he may have “oversimplified” the issue in his speeches because he was trying to convey broad details in a very short time. “It is very clear to me,” he said “that it will be impossible to gain agreement to starting the process off with a major conference, but my belief is that the process will be difficult to conclude without a major conference.”

Sir Robert has said fre-

quently that he believes the best way to start is with a committee modelled on the International Monetary Fund’s interim committee, which has 22 members, major countries represented singly and smaller countries grouped together with one spokesman.

“Before you get finality there will have to be some other kind of conference,” he said.

*1 have - not gone beyond that at this stage, because that conference is quite capable of being the annua] meeting of the International Monetary Fund in respect of those items on the agenda that directly affect the fund, or a Ministerial meeting of G.A.T.T. (the General Agreement on Tariffs and Trade) in respect of those items which affect the G.A.T.T.

“That is where you will get your major conference, in my view. That has not been pursued far enough yet to be firm. “What I don’t think is on is to commence with a major conference. Some of the non-aligned nations still want to do it that way, but I don’t think they have a chance.” The 1.M.F.-World Bank annual meeting grouped some 145 to 150 countries, Sir Robert said, “and that is, in effect all the nations that would attend a new Bretton Woods conference, the same .with G.A.T.T., although the membership of G.A.T.T. (is smaller).” “If you get to the point

where there is not agreement in the committee process, the only way of solving that problem is by means of a plenary conference, and at that plenary conference you would either compromise on one of the options or alternatively you would say, *We have made no agreement, therefore we can get no movement on that item’.

“That might apply to a thing like the substitution account, and I have said throughout that it must be realised that there are some items on the agenda where we may make no progress.” However, he said, “We have not discussed it in precise detail, but most of those I have talked to have thought of it in terms of a

full plenary conference at the end.” “That is still formally the position that is in front of us.”

NZPA: You don’t see the committee work also being done with the existing committees of the existing organisations? Sir Robert: Yes, it is possible that we might split up the agenda and give some of it, say, to the interim committee, some of it to the development committee ... But we are not at that point yet either. The United Nations Conference on Trade and Development might become involved in the process too, Sir Robert said, “but that, I think, is less likely.”