BRETTON WOODS AGREEMENT

Bay of Plenty Beacon, Volume 08, Issue 91, 20 July 1945, Page 4

BRETTON WOODS AGREEMENT

Sir, —In the Address from the Throne at the opening of the Parliamentary session no mention was made of the Bretton Woods Agreewhich it is generally understood will be coming before this ses--sion of Parliament. A full debate on the vital question of New Zealand's actual or prospective commitments under the scheme, and the implications on our national economy was promised 12 months ago } but has not taken place. It is to be hoped that the conclusion will not be drawn overseas that silence meana consent, for there is a large, section of opinion in this country, as in, Great Britain, which is highly critical of the Bretton Woods scheme and determined ou full explanation and discussion tof all its aspects by Parliament before any commitments are agreed to. New Zealand's participation is certainly not to be decided by default, and we await a definite pronouncement from the Acting Prime Minister, who was the leader of New Zealand's delegation at the conference. Surely it is not proposed to confine Debate on such, a far-reaching issue to a clause in the Budget defining our financial liability. Remarkably little publicity has been given to the Bretton Woods scheme in this country, } in contrast to Britain, where it has been the subject of' discussion in Parliament and in commercial and other public organisations eyer since the confers ence. Such authoritative bodies as the London Chamber of Commerce, after thorough investigation, have not hesitated to condemn the scheme which has been drastically described as "Dollar Imperialism" by

at least one preminent economist. The contention that the scheme in its present form can and may establish extraneous control of the econromy of small nations, such as, New Zealand virtually abrogating their right to decide what they shall produce and consume ? export and im-< y port, what industries shall be estab- , lished and what employment provided has not been Satisfactorily refuted and is too serious to be ignored . In face of the attention and concern displayed over the proposed State acquisition of the Bank of New Zealand, it would be well to consider that it may not matter much who owns the Bank } or what financial policy we wish to pursue in this country if Ave are securely tied to the International Monetary Fund and World Bank as proposed at Bretton Woods. It is to be hojjed that the people of New especially those in commerce and politics who hold themselves responsible for influencing opinion, will make every effort to acquaint themselves fully with

the scheme and its and instruct their Members of Parliament accordingly before the matter is dealt with by Parliament. Theoretically it is not possible for any country to be committed without jts * voluntary consent, but. in practice a poorly informed or apathetic public can mean a cursory negligible, or unduly postponed DelWe in Parand consequent undesirable commitment by default. The Press can. do a great deal to prevent this dangerous and undemocratic result. Yours etc. 9 JOHN HOGAN k Hon. Secretary, Economic Reform Club and Institute.