Economic briefing for P.M.

Press, 24 June 1983, Page 21

Economic briefing for P.M.

PA Wellington The Prime Minister, Mr Muldoon, was given a toplevel briefing on international moves towards a new Bretton Woods-type world monetary system when he met a senior United States official this week.

His caller, the United States Under-secretary of State for Economic Affairs, Mr Allen Wallis, was the American co-ordinator for the recent seven-nation Williamsburg summit, which moved towards the idea of a new order, which Mr Muldoon has been talking about

for some time. It was believed a new Bretton Woods was discussed when the two men met at the Beehive at lunchtime, before officials gathered for two days of talks in the economic consultations which have been going on periodically since 1969. Mr Muldoon said before the meeting that Mr Wallis would be able to give a “valuable perspective” on the Williamsburg meeting.

That summit, last month, attended by leaders from the United States, Britain, France, West Germany, Italy, Canada, and Japan, issued a directive to the

International Monetary Fund asking it to consider a new Bretton Woods conference.

The first such conference, held in a New Hampshire town in 1944, set up the I.M.F. and the World Bank, and set fixed exchange rates.

Mr Muldoon has been urging a return to fixed exchange rates as a way to avoid the possible collapse of the international monetary system. Also likely to feature in today’s officials’ discussions are bilateral trade issues, particularly but in general terms, butter and beef.

Mr Muldoon was also believed to have had a briefing on the United States economy, its projected recovery and what was likely to happen to United States interest rates.

It is doubtful, however, that this session of talks moved on to the details of trade issues such as dairy subsidies and the selling of the American “butterberg.”

At the officials’ talks, chaired by the Treasury Secretary, Mr Bernie Galvin, international economic issues were to be discussed yesterday and bilateral issues today.