Lethbridge Herald, The (Newspaper) - January 14, 1975, Lethbridge, Alberta
LETHBRIDGE HERALD Tuesday, January 14, 1975 Crucial monetary talks under way to tackle oil debts JGTON (CP) is undor way here this week lo talks for Finance Minister form of back-up lending facili- because of sky-rocketing oil problem and there are told a news conference Mon- "there's no guara conomies of many taekle the problem of oil- John Turner, playing the oc- t.V should be set up in support costs and other inflated com- different views on whether a day he is optimistic that an compromise, lations hovering on fuelled debts. easional Canadian part of ol the shakier members of the modifies. compromise can be worked agreement will emerge from Ministers from 9 WASHINGTON (CP) With the economies of many industrial nations hovering on the edge of a. major depression, a crucial round of international monetary talks i------------------------------------ Economic observers "broker" between the United international community But both the Europeans and foresee a potentially impor- taut but delicate role in the States and Europe. whose economies are the Americans have'their own out. this week's talks. But Jack Sir Denis Healey, Britain's Bennett, U.S. undersecretary Both sides agree that some threatened with bankruptcy ideas on how to, tackle the chancellor of the exchequer, of the treasury, has said thai 0 Canada! Glorious and freezing. The roads are treacher- ous and the side streets are barely passable in our home and native land. Far, far better to have the extra traction and superior handling of front wheel drive. (You're better off being pulled out of a skid than being pushed through one.) Get high stability from low centre of gravity o'er ice, slush and snow. And glowing hearts from constant flow heating. A wise buy at under Especially before blizzardy winter blows in. The Honda Civic, O Canada. Honda Civic. The Automobile Re-thought. 'Price specification! Kised on manufacturer's HippoiitJ fur iwn-Jnor, -l-speed FOB Vancouver, Toronto anJ Monire.il Trice does not include handling or pro-delivery inspection charges, licence and provincial lax. Prices and specifications subject to change without notice. Corner 2nd Ave. 9th St. S. McFADDEN MOTORS Phone 327-7250 Lethbridge, Alberta 'there's no guarantee" of a compromise. Ministers from 24 of the less developed nations met Mon- day at the headquarters of the International Monetary Fund Their counterparts from 10 of the richest Western countries hold a caucus today in another of the IMF's board rooms. Like all of this week's meet- ings, those two get-togethers are behind closed doors. Sepa- rate news briefings are sched- uled for late today to outline the results. JOHN TURNER Turner arriving from Ot- tawa on Monday night, is scheduled to be one of the par- ticipants today in the 10- under the chairmanship of the Japanese finance minister. As a par- ticipant, Turner will have an opportunity to put forward Canada's position on some of the contentious and complex issues facing the monetary ex- perts. After that, his role is likely to change. The Canadian minister will be chairman Wednesday when a group known as the interim committee on the inter- njitional monetary system opens a two-day hearing at the nearby headquarters of the Pan American Health Organization. The interim committee has 20 principal participants, but another 100 delegates representing most members nations of the IMF also have a right to take part in one way or another during its deliberations. As chairman, Turner is ex- pected to assume a somewhat neutral stance, working for a compromise that would sus- tain the international monetary structure while meeting the objectives of both Europeans and Americans. Turner was elected chairman of the interim com- mittee last October when the IMF held its annual meeting here. He has been consulting regularly since then with financial policy-makers abroad, including two trips to Washington for talks with IMF officials and U.S. Treasury Secretary William Simon. Canada's own position, eco- nomically and politically, has tended to support the Turner role. The Canadian government contributed million to a special "facility" set up by the IMF, borrowing money from nine oil- producing nations to help some 33 other countries with debts aggravated by a four- fold increase in oil prices. As both an importer and ex- porter of oil, Canada is in a po- sition to appreciate the two sides of the oil discussion. As a country whose economy has not been crippl- ed by oil costs, Canada can also take a dispassionate view of the conflicting proposals for an international lending mechanism to support Italy and Britain, or many of the less-developed have been badly hurt. Simon and U.S. State Secre- tary Henry Kissinger have proposed that the 24 members of the Organization for Economic Co-operation and wealthy Western set up a ?25-billion "safety net" to ensure themselves against economic collapse. The European Common Market, largely supported by the less-developed countries, proposes instead that the IMF structure be used. They want a new IMF "oil facility" of some billion set up, with contributions from the oil- producing nations as a key element. Britain's Healey said Mon- day the Europeans are willing to consider the United States proposal, but he said it "must be a complement" to the European plan, "not an alter- native."