Lethbridge Herald, The (Newspaper) - March 14, 1973, Lethbridge, Alberta
Wednesday, March 14, 1973 THE UTHBRIDGE HERALD 5 Could mean trading break in Common Market U.S. dollar may take another drop in value An AI> News Analysis By I1ILL NE1K1HK WASHINGTON CAP) The decision ot six European coun- tries to let tho value of their currencies rise and fall together may mean another drop in the dollar's value. But it could give the United States a better trading break in those Common Market coun- tries. The European move is the most complex yet in a string of international monetary steps taken in the last IVi years to halt speculation and restore peace to money markets. No' one is sure the joint Eu- ropean currency float will work when money markets reopen Monday after a two-week shut- down, The six Ger- many, France, Belgium, the Netherlands, Denmark and agreed to cut loose their currencies from their fixed exchange value with (lie dollar. The currencies will find their own values against the dollar from day to day. But it is a joint float, mean- ing the six countries want to keap their currency values among each other fixed at roughly the same relationship, give or lake 2.25 per cent. If, for example, a wave of speculation in West Germany forced up the value of the mark six per cent against the dollar, then the other five nations would move to push lip the value of their currencies by roughtly six per cent. Any lime the dollar drops in value against other currencies, imports from those nations be- come more expensive to the U.S. consumers, and American exports into the affected coun- tries become cheaper. For this reason the six na- ilons probably will not allow Ihe value of the dollar to drop loo far. They could halt any dollar depreciation by again buying up dollars with their own money. Or the United States could use foreign currencies to buy up ex- cess dollars. A currency float means that things could go either way. The dollar could rise in value in re- lation to other countries, as it did in unofficial trading among banks in key European cities Monday. But most experts say a decline in the dollar's value against the other six is more likely because of Ihe tre- mendous surplus of dollars still oversea billion worth by latest estimate. There is also foreign concern over U.S. inflation and a contin- uing deficit. President Nixon says Ihe dol- lar will not be devalued again, but if the United States agrees to a tower value for the dollar in relation lo Hie six nations be- fore any action is taken to de- fend it, it would amount to a devaluation against those cur- rencies. Under Iho world monetary system that broke down in mid- 1971, currencies were ex- changed according to fixed val- ues that could vary up or down by one per cent from their offi- cial exchange rate with the dol- lar. Nixon brought the system clown on Aug. 15, 1971, by end- ing the country's long-standing pledge lo convert foreign dollar holdings into gold. Oriental shoving match With little room for himself or his shopping bag, a Tokyo commuter backs into a jammed train as union slow- downs continued in Japan. Incidents broke out Tuesday at several Irain stations, including one where thousands of angry commuters went on a.rampage and occupied Ihe station for hours. In this piclure, a Japon National Railways employee helps pack in Ihe passengers. French maintain election stability Yards From Canada's Leading Carpet Manu- facturers! Uy FLORA LEWIS New York Times Service PARIS The French clec- lion Sunday has brought a -certain relief and a degree of dissatisfaction for every party concerned. On the one hand, the statis- tics showed Monday that the remarkable stability of the French electorate had scarcely The government will remain the government, the op- position remains the opposition, and while the center gained some levera'ge it is still a minor force that can produce some lilt but no real third choice be- tween left and right. Despite the relatively small shift in popular votes, the intri- cate French system produced a fairly, dramatic change in the composition of the national as- sembly. It cost the Gaullist-led government coalition 99 seats and added 90 to the allied soci- alist and communist groups. But it means a change of tone in the long-muted legisla- ture, not of power, which re- mains firmly under the guid- ance of President Pompidou and the majority that supports him. On the other hand, even the Gaultist victors conceded open- ly (hat the results reflected some impatience ar.d a desire for change, but not too "much or loo harsh, among the elec- torate. French political commenta- tors calculated that one by one, by the mysterious telepathy of UK) democratic system, the message they wanted to send to Lhose who hold power. It was that power needs a little shaki g up, reforms are in order and some new faces would be welcome, but without drastic upheaval. MORE FREEDOM Although Pompidou did all he could to gain a large major- ity, which enables him to deal easily with the assembly, the Gaullist losses, in a way, gave him more, rather than less, freedom of maneuver. By demonstrating to the or- thodox Gaullists and hardline right that Ihey do not domi- nate the country, Hie elections have enabled Mr. Pompidou lo move a little further away from Gautlist doctrine in for- eign affairs and toward the felt demand for social justice in domestic affairs, No immediate shifts arc ex- pected, particularly in foreign affairs. Tiie old arguments about the North Atlantic Treaty Organization and Europe and a special French role between east and west have faded into the back-ground, as much by force of circumstances as by deliberate change of policy. The new questions in foreign relations arc matters of nu- ance and opportunity. It was noted, for example, that finance minister Valery GLscard D' taing did not begin serious bar- gaining in Brussels about mo- netary policy last night until the outcome of the election was fairly clear. But once it was certain that 100% NYLON CARPET Sculpture pattern blends in well with modern de- cor. Heavy Iraffic rated, In good color Rusf, Avocado, Green, Gold. Carper Bonanza Price COMPLETELY INSTALLED SQ. YD. 100% LOOPED NYLON CARPET Tough nylon carpoling with stands the on- slaught of active young- sters at ploy. In Tanger- tone only. Carpet Bonanza Price COMPLETELY INSTALLED SQ. YD. 100% ACRILAN CARPET SCULPTURED PATTERN Features the ultimate in practicality ond dur- ability. 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Veteran proponents of the European cause here, including Jean Monnet, hailed it as an important advance toward common action. Other issues, including rela- tions with the United States, the middle cast, and the Euro- pean military balance, are ex- pected to he treated in a si mi lar stejvhy-stcp response to dc volopmenls, without either any about-face in policy or lost ditch defense ot old positions 100% ENKALOFT NYLON Genuino Drunsmet Sfalic Controlled Carpel in 16 magnificent colors. Non-all ergemc nylon fibres thai offer easy cleaning and carpel care, Carpet Bonanza Price COMPLETELY INSTALLED SQ. YD. 100% NYLON SHAG Heavy Traffic Rated A gay casual floor full of sunshine fo delight everyone's fancy and co-ordinate ony decor, Colors: Green, Orange, Avocado, Gold, Beige. Carpet Bonanza Price COMPLETELY INSTALLED SQ. YD. KITCHEN CARPET Various patterns and styles. Completely install- "y QK ed, from sq. yet. 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