The "Committee of Twenty", charged with formulating a new world monetary system, hopes to have a final blueprint ready by July next year.
The "Committee of Twenty", charged with formulating a new world monetary system, hopes to have a final blueprint ready by July next year. This has been the major point to emerge form a conference of the International Monetary Fund and the World Bank in Nairobi, Kenya this week. It had originally been hoped that the conference would reach major decisions in the monetary field, but negotiators have so far failed to agree on many important points, Apparently the Committee's talks reached some agreement; that all countries would be subjected to scrutiny if their balance of payments showed a protracted surplus of deficit. It was also agreed that Special Drawing Rights, or "Paper Gold," should form the basis of the new system. But, after a year's work, the Committee still failed to agree on the mechanisms for implementing the new system.
The United States Secretary of the Treasury, Mr. George Schultz, said the stage should be set by next August for final agreement. By that time, Mr. Schultz said, the American basic balance of payments would swing back into surplus after three years of deficit. ??? said the United States would not attempt to establish a prescribed value for the dollar on foreign exchange markets until August. But, he said, it would continue to intervene on the markets form time to time to maintain orderly conditions.
The Chairman of the Committee for Twenty, Mr. Ali Wardhana, in a report to the conference, said the general shape of the reformed system had been defined, and significant progress on some important issues had been made. Paper gold was to become the principle reserve asset, with the role of gold and reserve currencies being reduced. Economic development and the flow of real resources form developed to developing countries were to be prompted.
THIS FILM INCLUDES STATEMENTS FORM MR. ALI WARDHANA AND MR. GEORGE SHULTZ. A TRANSCRIPTION OF THESE STATEMENTS FOLLOWS: