Spain was accepted as the eighteenth member of the Organisation for European Economic Co-operation at the Ministerial Council Meeting in Paris, France, July 20.
GV. Building in Paris.
SU Delegates walk out.
SV. Sir Hugh Ellis-Rees (Smaller man) shakes hands with Jose Nunez
CU. Jose Nunez Pan to Sir Hugh Ellis-Rees
LV. Delegates walk past.
Script is copyright Reuters Limited. All rights reserved
Background: Spain was accepted as the eighteenth member of the Organisation for European Economic Co-operation at the Ministerial Council Meeting in Paris, France, July 20. As a result she will benefit from credits worth GBP134 million. After the meeting, Council Chairman, Sir Hugh Ellis-Rees, posed for photographers with Spanish delegate Senor Jose Nunez.
Her acceptance means that Spain now moves from the state of economic isolation she has enjoyed since the civil war of 1936-37. She will now share in shaping European financial policy, but in return her internal economy will be subject to regular critical examinations by the Organization.
To bring her in line with other OEEC members, it will be necessary to re-organise Spain's economic policies. reforms and important stabilisation measures will be announced by the Spanish government shortly. To combat inflation, taxes are to be increased, bank credits restricted, and import quotas lifted.
On July 18 the Spanish government devalued the Peseta -- its official rate is nov 167 to the GBP against a previous 117.60. Greater flexibility of the nations economy is the governments aim.