The Finance Ministers from twenty countries began talks at the Congress Palace in Rome, Italy, on Thursday, on the unprecedented economic problems arising from the recent big rise in the price of oil.
GV Congress Palace in Rome
SV French Finance Minister entering building
SV Other minister entering
SV Japanese Minister out of car and posing for photos (2 shots)
SV American Secretary Shultz
Initials AE/3.48 AE/3.58
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Background: The Finance Ministers from twenty countries began talks at the Congress Palace in Rome, Italy, on Thursday, on the unprecedented economic problems arising from the recent big rise in the price of oil.
During the first session of the two day meeting, the Unites States, with the support of West Germany and Canada, suggested that the industrial nations should adopt a tough line against the oil producing countries in the hope of obtaining a cut in oil prices. This position threatened to exacerbate division within the European Economic Community because of West German anger at what they see as the excessively pliant attitude of the British and french Governments towards the oil producers.
The Finance Ministers of the twenty countries from the Committee of Twenty, which was set up by the International Monetary Fund to negotiate a reform of the World monetary system.
Nearly all the industrialised countries have been forced to re-examine their monetary reform plans because of economic changes which were described by the United States Treasury Secretary, Mr. George Shultz, as "without precedent in magnitude and suddenness in peacetime".
Mr. Shultz told his follow delegates that the present problem was literally "unmanageable" for many countries.
The West German finance Minister, Herr Helmut Schmidt, warned the Conference against accepting the oil price increases because the example of the oil producing countries might then be followed by the producers of other essential commodities.
One proposal put before the Conference was for the IMF to establish a special new international fund through which oil states could lend back their money so that other countries would be able to pay their oil bills. Some reports suggested that the ministers were reaching agreement on this plan.
SYNOPSIS: At the Congress Palace in Rome, Finance Minister from twenty countries belonging to the Committee of Twenty, met on Thursday to discuss the problems arising from the recent big rise in the price of oil During this first session of the two-day meeting, the United States suggested that the industrial nations should adopt tougher policies with the oil-producing countries.
The Finance Minister of Japan, Mr. Kiichi Aichi, was among the delegates who heard the United States Treasury Secretary, Mr. George Shultz, tell them that the economic changes of the past few months were "without precedent in magnitude and suddenness in peace-time". Because of them, nearly all industrialised countries had been forced to re-examine their plans for reforming the World's monetary system.
Mr. Shultz also told the Conference that for many countries the problem was literally "unmanageable"