Papua New Guinea Post-Courier from Port Moresby, National Capital District, Papua New Guinea • 7

Helmets in the hydrangeas Nixon moves to Post Courier Tuesday August 17 1971 7 bolster dollar OREIGN MONEY WORLD CHANGES CLOSE report STEEL' helmets of ON MONEY SYSTEM importance how for The Reserve Bank has STATIONERY DEPARTMENT (Sfeamships Navy Mr Killen last night announced he extent of such a of devaluations vary in relation poke front 18 ty leadership of the Liberal Artillery cover in the dollar' to buying some i million (SA625 in foreign ex to preserve its gold at any time in the past The suspension of gold convertibility of the dollar does not appear in itself to constitute practical vjvurxHguv uic of Japan declined to allow the dollar' float $US700 million) change parity But since the suspen sion of the pledge rep resents the revocation of this guarantee of dollar value other countries probably will feel little moral com punction in letting the dollar float at least tem oorarily economic ob servers said The key to the dol immediate future lies in the international monetary talks launched London yesterday by do what it to co operate the US and countries in was conducting its men of the Royal Horse cautiously above the masonry as soldiers take gardens of houses in Londonderry during recent fighting AAP photograph Mr Paul Volcker the US Treasury Under secretary for Monetary The de cision to impose a 10 per cent surcharge on imports makes foreign products less competi tive on the US market and Is a major blow to Japan Britain West Germany rance and other countries that de pend heavily on their sales to America One immediate im pact of this will be to enhance the domestic competitiveness of US motor cars since the President also has re pealed a 7 per cent ex cise duty on new private vehicles These combined moves should go a long way towards improving one of the most sensitive areas of the US balance of trade observers said The possible conse quences of the American move were viewed with great seriousness in Brussels where Euro pean Economic Com munity sources said the very life of the Common Market as a trading en tity would be threatened If the Six did not take concerted action While members of the nine member commission cut short their holidays to hurry back to Brussels for an emergency session to day the commission LONDON Tuesday: The repercussions of President radi cal economic reforms yesterday closed foreign currency exchanges throughout the world touched off a frantic wave of selling on the Tokyo Stock Exchange and alarmed foreign in dustrialists Ministers civil serv ants and bankers broke off their holidays to hurry back to their nnnlola hacHlv GV ranged meetings to dis (pledge does not annul cuss the key plank in I the 1944 Bretton Woods the American package i Agreement under which of reforms suspension countries are obliged to of the pledge to convert support the dollar at its foreign dollars into gold official parity floor in at $35 an ounce (world markets 1 fivarnlcTht Representatives and bank oficlals gathered in London for talks on the fundamental revis ion of the international parity structure that will almost certainly follow the American an nouncement There was little formal comment from governments and international financial institutions But the action is widely inter preted as having in effect floated the dollar in relation to other cur rencies and many for eign newspapers used the words deval in their head lines AAP to oe determined US aaf He said Australia has This was important to net sought conversion of i Australia which had re tiA fn run its dollar balances into ceived substantial amounts of capital in 1 CANBERRA Tuesday: flow from the US in ormer Minister for the recent years TTip Trsasiirpl said present dol would contest the depu loi ha total I Ari I about $750 million of Parliamentary (from point eign assets of about Killen announcing rMATnA ttlAiilrt TWT PrtM $2375 million the deputy leadership It remained to be seen vacated the resig and this was of great nation vesterdav of for mer Prime Minister and for Defence John Gorton criticised the Liberal Party Tie sold fho issued a statement say i diac member should adopt a common position to de fend their interests and contribute to the re establishment of inter national moneta ry The American mea sures threw the money markets into confusion and trading was stopped almost everywhere In many countries banks would change only a limited number of US dollars for tourists and hotels generally would accept US dollars only in payment of bills refusing to change additional sums In unofficial dealings in various capitals the US dollar was chang ing hands at anything up to 5 per cent beneath parity The new 10 per cent surcharge on imports of manufactured goods helped touch off a wave of selling In Tokyo where stock prices suf fered their heaviest fall in history AUSTRALIA TO CO OPERATE CANBERRA Th ederal Treasurer Mr Billy Snedden said last night Australia py foreign banks had yet term capital from the be on their own account WQUIU could with other working towards a more effective inter national monetary system Mr Snedden said the any great practical 4twuJ chansp in the nosition I cations or me suspen Qf view he said of the US Similarly the tempor il to convert dollars heldary suspension of con vertioiuiy oi uoiiars mw 1 1 ether monetary assets exchanges would Minister MAAE rEIN rKIEINUD rMilCI I appears uuu iu a i to iwimartiatA nanioinn no com fj lAe LA CL 11 CL A1L1111 VL4ALV Vv I a CUHVCliiCAlLC 1 piM S2LAI1 Lilt MM'LIHHLH Mr Snedden said there! told trading banks that wnnld nnt tolAra te flip appeared to be no in otherwise Inform wav in which the party tpnnrn rn inrerrere wim ea Tneir ODeraciuna in tm i 1 normal flow of long foreign currencies would business WASHINGTON Tuesday (AAP): President Nixon has set the world on course towards the first basic reshuffle of the international exchange system in a quarter of a century and startled the American people with his I economic "revolution" The President bold and sweeping initiatives including a 90 day freer? on wages prices and rents and a 10 per cent import surcharge won generally favorable reaction from Congress and fl 1 major newspapers yesreraay But Americans were worried that the dol lar would be worth less abroad and someDemocrats felt the President had waited too long to act de cisively against nag ging inflation and unemployment By suspending the convertibility In to gold and opening negotiations for a change in currency values the President paved the way for a selective de valuation of the dollar against certain curren cies The series would to different currencies depending on the ex tent to which their parities were raised by negotiation The withdrawal of the gold convertibility Mr i ji VlK: ISSt Io IY Arsmicitreated gtue line offers pennnncnijiiB protection against all insect Infestations Maaafectured Bp CommenwaltK lV Guinea Ltd A avittaWe tfce terrUerg aclfl Looking for an INTERIOR PLYWOOD that get eaten by insects? Count on KLINKII PRO M1 I I VI DIB KsBII Bl (Sfeamships (Sfeamships.