In a United States television press conference on Monday. Treasury Secretary John Connally defended the?
MS Interior Connally on rostrum at news conference.
CU Connally speaking
TRANSCRIPT SEQ 2: CONNALLY: "We obviously had an unacceptable situation with respect to our balance of trade, where it looked like for the first time since 1893 we have had a deficit in the balance of trade. This was not acceptable to us. Last year the balance of payments on an official settlement basis was 10.7 billion dollars - much too high. We looked like we were heading for a similar year this year. It was not acceptable So a combination of events and circumstances, culminating in the time when the President felt it was important for him to act, to lay down a whole new series of actions encompassed in one broad economic policy directed towards the solution of these problems. He said in effect that we're going to have to enter into new negotiations looking for a more satisfactory arrangement with respect to exchange rates. Because we cannot continue to have a declining balance of trade and a declining balance of payments at the same time that we are providing the military and the security shield for the free world, and at the same time that we lead all the nations of the world in the amount of money that we contribute in the form of aid to the less-developed and the under-developed nations. And we can't continue to do that, we can't continue to spend that money, unless we begin to show a favourable balance of trade".
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Background: In a United States television press conference on Monday. Treasury Secretary John Connally defended the Nixon administration's new economic measures announced on Sunday night.
The following extract relates particularly to those parts of the package designed to cure the United States' balance of trade deficit.