Finance ministers from 127 nations held their first formal session of discussions at the Joint Annual Meeting of the World Bank and International Monetary Fund organisations in Washington on Monday (1 September).
SV & MV Delegates' cars arrive outside hotel and delegates enter (3 shots)
MV INTERIOR Delegates entering conference hall and meeting fellow delegates (2 shots)
CU West German Bank delegate (MUTE)
MV Saudi Arabian delegate (MUTE)
MV McNamara speaking
MV Delegates listening (MUTE)
CU Witteveen speaking
TRANSCRIPT: SEQ. 5: MCNAMARA: "The one billion people of the low-income nations have become the principal victims of the current economic turbulence. Many of the middle-income countries as well are facing a foreign exchange crisis. In the long run this can be met only by more exports. In the short run, they too need greater access to external capital."
SEQ. 7: WITTEVEENS: "The main focus of attention is on the domestic demand policies of the United States, the Federal Republic of Germany, and Japan. These countries bulk large in the world economy. They are in relatively favourable balance of payments positions, have made considerable progress in reducing inflation, and have large amounts of economic slack. It would not be reasonable to expect the United States, Germany and Japan to push expansionary measures to the point of incurring undue risks with respect to inflation. But it is reasonable - indeed, necessary - to ask these three countries to conduct their demand policies so as to take particular account of the international recession and of the serious constraints felt by many other countries in pursuing an expansionary course. Other countries that find themselves in similarly strong positions should accept a similar responsibility."
Initials CL/1840 0310/1630/1855
This film is serviced with extracts on sound from the speeches of Mr. McNamara and Mr. Witteveen. The following is a transcript of those extracts.
Script is copyright Reuters Limited. All rights reserved
Background: Finance ministers from 127 nations held their first formal session of discussions at the Joint Annual Meeting of the World Bank and International Monetary Fund organisations in Washington on Monday (1 September). The day before, during a preliminary meeting, they had taken the first concrete steps towards reforming the international monetary system.
However, the two main speakers in the first formal session - Mr. Robert McNamara, the President of the World Bank, and Mr. H. Johannes Witteveen, the Chairman of the IMF - warned of the difficulties and problems ahead before the World could recover from the current international recession.
Mr. McNamara proposed that the World Bank should increase its loan commitments to 7,000 million dollars (3,500 million sterling approximately) in the current financial year. This would represent an increase of about 1,000 million dollars (500 million sterling approximately) over last year's commitments. He also said that the Bank's loan commitments over the next five years should be approximately 40,000 million dollars (20,000 million sterling approximately).
Though it represented the largest programme of financial and technical assistance ever undertaken to assist developing countries, he said, it would still fall far short of meeting the full scope of the capital needed by those countries.
Another gloomy note was struck by Mr. Witteveen when he opened the formal meeting. He pointed out that a striking feature of 1974 was that, despite a sizeable decline in output, the rapid price increases already in process not only continued but accelerated in the second half of the year to an annual rate of more than 13 per cent for industrial countries. The acceleration of price increases that actually took place made a fall in output unavoidable and led to a deepening of the recession during the first half of 1975.
Mr. Witteveen said that although the rate of price increases was likely to continue to decline during the second half of this year, there was still a real danger that the impending economic recovery on the industrial world would get under way with the rate of inflation still unacceptably high by past standards.