After a two-day meeting dominated by concern over recent sharp rises in United States interest rates, ministers from the 24-member countries of the Organisation for Economic Cooperation and Development ended their talks on May 18, agreeing on a strategy for world-wide economic recovery.
1. GV TRACKING SHOT Photographers and delegates taking seats 0.04
2. SV PULL BACK TOG V OECD President seated at the table, PAN TO other delegates 0.26
3. SV Representatives from Greece seated 0.29
4. SV Other delegates taking seats 0.38
5. SV PAN Delegates from Portugal with delegates from Britain, including Chancellor of the Exchequer Nigel Lawson 0.50
6. SV PAN Delegated from Australia, Austria, Belgium, Netherlands, Luxembourg, United States 1.30
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Background: PARIS, FRANCE
After a two-day meeting dominated by concern over recent sharp rises in United States interest rates, ministers from the 24-member countries of the Organisation for Economic Cooperation and Development ended their talks on May 18, agreeing on a strategy for world-wide economic recovery. During the talks, U.S. Treasury Secretary donald Regan defended his nation's economic policies, and rejected the argument that the massive U.S. budget deficit was a cause of high interest rates. For those nations that disagree with Mr. Regan's economic thinking, the news that the U.S. Senate had agreed to cut the deficit by 142 billion dollars over the next three years came as some relief of the end of the first day of talks. The meeting's final communique outlined a broad strategy to be pursued over the next few years. Interest rates should be reduced, inflation lowered, trade restrictions should be relaxed or dismantled, and the flow of resources to developing countries should be increased. These objectives are aimed at sustaining the world economic recovery and making inroads into high unemployment, particularly in europe. The final note od the meeting was one of optimism, as the world economic recovery is proceeding faster than expected. A growth rate of four per cent is expected for 1984, largely attributed to more buoyant world trade and a surge of activity in the United States. Inflation figures are also showing improvement, with the rate down to a ten-year low of five per cent among the member nations.