Monetary experts of ten industrial nations began two days of talks on the impact of the oil crisis on their balance of payments, in Tokyo, Japan, on Thursday (18 April).
TEMPLE: TOKYO PRINCE HOTEL: SIGN - 'WORKING PARTY': MEETING: CHAIRMAN DR. EMMINGER: UNITED KINGDOM AND US DELEGATES.
Initials AE/17.56 AE/17.15
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Background: Monetary experts of ten industrial nations began two days of talks on the impact of the oil crisis on their balance of payments, in Tokyo, Japan, on Thursday (18 April).
The working party of the Organisation for Economic Cooperation and Development (DECD) is expected to debate ways of recycling the massive dollar earnings of the Arab oil producing nations.
Dr. Otmar Emminger, Vice President of the West German Bundesbank, is chairman of the meeting which included Paul Volcker, US Treasury Undersecretary; Andre de Lattre, Deputy Governor of the Bank of France; Derek Mitchell, British Treasury First Secretary; Koivhi Inamura, Japanese Vice Minister of Finance for International Affairs, and Jeremy Morese, British chairman of the international Monetary Fund Committe on Currency Reform.
At their last meeting in Paris in January experts estimated that the oil crisis could cause deficits of 40,000 million dollars (about 17,390 million sterling) this year for the 24 OECD countries.
The working party will discuss how to avoid international competition in borrowing in the Eurodollar market, reducing the value of currencies and artificially promoting exports or restricting imports. They will also try to agree to maintain aid to the developing countries despite the higher oil prices.