United States Economy.
On the American economy, Mr: Stans said that the
rate or inflation in the last few months had been
unacceptable and the President was determined that it
must be controlled. The United States Administration
was of the opinion that the measures already taken would
be adequate. But the position would be watched, and if more steps were necessary, they would be taken. Administration would also be watching for any over kill.
He believed that the psychology of inflation had now been conquered; it was now necessary to deal with the fact of
inflation.
The
On the American balance of payments, Mr. Stans said that last year's small surplus would not be repeated this
year. It was essential to the United States to improve
their trade balance. They did not want to adversely
affect the United Kingdom, but it would be necessary to put pressure on Germany and Italy and, in particular, Japan. The United States' exports were only some 4 per cent of gross national product and it would make a great difference
if this could be increased to 4 per cent.
The Prime Minister said that we recognised that, just
as a strong British balance or payments was important to
the United States, so the United States balance of payments position was critical to the whole free world. He referred to the all time high rates of interest in the United States and the clawing back of funds from the Euro-dollar market The Chancellor would be visiting the
by American banks!
/United States
Page 45Page 46