XN000022-1978-04-26 — Page 6

WEDNESDAY, APRIL 26, 1978

FINANCIAL SECRETARY SPEAKS AT ASIAN DEVELOPMENT BANK MEETING

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THE +LURCH TO PROTECTIONISM+ WHICH HAS BECOME SO ALARMINGLY APPARENT IN THE LAST 12 MONTHS OR SO WILL UNDOUBTEDLY SLOW DOWN THE GROWTH RATE OF WORLD TRADE IN MANUFACTURES, AND GENERALLY.

THE FINANCIAL SECRETARY, MR. PHILIP HADDON-CAVE, SAID THIS YESTERDAY (TUESDAY) DURING A SPEECH TO THE 11TH ANNUAL MEETING OF THE BOARD OF GOVERNORS OF THE ASIAN DEVELOPMENT BANK BEING HELD IN VIENNA.

MR. HADDON-CAVE SAID THAT PROTECTIONISM WOULD THUS BE A SELF-DEFEATING PROCESS IN THE LONG RUN.

+CERTAINLY, PROTECTIONISM WILL PROVE TO BE NO CURE FOR UNEMPLOYMENT AND INFLATION, HE SAID. +HOWEVER, IF CERTAIN DEVELOPED COUNTRIES IN EUROPE, NORTH AMERICA AND ELSEWHERE ARE DETERMINED, FOR THE TIME BEING, TO PLACE A DEGREE OF RELIANCE ON NATIONAL OR REGIONAL SELF-SUFFICIENCY IN PRODUCTS WHICH THEY WOULD OTHERWISE OBTAIN THROUGH THE MECHANISM OF WORLD TRADE, THEN I CAN SEE NO ALTERNATIVE BUT FOR REGIONAL DEVELOPMENT BANKS TO STRESS REGIONAL SELF-SUFFICIENCY IN THEIR LENDING FOR DEVELOPMENT.+

THIS WOULD REQUIRE THE ASIAN DEVELOPMENT BANK TO MATCH ITS INVOLVEMENT IN THE DEVELOPMENT PROCESS IN INDIVIDUAL MEMBER COUNTRIES WITH A STRATEGIC VIEW OF THE DEVELOPMENT OF THE ASIAN AND PACIFIC REGION AS A WHOLE - THAT WAS TO SAY, IN ITS INNOVATIVE ROLE, THE BANK WOULD SEEK TO SUPPORT PROJECTS WHICH WERE DESIGNED SPECIFICALLY TO PROMOTE INTRA-REGIONAL TRADE, MR. HADDON-CAVE POINTED OUT.

+THIS IS NOT AN APPROACH WHICH WOULD BE DEFENSIBLE IN A MORE LIBERAL WORLD TRADING ENVIRONMENT, MR. HADDON-CAVE CONTINUED, +BUT THERE ARE CERTAIN IMPLICATIONS OF PROTECTIONISM WHICH ARE INESCAPABLE (A SLOW DOWN IN THE GROWTH RATE OF EVEN DYNAMIC ECONOMIES FOR INSTANCE) AND WHICH MUST HAVE AN INFLUENCE ON THE POLICIES PURSUED BY THOSE ADVERSELY AFFECTED.

+PERHAPS, WHEN IT IS REALISED BY PROTECTIONIST GOVERNMENTS THAT THERE IS AN UNPALATABLE REALITY ABOUT PROTECTIONISM, THAT IS TO SAY, WHEN THEY REALISE THAT PROTECTIONISM IS BOUND TO HAVE CONSEQUENCES WHICH DAMAGE ALL MEMBERS OF THE WORLD TRADING ECONOMY, MORE LIBERAL AND HENCE MORE EFFECTIVE EVEN FROM A NATIONAL ISTIC POINT OF VIEW -- TRADE POLICIES WILL BE FOLLOWED.+

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COMMENTING ON THE BANK'S POSSIBLE ROLE OF PROGRAMME LENDING, MR. HADDON-CAVE SUGGESTED THAT FAMILY PLANNING MIGHT BE A SUITABLE FIELD FOR SUCH LOAN. HE SAID HE REALISED THAT, HITHERTO, SO FAR AS INTERNATIONAL DEVELOPMENT INSTITUTIONS WERE CONCERNED, POPULATION CONTROL PROGRAMMES HAD BEEN THE SPECIAL PRESERVE OF THE WORLD BANK WHICH HAD BUILT UP A WEALTH OF COMPARATIVE

EXPERIENCE.

/+BUT I DOUBT,