important that US
interest rates should remain at relatively
law levels. The best chance of securing these two things is that cignificant reductions should be made in the Federal Budget deficit Re welcome the recognition of this by the United Statea
รา sho Beasures
10 Budget resol
can be seen only as a first step.
A better balance in the external trade of the United States sast inevitably imply a reduction in the net exports of other countsies to the United States. Incre is
no need for this to nean recassica for the world economy. Other major industrial countries
showing ā stronger recovery. Their performance can be helped extent by the impact of a lower dollar on their domestic costs and by the prospect of a gradual reduction in interest rates.
are
to make to the
The announced
Japan has a particularly important contribution process of adjustment. Although, Japanese growth and inflatioa performance have been
been enviable, they have relied too heavily on external demand. The recent appreciation of the yen exchange rate, particularly against the dollar, will help. intentions of the Japanese authorities to liberalise their financial markets and promote opportunities for increased imports are very much to be welcomed, but they need to be implemented and made effective quickly. And some further encouragement to Cumesrin consumption can surely be afforded in a country with domestic savings ratio.
There has been much talk,
at
so high
these and earlier annual meetings, in the Interia and Development Committees,
in the Group of 10
and elsewhere, of the need for better policy co-ordinatioa and mutual surveillance among Our countries. The agreement reac last month by the United States, Japan, Germany,
States, Japan, Germany, Prance and the United Kingdom marks an important advance in international econo co-operation.
Management of International Debt
This is the fourth auszive annual resting at which tha probl
of international dena
cominated our agenmis
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