CAB128-94_A1b — Page 133

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agricultural products. The Federal

The Federal Republic of Germany's (FRG's) balance of payments surpluses with European Community countries were a major problem, despite FRG assurances that after 1992 these would simply be regional differences.

Continuing, the CHANCELLOR OF THE EXCHEQUER said that at the Annual Meetings, there had been a general consensus

mong the major industrialised nations that the world

nomy was in reasonably good shape, and that growth was ely to continue with no significant risk of recession. The present worldwide problem of increased inflation was homing to an end, although the FRG Finance Minister had arbad that more needed to be done in this area. The difficult question of Japan and Britain's relative quota rankings had been successfully deferred. The United States Administration was divided about how much importance should

Congressional pressure against a General

Nevertheless the issue of quota ranking up substantively before the end of the

be attached be attached

Quota Increase was bound year.

Continuing, the

ELLOR OF THE EXCHEQUER said that there was a general coverage of views in the Group of 7 countries which had be amply demonstrated by their actions in the foreign change markets. The general view on debt this time was that the issue was less pressing since the private banks already written off large amounts of debt. At the

At the same time the United States Government expressed considerable anxiety about Latin American countries, mainly folitical reasons, and had put pressure on the banks for sure accommodating stance on the provision of new loans.

CHEQUE

VER

CHEQUER said that the

money and

Continuing, the CHANCELLOR OF THE main talking point at the Annual Meings had been the urgent need to help Poland and Hungary in their efforts to establish genuinely democratic political systems and free market economies. There was general agreement that the Western response should be a combination of practical help. The intervention of the forcan Commission was creating difficulties with th was moving ahead with its discussions as raply possible. He had been impressed by the new Finance Minister, Dr Balcerowicz, and the Economy Professor Trzeciakowski. The new Polish Ministers we firmly committed to promoting a genuine market economy although they had no illusions about the scale of the problems confronting them.

which

h

paster,

In a brief discussion, the FRIME MINISTER said that assistance for Poland and Hungary was of the very highest priority. Their efforts to establish democracy and free market economies must not be allowed to fail. The

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