FOR PRESS: RARPM. No. 4/ 1968
U. S. BALANCE OF PAYMENTS
AUSTRALIA U. S. DISCUSSIONS
JOINT COMMUNIQUE
The Economic Committee of Australian Cabinet and
associated officials met today with the U. S. Under Secretary of State
for Political Affairs, Mr Eugene V. Rostow, and his party. The
discussions continued throughout the day.
Mr Rostow came to Australia as special envoy of
President Johnson for the purpose of explaining and discussing the
short and long-term implications of the United States balance of payments
measures announced on January I by the President.
The talks were penetrating and frank.
The Australian Government expressed full and
immediate understanding and acceptance of the necessities which led
the United States to take its action, and expressed its support for the
overall objective of achieving a viable system of International payments
adequate to the needs of an expanding world economy. It acknowledged
the President's clear Intention to develop his programme of action without
sacrifice of U. S. commitments in the field of security or of its
contribution towards the needs of the developing world. This the Australian
Government applauded. The Australian Government noted that the proposed
adjustments were directed more particularly towards the countries In
balance of payments surplus and expressed the hope that these countries
would co-operate with the United States and other countries to achieve
the goals of the programme. The Australian Government gave a first assessment of
how some of the measures might affect Australia's economic position, and
explained the special circumstances of Australia's balance of payments
and reserves position arising from Its economic developmental needs and
its defence commitments in the South-East Asian area. Ministers
referred to the common Interests of Australia and the United States in
world trade, In security, and In aid to developing countries.
They expressed the view that the particular combination
of circumstances affecting the Australian balance of payments made it
necessary In the interest of both countries to keep any adverse effect
of the U. S. measures to a minimum.
To ensure this, there had to be a full understanding of the
consequences of the U. S. proposals. These consequences would become
apparent as the situation developed, and would require careful study over
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a period of time. For this purpose, -close consultation at both the
political and the official level would be maintained so that the special
interests and concerns of the Government of Australia would continue
to be taken into account at every stage of the development of the
United States programme. It was agreed that both Governments would work
together with other governments in their continuing effort to build
a unified and growing world economy based on the principles of
international co-operation and international responsibility.
CANBERRA, January, 1968.