European Stars and Stripes (Newspaper) - September 21, 1967, Darmstadt, Hesse                                Page 4 the stars and stripes thursday september 21, 1967 historic finance meeting nations to create new kind of world Money editor s note after years of debate the nations of the free world have finally agreed to create a new kind of world Money which i needed to permit an expansion of world Trade. Representatives of 106 nations will put the finishing touches on the new Money scheme next week in Rio do Janeiro Brazil. A up financial specialist who will attend the historic meeting explains what it s All about. Followings the first of a two part series on the complicate subject. Up by John Pierson Washington up representatives of 106 nations gather in Rio de Janeiro this week end to try to make the world hire prosperous. This year s joint meeting of the International monetary fund Ime and world Bank i Likely to go Down in history As the one where men finally put their Heads together and agreed to create a new kind of world Money that will help Gold and dollars finance Trade among nations. President Johnson has called the proposed monetary plan the greatest Forward step i world financial cooperation since the if itself was Cre ated following the depression and world War  Rich nations of the West the so called group of ten have already approved the plan last month in London. Approval in Rio by the 106 governors of the if is a foregone conclusion particularly since the ten have a majority of theims s voting Power. The ten Are Belgium Brit Ain Canada France Germany Italy Japan the Netherlands Sweden and the United states. Nevertheless the week Long meeting at Rio s new museum of modern Art will pro tide important clues to How soon the europeans Are going to agree to Start cranking the Money machine and under what conditions the common mar Ket France Germany Italy Belgium the Netherlands and Luxembourg went along wit the United states and the rest of the ten at London but Only after winning veto Power. The six now have the Power to say no even if the United states and All the rest of the world want to Start producing the new  practically had to be dragged to the signing table and some of its common mar Ket partners remain sceptical about How urgently the new Money is needed. They also fear that too much of it May come into being causing  the important question will the world have enough Money in the years ahead to finance an expansion of its Trade has by no Means been finally resolved. There is another crucial unanswered question which will occupy the delegates Atrio. Is the Rich one third of Mankind going to increase i said to the two thirds who still live in poverty the world Bank s affiliate the International development association Ida is broke. Candida is the organization that lends Money on very easy terms to the poorest countries those that simply cannot afford to commercial or even the Bank s sem commercial interest rates and maturity schedules. The Bank s president George Woods has suggested that the Rich nations give Ida $1,000million a year for three years four times their present contribution. The United states has suggested a slightly smaller sum and has agreed to contrib Ute its share but Only if there can be safeguards to keep the Aid dollars from coming Home As claims on the dwindling  Stock. The United states has offered to make some of its contribution without strings but want the remainder to depend on . Firms getting a fair share of the contracts let for Ida  of the other Rich coun tries feel less generous than the United states. And Britain opposes the . Plan to protect its Gold Stock since this could Cost the British millions of Dol Lars in overseas  Ida will get More Money. But whether it will be enough to make a Dent in world poverty remains to be  is a relatively recent addition to the world  came into existence in 1960. The world Bank whose formal name is the International Bank for reconstruction and devel radar detection missile defense Long Range Short Range missile defense these Are the key parts of the improved Nike a antimissile defense the . Will soon build to guard against possible nuclear attack by red China. The Long Range missile in the system could be the Nike zeus or More probably its successor the spartan. Sprint missiles would be fired to intercept enemy missiles that get by the spartans. A Thant lists 5 principles for solution in Mideast by William n. Oatis United nations a . Secretary general u Thant said tuesday he feared there would be a new War in the Middle East in a few year sunless there was Progress to Ward eliminating the causes of the one the israelis and the arabs fought last  Laid Down five principles for a solution and said the parties were already committed to them under the . Charter and the 1949 armistice agree  sounded his warning and sketched his plan in an introduction to his annual report published just As the general Assembly was to open its 22nd regular session with the Middle East As the main Issue. I am bound to express my fear he declared. If again no Effort is exerted and no Progress is made toward re moving the Root causes of conflict within a few years at the most there will be ineluctably anew eruption of  Thant listed certain Funda mental principles which have application to the  one was that the territorial integ Rity of every state be respected and the occupation by military Force of the territory of on estate by another cannot be con  were that 2 every state s right to exist must be accepted by All other states 3 every state is entitled Tobe secure within its own Bor Ders 4 people everywhere including the Palestine Arab refugees have a natural right an appetite for solving prob lems by  he said that despite the Dis appointment of Many . Members at the world court decision against african applications on the South West Africa Issue the court should not be subjected to political pressures in the course of its work or As the result of a particular  Thant said . Efforts to in Duce South Africa to drop apart Heid or race segregation Hadnot had a significant Impact on the  Ozment and the if were founded at the historic eco nomic conference at bretto Woods n.h., in 1944. The Bank s first Loans were to help Europe rebuild after the War. But gradually the Bank with 106 members turned its attention to its poorer member countries. To Date it has Lent More than $10,400 million to finance economic development projects in Over 80 lands. The Bank charges six percent for its Loans. Ida the Bank s soft loan window lends Money without interest. So far Ida has loaned $1,700million. The Bank and Ida lend to governments As Well As Pri vate enterprises. The if approaches the problem of world Prosperity from a different Angle. The fundis concerned mainly with main Taining the flow of world  has $21,000 million in Gold and foreign currencies to lend its member governments when they experience balance of pay ments deficits. In other words the if helps tide countries Over times when they Are spending More than they Are earning in the world. Thus the fund provides re serves in addition to the Gold . Dollars and to a lesser extent pounds Sterling that governments hold in their own treasuries against such Rainy Days. Under the rules of the International monetary game governments Are obliged to spend their reserves in order to maintain the value of their currencies on the foreign Exchange markets of the  is widely agreed that if cur Rency values were allowed to fluctuate widely International traders would be reluctant Toby the foreign currencies they must buy to Purchase goo sat Road. World Trade would suf Fer. Trade could also collapse Asit did in the 1930s, if govern ments lacking a Lender of Las resort like the if were forced to restrict imports in a Effort to hold onto their remain ing  far 64 countries including the United states have drawn$13.2 billion from the fund of which $5.2 billion is currently outstanding and must be repaid. In addition to the if s regular quotas totalling $21 billion the group. Of ten countries have agreed to lend the fund up to $6 billion More in an Emer gency. But now the Rich nations of the West prodded by the United states have concluded that additional reserves will be needed in the years ahead if world Trade is going to expand As it . What kind of Money to be in their Homeland and 5 there should be free and unimpeded navigation for Al through International water ways according to  Thant s introduction to his an Nual report was a 62-Page political essay to precede a fac Tual account of the . S work in the year ended june 15, is sued a few weeks Back. In it he deplored the re course to violence and threats of violence through the world. Glamorized by mass Media thus instilling in society and particularly in the Young ripes european edition col. James w. Campbell Usa editor in chief it. Col. F. 8. Michael jr., Usan Deputy editor in chief Arnold Burnett managing editor Elmer d. Frank production manager Henry 8. Epstein. Circulation manage an unofficial newspaper of and for the . Armed Force printed Dally at Darmstadt Germany under the auspice of the office of the chief of Public affair. He Usa eur. Military address the Star and stripes Apo 09178. International malls the stars and stripes Postrach 1034, full Darmstadt Germany. Tell or Eshelm c prefix 06165 2071