Evening star., 1962-09-20
Continued From Page Al

Continued From Page Al
mined to follow the only other
feasible course-not the unac-
ceptable courses Of restriction,
isolation or deflation, but the
course Of true co-operation-of
liberal payments and trade-of
sharing the cost Of our NATO
and Pacific defenses-of shar-
ing the cost Of the free worlds
development aid-and Of work
ing together on steps to greater
international stability. with
other curreneies in addition to
the dollar bearing an increas-
ing share Of its central respon-
sibilities."
Notes U. 5. Gains
Mr.. Kennedy said that some
sharing Of responsibilities has
been achieved and the United
States has made considerable
progress toward eliminating ths
deficit in its balance Of pay.
ments.
He said steps already taken
to strengthen the monetary
system can be expanded. but
did not refer TO the radical plan
proposed yesterday by Reginald
MAldling, Britain's Chancellor
Of the Exchequer.
Discussing the domestic econ
omy briefly, the President
said the recovery from the
1960-6l recession in the United
States has been Substantial"
although mot all that we had
hoped" He emphasized that
the economy has expanded
without initiation.
Summing up his view Of eco
nomic issues, Mr.. Kennedy said:
"We who are meeting here
today do not intend 10 be mas
tered by our money or none
tary problems. We intend to
master them. with unity and
geflerosity-and we shall DO
50 tn the name Of freedom"
The United States. expressing
the administrations views
through q Treasury spokesman,
avoided outright rejection Of
the monetary plan proposed
yesterday by Mr.. Maudling.
Many Questions Raised
The spokesman said the plan
was too vague for specific ap-
praisal. But he raised many
questions about whether the
plan would wrest control of the
dollar away from the United
States and give the initiative to
other countries. II that is the
case, he said, the United States
win be against the plan.
furthermore, the United
States official said, the Maud
ling plan Is not needed now and
will not be needed for the next
five or 10 years. at least. He
said steps taken during the past
year by the United States and
European countries should be
adequate to handle all inter.
national monetary problems for
many years. -.
But there is no harm in ex-
ploring ideas for the distant
future, the spokesman said.
Both Mr.. Maudling and the
American spokesman took pains
to emphasize that the Maudling
plan is not designed to deal
with any imminent emergency.
In fact. they said. now Is q
goed time 10 discuss long-range
id6es because the monetary
system is 30 strong and calm.
The Maudling plan involves
elements Of the controversial
gold value guarantee and
super-bank ideas. Robert Trif.
fiii, author Of much-discussed
monetary plans, said the
Moulding proposal was close to
hid plan. But American and
British sources said the kin
ship between the Maudling and
Taffin plans was remote.
Mr.. Maudling's plan is de-
signed to increase the supply
of scurrencies usable as none
taty reserves, so that a shortage
of.reserves will not impede the
growth of world trade and pro-
duction.
Urges Mutual Account
Mr.. Maudling proposed to-
establish a mutual currency
account" in the Interna-
tional Monetary Fund. n
Ffhnce. for example. decided
that the dollar was growing
weak, it could deposit its excess
dollar holdings in the account.
F1ence would receive as evi-
dence Of the deposit a certif-
icate, which it could count as
part of its monetary reserves.
The United States through the
MP would guarantee the stable
vaiue Of the dollar deposits and
So the value of the certificate.
II the dollar lost value, the