Fifty years ago | Socialist states want greater role for gold

Nairobi, May 27: The socialist group of countries has suggested that the role of gold should be enhanced in international liquidity in order to normalise the international monetary situation and bring about “gradual abolition and banning of monopolistic position held by one or several national currencies”. In a position paper on money and finance circulated to delegates, attending UNCTAD IV meeting here, socialist countries say since SDRs (special drawing rights) do not represent real value they cannot replace gold as the basis of an international monetary system. It however supports the view that developing countries should get part of SDRs as aid so long as the SDR system exists. On debt problem, the paper says: “Equitably advantageous” economic co-operation between socialist States and developing countries does not give rise to debt problem.

In view of basically different technical and economic relations with developing countries socialist States consider it “unfounded to appeal to them to share responsibility” of eliminating consequences of colonialism and of trade and monetary crisis of capitalist economy, the paper adds. European Common Market countries yesterday agreed on a joint position on debts owed by developing countries, one of the major stumbling blocks at the United Nations Conference on Trade and Development (UNCTAD) here, EEC delegates said.

But they were still deadlocked on the other main area of disagreement, the issue of financing buffer stocks and commodities to stabilise prices. Delegates said the Common Market position was likely to be accepted by other developed non-communist nations.

But they said the position fell well short of demands by developing countries which want a general rescheduling of debts including write-offs for the poorest nations.