ollars. The main burden of the Chinese argument is that one precondition for financial assistance to member countries is that the Fund investigates, meddles and compels the member to adopt policies dictated by the I.M.F. (the aim being to allow the U.S. to dump goods onto underdeveloped economies and to allow penetration of these economies by U.S. monopolistic capital). The first point that needs to be made is that the Fund does investigate and make recommendations to potential borrowers. The Fund has certain aims which are clearly stated in its Articles of Agreement. These are broadly that countries should aim at free and multilateral trade and payments. These aims preclude trade restrictions such as tariffs and quotas and also payments restrictions such as multiple exchange tate systems. There is, however, no compulsion, the member countries’ governments have complete control of all domestic, economic and financial affairs. When the Fund began
Operations a transitional period of five years was envisaged during which trade and payments controls would be relaxed and gradually abandoned. Both types of controls still exist in many less developed economies, indicating that the Fund’s early expectations have not been met and the transitional period is now almost 20 years old. The U.S. is accused of exploitation by means of buying cheap and selling dear. This presumably refers to the adverse tendency in the terms of trade of less developed economies. In terms of the national interest of underdeveloped economies the exchange of unequal values might well be working the other way round, in that part of the output of primary products could not, under present circumstances, be consumed in the underdeveloped economies. The I.M.F, is not and was never intended to be Communist or socialist in its outlook. It is absurd to expect the product of a capitalist western world to be anything else. If economic aid (plus some degree of exploitation) is regarded as better than no aid, then in the interests of the underdeveloped countries, it must be accepted until the choice is between aid with no strings and aid with strings.
M. J. McCARTHY, Hull
Advertisers’ Announcement The Ninth World Youth Festival is scheduled to be held in Algiers from JULY 28th to AUGUST 7th. It is expected that 15,000 young people will take part. The International Preparatory Congress has announced that the Festival will concentrate on four major themes and that four days will be set aside for specific activities in connection with them. The themes are: (1) Friendship with people and youth; (2) Solidarity with Africa; (3) Solidarity with the peoples strusgling for national independence: (4) International co-operation. Anyone interested in going or receiying further information should write to “Festival”, 41 Bramcote Drive
the Algerian
. Lenton, Nottingham. Printed by Wm. J. Butler & Co. (T.U.), Bulwell, Nottineh=e: