Luxembourg, April 4: The European Monetary Co-operation Fund, first step to a possible European currency by 1980, was established in Luxembourg when the Chairman of the Common Market Council of Foreign Ministers, Mr. Renst Van Elslande, signed the document setting up the fund, two years after its creation was decided. The fund will be temporarily in Luxembourg, as a result of a compromise after a dispute which pitted little Luxembourg against Britain. The fund will have an initial capital of $1.80 million, to be used to support European currencies and keep them in line with each other. The fund which is to contribute to the establishment of a monetary union and to become part of a community organisation of central banks will in the first stage ensure functioning of the Community exchange system and will cover intra-Community settlements and the administration of short and very short-term financing. - AP
AFP reports: The EEC Commission yesterday came out for a “substantial” cut in tariffs during the coming GATT (General Agreement on Tariffs and Trade) multilateral trade negotiations. Giving details of the Commission’s proposals Vice-President Sir Christopher Soames said that the aim of negotiations should be to achieve “substantial reductions”, although the Commission felt the moment was not ripe for complete generalised tariff abolition. The EEC was putting forward no figures, but suggested a simple formula that could be applied generally, Sir Christopher said. His formula should take account of the tariff structures of the various countries in the negotiations. The biggest cuts should be on high tariffs and smaller cuts on medium rates. It might be possible to envisage no cuts on low tariffs. Although total abolition was not possible at the moment, some existing tariffs might be swept away.
