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OECD pledges help to fight against rising unemployment
PARIS. May 20 : Western industrial nations and Japan agreed here Monday lo stay the course oh economic policy despite the weakness of the upcoming economic recovery and said an urgent successful outcome to trade negotiations was "essential" for sustainable growth, reports AH'.
Ministers of the 24-nalton Organisation for Economic Cooperation and Development (OECD) tn a final communique broadly echoed the prescriptions for fiscal deficit-cutting and monetary caution endorsed by the Group of Seven (0-7) countries in Washington, fast month.
Winding up their two-day annual meeting here, the OECD countries also pledged their resolve to pursue reform of economic structures "with renewed vigour" in order to promote growth and help fighting high and rising uncm-: ploy men t.
Although fighting Inflation has often taken precedence over concern about the fabless
at OECD meetings, they said this was "a top priority."
Norwegian Finance Minister Slgbjorn Johnsen, who chaired the talks, said the OECD Secretariat was asked lo probe the reasons why traditional remedies for large-scale unemployment hud failed lo work owr the past decade.
On trade, the ministers agreed without difficulty that "an early conclusion" to the six-year old Uruguay Round bargaining In Geneva on world trade liberalisation was "needed urgently."
The stalled negotiations need to be reinvigorated, they said,, adding that any "further delay risks losing the momentum necessary for the conclusion of the round."
The ministers also asked the OECD to look beyond the Uruguay Round by working on improvement on the multilateral framework in such areas as competition policy and in
On the economic outlook, the ministers agreed |hal with
reduced inflationary pressures and lower short-term interest rates., at least outside Continental Europe. the acene was set for a "gradual recovery this year, with a further strengthening of OECD growth In 1992
■ Ministerial aides said the United States and tome European countries, which earlier pressed Japan to fur thcr stimulate domestic growth and pushed for lower short-term rates In Germany, adopted a less confrontational line.
There was no real bashing of any particular country," one official said.
But Japanese officials said there had been 'lively" discus ston on the wording of the text in a drafting group, and a US official suggested the Issue might resurface al the Muni-h summit of the G-7 countries, to be hosted by German Chancellor Helmut Kohl in early July.