U.S. Dollar Cuts May
p. 23 · Read in the full issue
Mean Fewer Tourists
Pacific Islands leaders were closely studying the likely effects on them early in January of President Johnson's decision to reduce Ameri ca's balance of payments in 1968 by SUS3,OOO million.
US investment in developed countries outside of Western Europe, including Australia, are to be cut to 65 per cent, of the 1965-66 level, and investments in poorer countries will be limited to an increase of 10 per cent, on the 1965-66 average.
Tighter controls of US bank loans abroad are aimed at saving SUSSOO million.
American tourists have been asked to restrict travel for two years (to save $5OO million in 1968) and a crash programme to attract tourists to the US is being developed.
President Johnson's decisions are designed to strengthen the dollar and they mean that money will be tighter everywhere.
South Seas observers believe that as President Johnson's curbs on overseas investment do not apply to underdeveloped countries—and all the Pacific Islands are in this category—the hew measures will not affect the Islands directly. But there may be somewhat fewer tourists.