Address by Mr Henri Simonet
Vice-President of the Commission of the European Communities
"...But in countries which were already in a weaker position, the oil deficit cannot be met out of monetary reserves. Indeed, these reserves would be exhausted in a few months. Even if monetary gold were valued at a market related price, these countries could not in the short term foot the bill. And it is a moot point whether the oil-producing countries would in fact put up with such an official increase in the price of gold without demanding a parallel increase in the price of oil. The monetary reserve instrument should therefore be handled with caution, and for the countries hardest hit it is not adequate..."