The Governor argues the case for international economic co-operation if countries are to prosper. He warns against protectionist pressures and highlights the need to resolve the negotiations on the Uruguay Round of the GATT. In doing so, he draws some comparisons with the 1930s. The Governor also examines the particular importance of economic co-operation in Europe. He concludes that the European econol1'lies need to continue to strive for greater economic convergence, which will only occur if each nation successfully pursues the key macroeconomic objective of price stability.