DOMINICANS HALT TALKS WITH I.M.F. OVER ITS DEMANDS
The Dominican Republic suspended negotiations with the International Monetary Fund on Thursday after rejecting demands that gasoline prices be raised 50 percent, Dominican officials said today. A spokesman for President Salvador Jorge Blanco said the Government made the moves because it feared that a gasoline price increase would set off more violence in the country. Increases of up to 200 percent in the prices of some foods and most imported goods in late April resulted in three days of street riots that left about 60 people dead and hundreds injured. Some Latin American leaders said the violence was evidence that tough austerity conditions being demanded by the monetary fund in return for financial help had gone beyond the point of social tolerance.
