BRETTON WOODS AGREEMENT

Press, Volume LXXXII, Issue 24815, 4 March 1946, Page 5

BRETTON WOODS AGREEMENT

DECISION POSTPONED IN INDIA

(Rec. 10 p.m.) LONDON, March 2. The Central Legislative Assembly has decided to postpone its decision as to whether India should continue to adhere to the Breton Woods agreement, but it has authorised the Government to nominate a governor and director of the international fund, and bank, says the New Delhi correspondent of “The Times.”

The Opposition, during the dabate, strongly opposed any scaling down of India’s sterling balances. A Congress Party spokesman said that Britain could not request such a step until she had mobilised and handed over all the transferable assets of British nationals in India and also, if necessary, the ships and the British mercantile marine and property in England. India was not committed in any way to scaling down her sterling balances, said Sir Archibald Rowlands, presenting the Budget to the India Assembly, states Reuter’s correspondent in New Delhi. He recommended that the delegation for forthcoming talks on this subject should co-opt representatives of the leading political parties and other non-officials. It would be premature and unprofitable for India to withdraw from the Empire dollar pool, he said. India’s trade balance with the United States had been unfavourable for some months. Share in Dollar Pool Sir Archibald Rowlands said he wished to correct fantastic guesses about India’s contribution to the dollar pool. Contributions exceeded withdrawals by about £37,000,000 at March, 1945. . He presented a Budget m which revenue was estimated at £230,000,000, defence expenditure £182.000,000, and civil expenditure £84,000.000. The prospective deficit was £36,500,000. The British Government expected to spend £31.500.000 in India during the J ear. compared with £260,000,000 during the year just ended. Budget points were a discontinuance of the excess profits tax after March 31. a grant of a special depreciation allowance to industry, relief for industry in customs duties, and also a reduction in duty on motor spirit to Is a fhe° statement outlined a housing scheme in which the Central Government is providing 12J per cent if a local authority is prepared to duplicate the subsidy. An Industrial Finance Corporation will be established to ensure the availability of medium and long-term credits to industry.