PURCHASES OF STERLING

Press, Volume LXXXIII, Issue 25270, 23 August 1947, Page 9

PURCHASES OF STERLING

SUSPENSION ORDERED BY SWEDEN TALKS WITH BRITAIN POSTPONED (N.Z. Press Association—Copyright) (Rec. 7 p.m.) STOCKHOLM, Aug. 21. Sweden has ordered the suspension of all sterling purchases as a result of the British restriction of convertibility. The Swedish National Bank has issued an order applying from the time of the British suspension of convertibility. The bank has suspended the purchase of sterling by commercial banks, but banks may change up to £2O for travellers. The measures are temporary.

Britain’s action in suspending convertibility is described semi-officially as a “breach of the agreement.” The British Ambassador (Sir Bertrand Jerram) expressed Britain’s regret that Sweden had found it necessary to suspend sterling purchases. The Swedish authorities agreed with Sir Bertrand Jerram to postpone the British and Swedish talks which were to have begun on Tuesday. The Treasury in London denied a report that the British delegation which was to attend the Swedish talks would discuss a new payments agreement. The delegation was to negotiate British and Swedish commercial exchanges, according to the Treasury.