EXPANSION OF TRADE BY BRITAIN

Press, Volume LXXXIII, Issue 25274, 28 August 1947, Page 7

EXPANSION OF TRADE BY BRITAIN

“Non-Discrimination Clause In Abeyance”

REPORTED RESULT OF TALKS WITH AMERICA

(N.Z. Press Association—Copyright) (Rec. 9 p.m.) WASHINGTON, August 26. “Although the United States Secretary of the Treasury (Mr John Snyder) may insist publicly that no official modification of the non-discnminatory clause of the British-American financial agreement has been made, it can be stated on good authority that for the time being Article 9 of the agreement is m abeyance and that Britain’s Empire trade can be expanded pending a final decision by the American authorities,” says Reuters. “It is believed that a general informal agreement emerging from last weeks talks implied that Britain had no choice but to resume trading in the soft currency areas.” The president of the International Bank for Reconstruction and Development (Mr John J. McCloy) said to-day that he believed it was unwise to write off Britain too quickly. “I am not convinced that the disastrous British economic crisis is inevitable,” he said. “They are a sturdy people, these British. They have a good busmess sense and their internal budgetary situation is good. I think they are aware of their problems and are beginning to analyse them.” Apart from this, Mr McCloy had nothing to say of his conversation last week with Sir Wilfrid Eady, leader of the British mission to Washington, but he reiterated that he had not received anything in the nature of an application for a loan from the British Government. He said the bank was not able to give Britain a general loan for current expenses but it would undoubtedly give close consideration to any application which involved the reconstruction of industry, such as the reequipping of mines and textile machinery.

“It is expected that although Britons will have to tighten their belts a little more, the Government’s austerity measures, which will be announced towards the end of the week, will be tempered by the promise of valuable assistance to Britain from the Dominions and colonies,” says Reuters Parliamentary correspondent. “Discussions in the last few days between colonial and Dominion representatives and high British Government authorities are believed to have been concerned with the implementation of food and other measures to tide Britain over the emergency. The will to help Britain could not be stronger. All that is required is the easement of the non-discrimination clause of the loan agreement. “Well-informed quarters believe that Sir Wilfred Eacjy brought back en-

couraging information for Britain on this clause. Technically, only Congress can revoke the clause, but the United States is expected to attach the greatest importance to her moral position in world recovery, and to avoid the embarrassment which would probably result from insisting upon the imposition of the clause while the Dominions are eager to send aid. “The United States might regard the ignoring of the article as her contribution to Britain’s recovery if, as has been suggested, assistance outside the Marshall Plan is not possible. “The first hint of the Government’s future intentions may come from Mr Ernest Bevin, who plans to make a speech of far-reaching importance at the Trades Union Congress which opens on September 1.”