NON-DISCRIMINATION CLAUSE OF LOAN

Press, Volume LXXXIII, Issue 25276, 30 August 1947, Page 9

NON-DISCRIMINATION CLAUSE OF LOAN

APPARENT CONFLICT OF STATEMENTS (Special Correspondent N.Z.P.A.) (Rec. 9 p.m.) LONDON, August 29. The “Financial Times” says that the explanation of the apparent conflict between the statements made by Sir Wilfred Eady, leader of the British economic delegation, when he returned irom his Washington talks, and the recent statement by the United States Secretary of the Treasury (Mr John Snyder), claiming that the .non-dis-crimination clause of the American loan agreement had not been relaxed, is probably to be found in Article 14 of the International Monetary Fund constitution, to which the Chancellor of the Exchequer (Dr. Hugh Dalton) referred when he wrote to Mr Snyder explaining Britain’s intention to susP free convertibility of sterling. This article permits member K les .to maintain exchange restrictions during the post-war transitional phase.”

The invocation of this article was denied to Britain under Clause 8 ’of the American loan agreement, but with ine stipulation that “it can be agreed otherwise in special circumstances, after consultation between the two Governments.’ ’ The “Financial Times” says Mr ®nyder has apparently been .persuaded Jo regard Britain’s present predicament as “special circumstances,” and uas agreed to Britain invoking Article « of the Monetary Fund constitution. * + African Cricketers.— Kent, in fjs first innings against the South Africans, made 318 (Valentine 59, 80- Evans 61). Mann took six lc / et A for 132 runs. South Africa made 104 in its first innings, and in its second innings has lost none for 45. London, August 28.