Conditions for Aid to Be Tightened

Press, Volume LXXXV, Issue 25955, 8 November 1949, Page 5

Conditions for Aid to Be Tightened

united states pressing FOR CHANGE (NJZ. Press Association—Copyright) (Rec. 11 p.m.) WASHINGTON, November 6. itie International Monetary Fund, under pressure from the United States, is tightening up its dollar aid to member countries. Diplomatic sources said that the United States proposed that the fund should obtain a specific date for repayment from any country applying for dollars. The United States was also emphasising the need for the repayment as promptly os possible of funds already withdrawn. The aims were to make the fund truly revolving, so that currency collections from one nation would become available for use by another; and to ensure that the fund would have resources in 1951 to step into its intended role as a readv source for currencies needed in foreign trade. This would replace Marshall aid grants. It is understood that no formal action has been taken bv the fund, but none is needed. The United States’ voting strength on the board is considered sufficient to give her practically a veto over any proposed dollar outlays.

The fund was established three years ■go as an international currencies pool. h U t it has become largely an exit channel for dollars. Of 737,300,000 dollars so far withdrawn, less than 2,500,000 dollars has been repaid. The fund does not lend currency; currency is sold. For example, when Britain obtained 300,000,000 dollars 4n 1947, she paid into the fund the equivalent sum in pounds. When she repays she will buy back her pounds with dollars.