CUT IN DOLLAR OIL PURCHASES

Press, Volume LXXXV, Issue 25994, 23 December 1949, Page 7

CUT IN DOLLAR OIL PURCHASES

V.S. Concern About New British Policy STATEMENT on current NEGOTIATIONS (N.Z. Press Association—Copyright) ♦'* jjc. 8.30 p.m.) WASHINGTON, December 21. The United States has expressed concern over the British ..rernment's decision to cut its oil purchases from the dollar The State Department, in defining the United States’ attire, said it was hoped that the current consultations in fashington between the two Governments would result in ittfon to minimise the effect of the British decision on American '] companies. The department said that during the dollar talks among the jinited States, Britain and Canada in Washington in September, Las estimated that the dollar drain on the United Kingdom and lie rest of the sterling area as a result of oil transactions for L financial year 1949-50 would run to about 710,000,000 Kollars. It was estimated that, of that sum, an expenditure of l.bout 340,000,000 dollars would arise from United States complies importing oil into the United Kingdom and the rest of tie sterling area, and receiving payment in dollars. It was also estimated that about 370,000,000 dollars of the drain would arise from the world-wide operations of British 0 2 companies, whose dollar expenditures included royalty payments to foreign governments, operating costs, and the purchase of materials and equipment. The latest estimates were somewhat less than these figures. The State Department said the current discussions looked towards an accommodation of the British necessity to save dollars, and the United States’ interest in the continuance of tmerican oil production abroad. Means were being considered h United States companies to reduce the dollar costs of their oreign operations.