BRITAIN’S DOLLAR DIFFICULTIES

Press, Volume LXXXVII, Issue 26512, 29 August 1951, Page 7

BRITAIN’S DOLLAR DIFFICULTIES

New Crisis Predicted

NEW YORK, August 27. “Britain is working up to another ', dollar crisis,” says the financial editor of the Associated Press. “So far, in 1951, she has paid out 2.000.000,000 dollars more for goods from the rest of the world than she has obtained for what she solaT Yesterday the United Nations’ Economic Commission for Europe reported that the British economy was under a severe strain, and that inflation was rampant there. “High British officials are expected in Washington early in September to see what the United States can do. Some financial circles here say that they would not be surprised if Britain asked for another dollar loan, but j what she is more likely to do is to ’ask for a delay in the first repayment of the 70.000,000 dollars in interest and the 44,000,000 dollars on principal, - which is due next December, on the ' 1946 loan."

Carb on Dollar Imports “Others think that Britain will try for more outright economic aid, but '' this may find tough going in Congress. Britain is also expected to urge the Commonwealth nations to agree to new curbs on imports from the dollar countries. “Britain argues that she was doing all right with her economic recovery the United States began pushing .« her to speed up rearmament, she comnlains that she had to pay too high nrices for raw materials and must divert too much of them into arms and not enough into goods to be sold on the world market.

“The United States defence programme helped the sterling area to pile uo dollars and gold in 1950 from such items as rubber, tin and wool and made Britain’s trade balance favourable. The United States* cutting off of the Marshall dollars flow and baulking at the high prices of rubber, tin, and wool has caused a slump in the sterling area for dollars.”