CONVERTIBILITY PLANS

Press, Volume XC, Issue 27401, 14 July 1954, Page 11

CONVERTIBILITY PLANS

Financial Talks In London (Special Correspondent N.Z.P.A.) (Rec. 11 p.m.) LONDON, July 13. The Chancellor of the Exchequer (Mr R. A. Butler) will preside at a financial conference in London this week at which representatives of seven European countries will discuss convertibility. The United States is sending a strong delegation headed by Mr Harold Stassen, Director of the Foreign Operations Administration. It is understood that the Americans will claim that currency convertibility must be accompanied by a steady drive towards liberalised non-discriminatory trading policies.

Financial correspondents in London say the Americans want widespread international adherence to trading rules that would reduce to the minimum the use of monetary and trade restrictions for balance of payments purposes. The “Financial Times” says it is expected in Washington that the discussions will be confined to the problems of convertibility and will not broaden into consideration of the prospects of individual countries for achieving convertibility. “While the United States will press for the earliest and widest possible acceptance of non-restrictive trading rules that contain non-discriminatory provision as a major feature, there will be no disposition on the part of the United States to prejudge the length of the period that will be required to place such rules in effect when the time for convertibility has arrived,’’ the paper says. “It is recognised, that judgments will vary widely on the question of timing, and there may well have to be a gradual adoption of a non-re-strictive system with an initial move perhaps not coming for some months after currencies have become convertible.”