FINAL CLAUSES

Evening Post, Volume CXL, Issue 138, 8 December 1945, Page 7

FINAL CLAUSES

TEXT OF AGREEMENT

Rec. 9 a.m. WASHINGTON, Dec. 7. The final provisions of the financial agreement between the United States and Britain are as follows:— 4. If a waiver of the amount of interest due in any one year is requested j Cor an interest payment prior to that due in 1955, the average income shall be computed for the calendar years from 1950 up to and including the year preceding that in which the request is made. 5. It is understood that any amounts required to discharge the United Kingdom obligations to third countries outstanding on the effective date of this agreement would be found from resources other than this line of credit. The United Kingdom.will not arrange any long-term loans from Governments within the British Commonwealth after December 6, 1045, and before the end of 1951 on terms more favourable to the lender than the tei-ms of this line of credit. A waiver of interest will not be requested or. allowed under Section <5) in any ye,n unless (he aggregate of the releasesj or the payment in that year of stcii-J

ing balances accumulated to the credit of overseas Governments, monetary authorities, and banks, except in the case of colonial dependencies before the effective date of this agreement, is reduced proportionately, and unless the interest payments due in that year are waived. The proportionate reduction of the releases or payments of sterl- j ing balances shall be calculated in relation to the aggregate releases and paid in the most recent year when a waiver of interest was not requested. The application of the principles set forth in this section shall be subject to full consultation between the two Governments as occasion may arise. FREEING STERLING. 6. The United Kingdom will complete arrangements as early as practicable, and in any case not later than one year after the effective date of this agreement—unless in exceptional cases a later date is agreed upon—by which, immediately after the completion of such arrangements, sterling receipts from current transactions of all sterling area countries (apart from any receipts arising from military expenditure by the United Kingdom before December 31, 1948, to the extent to which they are treated by agreement with the countries concerned on the same basis as balances accumulated during the war), will freely be available for current transactions in any currency area without discrimination arising from the so-called sterling area. The dollar pool will be entirely removed and each member of the sterling area will have its current sterling and dollar receipts at its free disposition for current transactions anywhere. NO EXCHANGE CONTROLS. 7. The United Kingdom agrees after ; I the effective date of this agreement ! not to apply exchange controls in such a manner as to restrict payments or < transfers in respect of products of the • United States permitted to be imported into the United Kingdom, or other cur- i rent transactions between the two ! countries or the use of sterling i balances to the credit of residents of i the United States arising from current 1 transactions. i Both Governments agree that- notii j later than one year after the elective | date of the agreement, unless in exceptional cases a later date is agreed upon, after consultation, they will impose no restrictions on payments and ( transfers for current transactions. J These obligations shall not apply to I balances of third countries and their < nationals accumulated before this para- i graph becomes effective, or to restric- ' tions imposed in conformity with the articles of the agreement of the Inter- i national Monetary Fund provided that. 1 both Governments will not continue to < invoke the provision of Article Four, 1 Section 2, of these articles after this ] [paragraph becomes effective, unless in j exceptional cases and after consulta- j tion they agree otherwise, or to re- ( strictions imposed in connection with ( measures designed to uncover and dis- \ (pose of assets of Germany and Japan , This section and Section 8, which j are in anticipation of more comprehen- t

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