BRITAIN MAY FREEZE DOMINION BALANCES IN LONDON

Evening Star, Issue 26184, 20 August 1947, Page 5

BRITAIN MAY FREEZE DOMINION BALANCES IN LONDON

(Rec, 10 a.in.) CANBERRA, August 18. If the British Mission to Washington fails to secure ' easing of the United States loan agreement Britain may foe forced to freeze all dominion, sterling balances in London. This warning was given to the Premiers’ Con- ' ference to-day by the Prime Minister, Mr Chifley.

Australia’s sterling balances in London : exceed £280,000,000. The Premiers were told that Australia not only had been compelled to cut her dollar expenditure in Canada and the United States, but that Britain hud .appealed for a cut in her imports from Britain. The outstanding item on this list was manufacturing machinery. The Premiers pointed out that such a. cut could have a serious effect ort local production and might retard the drive to overcome the present lag. Mr Chifley said that the full extent of the import cuts could not

, be decided until after the talks in Washington. The Minister for Health and Social Services, Senator McKenna, told the Conference that stringent economic controls are to be retained by the Commonwealth Government next year. Principal among them are prices, cloth-ing-rationing. land sales, interest rates, landlord ‘find tenancy, capital issues (relating to formation of companies and issue of new capital), female minimum rates, war service moratorium .regulations, and those dealing with enemy property and war damage and with agricultural production.