CONVERTIBILITY OF STERLING OF FIRST-RATE IMPORTANCE

Evening Star, Issue 26185, 21 August 1947, Page 7

CONVERTIBILITY OF STERLING OF FIRST-RATE IMPORTANCE

(Rec._9 a.m.) LONDON, Aug. 20. It is understood that , the British delegation in Washington has received instructions to do its utmost to secure an arrangement enabling the Government to maintain the principle of the convertibility of sterling, says the ‘ Financial Times.’ Such arrangement would enable the British Treasury to reserve the unspent balance of ' the dollar loan for financing British requirements. Should the United States negotiators agree to the proposed formula it would enable the Government to maintain convertibility even after the proceeds of the dollar loan have been exhausted without, having to draw on its own gold reserves for that purpose. The paper adds that Mr Dalton, Chancellor of the Exchequer, is believed to have succeeded in convincing Cabinet that the maintenance of convertibility is a matter of. first-rate importance from the viewpoint of the Government’s prestige and that no sacrifice must be spared in the interests of avoiding suspension. The ‘ Daily Herald’s ’ political correspondent says that fresh instructions for the British delegation in Washington will probably he carried by Lord Tnveychapel, the British Ambassador, who is flying hack from leave in .England a month before schedule.