PAYMENTS BY FRANCE

Greymouth Evening Star, 19 September 1946, Page 7

PAYMENTS BY FRANCE

NEW ARRANGEMENT WITH ’ BRITAIN £10,000,000 DEFICIT LONDON, September 17. “A panel of British and French economic experts has reached a basis for future British-French economic payments,” says the Exchange Telegraph Agency’s Paris correspondent. “France’s balance of payments to Britain is already badly in arrears, and the £ 10,000,000 deficit will remain for several years. “France, under the previous arrangements, made payments of onethird in gold and the remainder by sterling securities.‘Under the new arrangement, she will continue to make repayments of one-third in gold, but’ will cease earmarking the remaining two-thirds in sterling securities, which may be used by France for tier current account. Arrears will be refunded as from September 1, 1946. The . first payment will be delayed five years, after which payments will be spread over 10 years at a low rate of interest.” The correspondent comments that a great part of French purchases from Britain consists of • British-bought Australian wool and also military aircraft, motor vehicles, and chemical products. The Dominions will make their own financial and commercial adjustments with France. The new agreement is not- expected to alter the British-French exchange rate.