Dollar Conference“U.S. DELEGATES WILL AVOID STERLING DEVALUATION”

Greymouth Evening Star, 2 September 1949, Page 6

Dollar Conference—“U.S. DELEGATES WILL AVOID STERLING DEVALUATION”

NEW YORK, August 31.—“ The American representatives at the dollar talks among the United States, Britain, and Canada are under orders to avoid the subject of sterling devaluation,” says the Washington correspondent of the New York Times. “Members of the ‘ United States Cabinet have determined that the point at which sterling is to be pegged ultimately is a British problem. American experts are almost unanimous that the British cannot hope to improve their competitive position with the pound pegged at 4.3 dollars. Senior officials in Washington believe that Britain will devalue sterling when it is ready, and that the event cannot be hastened by the United States Government.

“The American Administration wants no part of the moral responsibility attaching to-any suggestion of sterling devaluation. The United States feels also that, with the British elections approaching, it must avoid any action which might be interpreted as political interference, “There is a growing feeling in Washington that any further contribution towards British recovery should be made contingent on a frontal attack by Britain on her ctu-rency and reserve problem. This opinion does hot assume that there is any magic in sterling devaluation.. Few Surprises Expected “There remains the problem of high production costs and what many officials regard as British indifference to the requirements of the American market. . American officials believe that, unless the British can remove the glaring disparity between the official pegged price for sterling and that quoted on the Swiss free market (2.90 dollars), there is little hope of the return to multilateral world trade on which a solid British recovery depends. “American officials hope that the corning discussions ifi Washington may prepare the way for sterling devaluation ih the not distant future. They expect few, if any, surprises to be advanced by the Chancellor of the Exchequer (Sir Stafford Cripps) and the Foreign Secretary (Mr Ernest Beviri). The officials are taking an optimistic view of the scheduled talks. Least of all are they afraid of a British ‘collapse’; their .main concern seems to be that the British will reach their own decisions expeditiously, as

conditions dictate, and in time to inspire continued American confidence. Marshall Aid Allocations The governing council of the Organisation for European Economic CoOperation has agreed on the next allocations of Marshall aid, subject tb United States approval. The allocations, compared with last

1,512,000,000 dollars, but has accepted the new proposed figure.

year’s, are as follows:— This year. Last year. Dollars. Dollars. Britain 902,000,000 1,239,000,000 Branco 704,000,000 981,000,000 Austria 174,000,000 215,000,000 Belgium 312,000,000 248,000,000 Denmark 91,000,000 109.000,000 Western Germany 318,000,000 510,000,000 Greece . 103,000,000 145,000,000 Ireland 47,000,000 78,000,000 Iceland 7,000,000 5,000,000 Italy 407,000,000 555,000,000 Netherlands 309,000,000 470,000,000 Norway 94,000,000 83,000,000 Portugal 33,000,000 —— Sweden 48.000,000 47,000,000 Turkey 61,000,000 40,000,000 Trieste 17,000,000 18,000,000 Britain had originally requested