BRITAIN AND FRANCE

Manawatu Standard, Volume LX, Issue 226, 22 August 1940, Page 7

BRITAIN AND FRANCE

SOME FORMAL x CONTACT. CURRENCY SITUATION. (United Press Association —By Electric Telegraph.—Copyright.) (British Official Wireless.)

Received .August 22, 11.40 a.m. BOOBY, Aug. 21. Asked in the House of Commons what diplomatic relations or contacts existed between the Government and the Vichy Government, the Under-Secretary for Foreign Affairs (Mr It. A. Butler) said that since the departure of the French Charge <T Affaires, on July 18, some formal communications had ben exchanged with the Vichy Government. These had been conducted through the United States Government, which had assumed charge of British interests in unoccupied as well as occupied France.

Some official exchanges had taken place with the agent who had been charged by his Government with the liquidation of the outstanding economic and commercial questions between France and Britain. He had left for Vichy with the members of the French Embassy in order to consult his Government and had not yet returned. In view of the fact that a considerable amount of bank of England notes were held in France and other territories occupied bv the enemy, it has been decided to prohibit the import of Bank of England notes in the United Kingdom. An Order-in-Council to this effect comes into force immediately. The value of sterling in tlie w'orld markets will not be affected, since commercial and financial transactions are not carried out by means of bank note 6, but bv cheques, cable- transfers, etc. Nevertheless, special steps have been taken, to give existing holders in neutral countries an opportunity, to realise on the Bank of England notes now held by them. . Bank of England notes .held inside the sterling area will continue to be freely negotiable and exchangeable with the currency authorities in the various countries concerned. The prohibition does not apply to notes brought or sent from Eiie into tlie United Kingdom. Travellers from overseas will be allowed to bring in £lO in Bank of England notes, with them.