Brazil Holding Op Sterling Repayment

Northern Advocate, 7 March 1947, Page 5

Brazil Holding Op Sterling Repayment

(Rec. 1.30 p.m.) LONDON, Mar. 6. It is reliably reported, says Reuter's financial editor, that Britain proposed to pay £1,500,000 a year for the next four years off Brazil’s £60,000,000 star* ling balances, but Brazil counter-pro-posed £3,000.000 a year. Brazil, on hearing of the British proposal, suspended the purchasing commission which was about to come to Britain and also purchases of sterling. This can only mean that Brazil refuses to sell in sterling untii the rare of repayment of the existing sterling balances is clarified, Britain apparently did not press lor a scaling-down of the balances by any creditor outside the sterling area. The Anglo-American loan agreement does not require her to do th's, but requires her to try and obtain it from creditors inside the sterling area. Australia and New Zealand have just written off appreciable proportions and there are indications that Britain proposes a much bigger proportionate scaling down by creditors such as India and Egypt, whose balances accumulated at much higher prices.