Restriction Hits United States. Hard

Northern Advocate, 23 August 1947, Page 5

Restriction Hits United States. Hard

(Received 1.10 p.m.) WASHINGTON, August 22. THE Anglo-American economic conference adjourned its full session tonight “with the expectation that high-level discussions will be resumed at the appropriate time.” Sir Wilfrid Eady and Mr Cameron Cobbold, deputy-governor of the Bank of England, are returning to England over the week-end to report to their Government. Other members of the British delegation are remaining to continue technical discussions, and the two Governments will be in continued communication.

Some authoritative quarters in Washington think the British action may cause the most widespread upset in world trade since the 1931 slump. Most observers predict a full in United States exports.

For this reason it is believed that the British move.will be welcomed by the Washington Administration, which has shown itself frankly puzzled about measures for dealing with the world dollar shortage. The Swiss newspaper Neue Zuercher Zeitung says the decision is the most serious event for Britain since the defeat of France in 1940.

Announcing that all Argentine imports would be halted temporarily, the Central Bank of Argentina said the allotment of foreign exchange for imports would be suspended for the present “in order to study the repercussions which the suspension of convertibility may have on the development of our international trade.” The bank gave no indication of how long the embargo would be effective. Argentine exports to Britain are much larger than to the United States and part of file sterling received from Britain has been converted info dollars to cover Argentina’s unfavourable trade balance with the United States. Reuters financial correspondent says Argentina's action immediately hits America far more than Britain, since America is sending to Latin America each week about as much as Britain has been sending each quarter. The Financial Times says the British move is expected to bring down the dollar value of United States exports by canalising the demand for goods away from the dollar area and by producing a decline in United States prices.

The ■ Russian-licensed newspaper Berliner Zeitung said Britain has had a rough fall from a position of world importance. Bankruptcy is outside her door.

The semi-official French newspaper Le Monde said France, which has a commercial balance ’of £50,000,000, would have wished to convert part of this to dollars. Britain will have to make a considerable effort if sterling is not to be devalued. The Canadian Minister of Finance (Mr Douglas Abbott) announced today that the British action made no change in the financial arrangements between Britain and Canada. • Under tnese arrangements British purchases from Canada are financed partly by drawings on the £1,250,000,000 dollar Canadian loan and partly by payment of United States dollars or gold. The New York Sun financial editor says the new development may be the first step in the re-establishment of lend-lease to Britain, which is apparently about to negotiate for a huge loan from the International Bank..