Another American Loan Not Favoured by Ministers

Otago Daily Times, Issue 26470, 26 May 1947, Page 5

Another American Loan Not Favoured by Ministers

Rec. 10.30 p.m

LONDON, May 25.

In spite of persistent contrary reports, it can be said that Ministers are now more firmly against seeking another American loan than at any time in the past year, nor does the steep rise, in prices since the agreement was signed seem sufficient warrant for the Government to ask for a revision of the terms of the first loan, which experts have advised, will probably be exhausted by July, 1948, says the Observer's political correspondent. The correspondent says that Cabinet, after the Whitsun holidays, faces one of the most difficult decisions since it took office —whether or not to accept the Treasury report on the dollar position. This report is now almost finished and will almost certainly recommend that Britain duiing the next 12 months should drastically reduce imports from hard currency areas. The Treasury holds that a substantial dollar saving is necessary and the only way is to reduce meat, or cereal imports, perhaps both.