TEMPORARY ASSISTANCE

Otago Daily Times, Issue 26532, 6 August 1947, Page 5

TEMPORARY ASSISTANCE

INTERNATIONAL MONET bRY FUND WASHINGTON, Rec, 10.30 p.m. Aug 4. The International Monetary Fund may declare that dollars are a ‘ scarce currency ” under Article 7 of the fund’s articles of agreement, thus enabling Britain and other countries temporarily to use discriminatory import restrictions, says Reuter, which states that it gained the information from an authoritative diplomatic sobrce. Large Loan as Stop-gap It was also considered that such a declaration might relieve Britain temporarily of her convertibility obligations under the financial agreement. Furthermore, Britain would, if desired, be able to apply for a 325,000.000-dol-lar loan from the International Fund as a stop-gap. A State Department spokesman made it clear to-day that no comment on recommendations would be made on the British financial crisis until after Mr Attlee's speech on Wednesday. „ ... Mr Bevin has informed the United States Government that Britain cannot much longer bear her present financial obligations under the German bizonal merger agreement. Mr Bevin had inauired through the American Ambassador whether credit could be obtained from the Export and Import Eank, but was told the* funds were not available from it f- such purpose. , . . The United States Government is being kept completely informed of all the British Government steps in the present crisis, and it is considered certain that the State Deoartment will have the full details of Mr Attlee’s nlah before it is delivered in the House of Commons on Wednesday. Pointed Hint to Congress Although it is believed that the declaration of dollars as a scarce currency would be chiefly beneficial in relieving Britain of her convertibility obligations, which are causing a very heavy tax on her dollar resources, experts consider that, another great advantage arising from it wpuld be virtually to compel a speed-up of the Marshall plan time table bv demonstrating to Congress in particular the critical state of the world monetary situation.