United States Concerned Over British Decision To Reduce Dollar Oil Imports

Otago Daily Times, Issue 27271, 23 December 1949, Page 5

United States Concerned Over British Decision To Reduce Dollar Oil Imports

New Zealand Press Association— Copyright

The State Department said that during the dollar talks between the United States, Britain and Canada in Washington in September, it was estimated that the dollar drain on the United Kingdom and the rest of the sterling area arising from oil transactions for the financial year 1949-50 would run to about 710,000,000 dollars. It was estimated that of that sum about 340,000,000 dollars would arise from United States companies importing oil into the United Kingdom and the rest of the sterling area and receiving payment in dollars. It was also estimated that about 370,000,000 dollars of the drain would arise from world-wide operations of British oil companies whose dollar expenditures include royalty payments to foreign governments, operating costs and the purchase of materials and equipment. Towards an accommodation of the British necessity to save dollars and the United States interest in the continuance of American oil production abroad, ways and means were being considered by the United States companies of reducing the dollar costs of their foreign operations.

Rec. 11.50 p.m. WASHINGTON, Dec. 21. The United States has expressed concern over the British Government's decision to cut her oil purchases from dollar areas The State Department, announcing the United States attitude, said it was hoped that the current consultations m Washington between the two Governments would result in action to minimise the effect of the British decision on American oil companies.