DOLLAR SPENDING

Otago Daily Times, Issue 27504, 26 September 1950, Page 5

DOLLAR SPENDING

Caution Still The Keynote COMMONWEALTH COMMERCIAL TALKS NZPA Special Correspondent LONDON* Sept. 24. The Commonwealth commercial talks, so far as the? have, proceeded have dealt with two main topics the sterling area dollar reserves and future dollars requirements and the steps necessary to counteract inflation arising from rearmament. Dollar reserves have shown considerable improvement since the Commonwealth Ministers last discussed them in concert in London, ana inevitably there is some demand for some relaxation of the restrictions upon dollar expenditure which were then voluntarily accepted. The position is, however, still so uncertain and difficult that caution is still very much the keynote. Tountries such as Australia and New Zealand which have large developmental expenditure ahead are naturally anxious that they may be permitted to spend more dollars than they are able to do at present, but it is also realised that any increased dollar spending must be in agreement with the general policy of the sterling area as a whole.

Aid to Asia

The Commonwealth talks will turn this week to South-east Asia and the implementation of plans made at the Colombo Conference. A full week is likely to be required for this and possibly another week for consultations w.ith the South-east Asian countries concerned. The two New Zealand Ministers engaged in the discussions, Mr K. J. Holyoake and Mr F. W. Doidge, are both impressed by the harmonious nature of the negotiations and by the determination of participating countries to reconcile their views. Mr Holyoake has so far concentrated upon the wool talks, which are the major purpose of his visit, but he has also attended one session of the general Commonwealth talks in which Mr Doidge is representing New Zealand. The talks were, discontinued over the week-end, during which Mr Holyoake was the guest of Mr Anthony Eden at his country home near Chichester, and Mr Doidge was the guest of Lord Beaverbrook at Cherkley Court, near Leatherhead.