The International Bank May Come to Britain's Aid

Wanganui Chronicle, 6 August 1947, Page 5

The International Bank May Come to Britain's Aid

Way to Ease Responsibility on Conversion Obligations

(N.Z.P.A.—Reuter—Copyright.

Received 6.30 p.m. The International Monetary are “scarce currency’’ under at agreement, thus enabling Britaii ily to use discriminatory import states that it gained the informal matic source. It was also considered 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 dollars loan from the International Fund as a stopgap.

A State Department spokesman made it clear today that no comment, or recommendations, would be made on the British financial crisis until after Mr. Attlee’s speech on Wednesday. The British Foreign Secretary (Mr. Bevin) has informed the United States Government that Britain cannot much longer bear her present financial obligations under the German bi-zonal merger agreement. Mr. Bevin has inquired, through the American Ambassador (Lord Inver-

WASHINGTON, Aug. 4 Fund may declare that dollars rticle 7 of the fund's articles ol' n and other countries temporal’ . restrictions, says Reuter, which tion from an authoritative diplo-

chapel) whether a credit could be obtained from the Export and Import Bank, but was told that funds were not available from it for such a purpose. The United States Government is being kept completely informed of all British Government steps in the present crisis and it is considered certain that the State Department will have full details of Mr. Attlee's plan before it is delivered in the House ot Commons on Wednesday. Although it is believed that the declarations of dollars as "scarce currency" would chiefly be 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 would be virtually to compel a speed-up of the Marshall Plan time-table by demonstrating to Congress, in particular, the critical state of the world monetary situation.