Britain Has Cut Drain On Gold And Dollars

Wanganui Chronicle, 13 October 1948, Page 5

Britain Has Cut Drain On Gold And Dollars

(N.Z.P.A. —Copyright.) LONDON. Oct. 12 (Rec 6 pm).— Sterling area holdings of gold and dollars were reduced in the third quarter of 1948 by £354)00,000, leaving £437,000,000, according to an announcement by the Economic Information Unit of the Treasury. Before taking into account the amounts received under the European recovery programme, the total gold and dollar deficit for the third quarter amounted to £76,000,u00, compared with £147,000,000 and £107,000,000 in the first and second quarters, respectively. Of £183,000,000 allocated in grants and loans under the European recovery programme for the second and third quarters, reimbursement of dollar expenditure incurred bv Britain was made to the extent of £22,000,000 in the second quarter and a further £41,000,000 in the third quarter. The balance of the total third quarter deficit ot £76,000,000, namely £35,000 000, was met by reduction in holdings of gold and dollars. A Treasury spokesman said the announcement was very go.od news “It means that the rate of drain on our gold and dollar resources has been reduced to less than half that in the first quarter The spokesman explained that Britain paid in advance for Marshall Aid and had been reimbursed to the extent of only £63,000,000 of £183,000,000 Marshall Aid allocated “When we receive our reimbursement we will be in an exceedingly happy position,’’ said the spokesman.