PROBLEM OF BRITISH BALANCES OWED TO INDIA AND EGYPT

Wanganui Chronicle, 5 June 1950, Page 5

PROBLEM OF BRITISH BALANCES OWED TO INDIA AND EGYPT

Top Items For Discussion By The International Chamber of Commerce

NEW YORK. June 3 (Rec. 7. lem of 9,000,000,000 dollars in th. ain, chiefly to India and Egypt, the International Chamber of ( 'l Wednesday, said the financial wi lie added that it had been indicated here that the Chamber' would also urge action aimed at near-term convertibility of currencies. The organisation put both these questions at the top of the list as vital to healthy world trade and international stability. It was recalled that a committee of the United States Council of the World Chamber suggested in a report last December that consideration should be given to a plan whereby the United States would undertake to fund 15 per cent, of the sterling balances annually. In connection with convertibility, the means of making effective the operation of European payments plan, scheduled to begin functioning on July 1, was expected to receive major attention. A New York “Times” report from Toronto said executives in high American and British industrial circles favour the development of some plan that would expand two-way trade of the United States with sterling area

’.20 pm).—An attack on the prob- i le sterling balances owed by Britwould be made at a meeting of ’ommeree, beginning in Paris on liter of the New York 4 ‘Times.” , countries, and might drastically rej duce future needs of Britain for more dollar loans. A plan of that kind was advanced recently by Mr. D. J Walsh, of a New York firm of consulting engineers. The Walsh plan proposed that the United States should use principles developed by the reconstruction Finance Corporation during the recession of the ’thirties to help ailing American companies as a basis for broadened international trade. The Walsh plan proposed that. American manufacturers should accept sterling in payment for goods sold to companies in the sterling area—under Government guarantees of convertibility. Sterling accepted under such contracts would be held for long-term periods by the United States under the long-term funding plan. During a canvass recently of more than 30 industrial leaders attending the Canadian International Exposition, it was learned that some kind of such plan would be welcomed, but action would be required at high policy levels before organisations of industrialists would openly sponsor a , move in Canada or Britain.