BRITAIN UNEASY

Auckland Star, Volume LXXIII, Issue 126, 30 May 1942, Page 7

BRITAIN UNEASY

EXCHANGE POSITION

Need Of Shipping To Aid Trade

United Press Association.—Copyright. Rec. 2 p.m. LONDON*, May 29

Britain's foreign exchange position is causing a certain amount of uneas'ness. Despite the Lease-Lend policy and the willingness of the Dominions and certain foreign countries to accumulate sterling balances in London, the foreign exchange requirements remain substantial. Citv interests express the hope that Washington will take a liberal view of the pooling of financial resources. One London quarter suggests that the only solution is a diversion of shipping space, labour and material from war production to cover urgent foreign exchange demands.

The increased wool clip prices are estimated to cost the Government from £12.000,000 to £15,000.000 a year, with an additional gain to the Dominions of from 50 per cent as a share in the possible profits on higher dollar receipts from exports to the United States.

L ncertainties in Russia and Libya have slowed down an earlier moderate demand from the Australian and New Zealand stocks market. The feeling is that the lack of opportunity for trustee investment elsewhere will evoke sufficient support to unfreeze the market in the absence of serious military reverses.