BRITAIN ENDS DOLLAR POOL OF STERLING COUNTRIES

Chronicle (Levin), 12 July 1947, Page 5

BRITAIN ENDS DOLLAR POOL OF STERLING COUNTRIES

: — Eeeeived Friday, 8.50 p.m. OTTAWA, July ll. The United Kingdom next week \\vill end'th-e dollar pool of sterling countries and tliereafter make sterling balancCs on current transactions convertible into United States or Canadian dollars. Canadian officials, however, do not expecf any important ehange in Canada's eeonomy because Britain has glready been gradulally taking steps to implement this and other conditions of last year's 3,750,000,000 doljar loan whieh will become effective on July 15. Financial. experts express the opinionfh'at whife' the changes entailed may ificrease- generally the drain on Britacin's ddspefateiy short-*' supply of Uifited States' dollars the inerease will not be so great as: might be expected. The effc'et of making sterling balances on Cutrefit ffansactions convertible into"' dollhrs will* depend on trade betvvbeh the United Kingdom and other countries within the sterling bloc. It m&-y give New Zealand and Australia more; dollars buf as they cooperate closefy WitB the Mother Country BritAin will not be embarrassed by their demands, The only real- rub will be in handling the huge sterling credits which stefling. countries piled up in London during;. tlie' war. The creditors were chieffiy Ihdia, Egypt and other Middle East counfribs which- liave credits tbtalling £l,732,6o6f,000. Britain' s! obligations under the arrangem'ent sUe inakes with those countries wi'Il be' a clife'6'f drain on her supply of dollars including the dollar^ remaining in the United States' loan^