TEMPORARY WAY OUT FOR BRITAIN

Chronicle (Levin), 6 August 1947, Page 5

TEMPORARY WAY OUT FOR BRITAIN

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— Reuter.

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Received Tuesday, 7.U p.m. , WASHLNGTON, August 4. The International Mouetarv Fund may deeiare that doilars are ' ' searce currency" under article3! of the fund's articles of agreement, thus enabling Britain and other countries teniporarily to use discriminatory iiuport restrietions, says Reuter Whi'ch states that it gaiued the information from an authori tative diplomatic source. It was also coftsidered that sueh a declaration niight relieve Britain teinporarily ot her convertibility ol)ligations under the financial agreement. Furthermore, Britain Would, if desired, be able to apply for a 325,000,000 doilars loan from the International Fund as a stop gap. 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. Mr. Bevin has informed the Dnited States Government that Britain cannot much longer bear her present financial obligatiOns under the German bizonal merger agreement. Alr. Bevin had in quired through the American ambassador whether credit could be obtained from the Export-Import Bank but was told funds were not available from it for such a purpose. The United States Government is being kept eompletely informed of all British Government steps in Ihe present I crisis and it is considered certain that the State Department will have full de talls of Mr. Attlee's plan before it is delivered in the Commons on Wednesday. Although it is believed that the declaration of doilars as scarce currency would be ehiefiy beneficial in relieving Britain of her convertibility obligations whic.h are causing a very hoavy tax on her dollar resources, experts consider another great advantage arising from n would be virtually to compel a speed up of the Marshall plan timetable by demonstrating to Congress in particular the critical state of the world monetary situation.