PRINCIPLE OF CONVERTIBILITY

Chronicle (Levin), 21 August 1947, Page 5

PRINCIPLE OF CONVERTIBILITY

Received Wednesdav, 8.10 p.m. LONDON, August -20. Tt is understood that tlie Britisii delegation in Washington has received instructions to do its ntrnost to seeure an arrangeinent enabling the Goverii nient to niaintain tlie jirinciple of con- \ ertll.ility of steriing, says tlie Financial Times. Sucli an arrangeinent would enable the British Treasury to reserve Ihe unspent balance of the dollar loan for linancing British reqiiirenients. Should the Knited States',

negotiators agree to the propose j formulaj it would enable the Govern ment to niaintain convertibility even after the proeeeds of the dollar loan have been exhausted, without having t;, draw on its own gold reserves for that [purpose. I The paper adds that Mr. Dalton is believed to have succeeded in eonvincing Cabinet that the maintenance of convertibility is a mattex- of lirst raf.t importance froni the viewpoint of thr Government 's prestige and that nc .■aerifice must be spared in the interest:of avoiding suspension. The Daily Herald's politica.1 eorres pondent says fresh instructions for thr British delegations in Washington wit. probably be carried by Lord Inverchapei, British ambassador, who i.flving back from Ieave in England a nionth befoie schedule.