POSSIBLE WELCOME MOVE

Chronicle (Levin), 23 August 1947, Page 5

POSSIBLE WELCOME MOVE

LONDON, August 22. Authoritative London quarters be iieve the British eonvertibility decisioi inarks an important contribution to wards the solution oi the world dolla problem as well as an essential step b\ Britain to end iier own payments crisis The Financial Tinies says the Britisl move is expected to bring down th doilai vaiue of United States export by canalising the deinand for goodi awav from the dollar area and by pro ducing a decline in United States prices. For this reason it is believeu the British move will lie welcomed b\ the M'ashington adininistration whicl. has shown itsclf frankly pu/.zled about measures for deaiing with the worlu duilar shortage. Wnat Move Means. The Governnumt's decision for a tem porary suspension of many of tln arrangements permitting sterling to b exchanged into dollars, is reganled ir sonie quarters as the iirst and mosi dynamic act to mahitahi the value 01 sterling, says Keuter's linancial corres jiondent in London. ' ' What the whole thing means i.c that to all agreements in which Britab has undertaken to allow other coun tries to spend their sterling anywhert in the world she has aaded the restric tion, 'except in the dollar area.' Sht will thus pay dollars only to countrieo in the dollar area and must strive tu restrict imports by berself and by tlm sterling area from such countries to

the baresc essential minimum. To aii the rest of the v/orld Britain will not suppiy dunars, except that essentiai imports of the sterling area rann equally with Britain's own in theu claim on such doiiars as Britain has. ' '