LOOKING TO DOMINIONS FOR CO-OPERATION

Chronicle (Levin), 26 August 1947, Page 5

LOOKING TO DOMINIONS FOR CO-OPERATION

LONDON, August 24. Cabinc-r, mocliiig tomorrow, will asses.s with tlu* Dominions what ndditional supplies lliey an send ..o replace dollar purelmses, .says Reuter \s politicai correspondeiit. Britain is looking to the Doniiiiioiis and Kurope for eloser ecoiioniie coopeiation. British puldic opinion lias been deeply stirred by the iinmcdia'i response from the Dominions durir.g the dollar crisis and their promptnes.in rationing dollar pureha.ses to ease the load on Britain 's eredit. Politicai atiiliations sceptieal or hostile towarus the Ottawa Agreenient during the negotiations now urge preferential benetits to the Dominions as t-he necessary price of assured deliveries. E.xcepting curreney limitation, it i.-, diflicult to see what the Dominions ean do imniediately to help Britain, as niosi of their exportable surpluses are earmarked for Britain. Otlier possibilities will be exainined during the Dominion talks in the ensuing ueeks. Britain niftv get the promise of immediate additional supplies of non-staple products aud, in the distant future, an expansion ( f wheat and meat shipments, which are the principal worry. At present the main sources of essentials lie in the dollar area and must be bought from the limited dollar earnings. The British and American economi.* eonferenee has adjourned its full ses sion "with the expectation that high level diseussions will be resumed at an appropriate time". Sir Wilfred Eady and Mr. Cameron Ccbbold, the Deputy-Governor of the Bank of England, are returning to England over the. week-end to report to their Government. The otlier inembers of the British delegation are remainiiig to eontine the technical diseussions and the two Governineiits will be in continual coiiinniiiication. The (Joverriment of Cevlon has withdrawn all open general ih- ences for purchases from noii-sterling countries. The onier is intemled to save 40,000,000 dollars. Sir Oliver (ionnetilleke. the Cevlon Finaneial Secretary, explaining the decision, said Cevlon wished to help in tiding over Britain 's iinancial crisis and to rectifv her own badlv adverse trade balance. They were restricting the use of dollar excliange in Ihe (-ascot' outstanding orders, while new Jicences for iinports from non-sterling areas would be confined to food and otlier essential items. The Governnient was jireparing a (-oiiiprehensive plan covering import--from all areas, and niore drastic actiou to adjnst Ce vlon \s growing adversi trade balance would be mevitable.