AUSTRALIAN-N.Z. TALKS

Chronicle (Levin), 14 June 1948, Page 5

AUSTRALIAN-N.Z. TALKS

( N.Z.P.A. -

— Reuter,

Main Subject Said To Be Sterling Problem

Copyright)

Received Monday, 11.40 a.m. CANBERRA, June 14. Although discussions between represejitatjyes of the Australjan and New Zealand Governmepts .began on Saturday night and are continuing today, there has been remarkably little speculation by the Australian Press as to the naU ure of the talks.- It i.s rumouyed that one result of the discussions mKay be an offer by Australia to assist New Zealand in the sterl.ing area from Australia's own sterling balances, if the United Kingdom's agreement to the arrangement can be" obtained. Both Australia and New Zealand are understood to be in difficulties as to dollar exchange, and another result of the discussions may be the co^ordination of the purchases of the two Dominions in the dollar area. Canberra correspondents say that New Zealand's sterling problems have reaehed the stage where unless some arrangement of the type suggested is reaehed, New Zealand might be forced to curtail rigidly her purchases from the United Kingdqm and the sterling area generally. The present discussions could provide a valuable preliminary for Australia and New Zealand to meetings in London betwqen the leaders of the two Dominions £tnd the United Kingdom Government. Australia and the United Kingdom raached an agreement a year ago under which Australia virtually froze her sterling toalances. Since then Australia has operated only upon current sterling balances, but in the first ten months of the current financial year. Australia had the favourable balance of trade with the United Kingdorp of £22,492,000 AuStralian currency.