DOLLAR-STERLING CRISIS

Chronicle (Levin), 11 July 1949, Page 5

DOLLAR-STERLING CRISIS

( N.Z.P.A. ■

—Reuirr

General Exchange Of Views At Tripartite Meeting

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Received Monday, 9.35 a.m. LONDON, July 10. A British. Treasury communique issued this afternoon on the Bri-tish-American-Canadian flnancial talks said that there had been no suggestion that sterling should be devalued. The communique stated that there had been a general exchange of views on s hort and long term measures to right the existing disequilibrium between the dollar and sterling areas. The communique said: "During their visit to London the United States Secretary of the Treasury, Mr. John Snyder, and the Canadian Finance Minister, Mr. Douglas Abbott, had a general exchange of views with the Chancellor of the Exchequer, Sir Stafford Cripps, and the President of the Board o*f Trade, Mr. Harold Wilson, on the balance of payments' difficulties between the dollar and sterling areas, and on measures which could be taken to right the existing dis-tish-American-Canadfian financial both in a long and short term. Basis of Solution. "It was reaffirmed that the objectives of the economic policy of all three Governments remained those which are set out in the articles of agreement of the International Monetary Fund and Havana Charter of the International Trade Organisation. "Particular stress was laid on the necessity of finding solutions which would maintain high levels of employment and enable world trade and international payments to develop on a multilateral basis. It was agreed that the general approach to the existing problems must be based upon full recognition of their profound and long term character." Sir Stafford Cripps will put before the Commonwealth Finance Ministers' conference the British proposals to meet the immediate dollar crisis which were discussed at the talks just ended. He wll ah? > indicate the reactions and suggestions of Mr. Snyder and Mr. Abbott. British Proposals. Observers believe that the British proposals for meeting- the short term situation included, firstly, measures to enable her to earn more dollars by facilitating American imports of British goods; -secondly, increased American purchases of materials from the sterling area, including, for instance,. materials for the United States st.ockpile, and, thirdly, a means of facilitating private American investments in sterling.