South Africa Brings United States To Heel

Chronicle (Levin), 17 September 1949, Page 5

South Africa Brings United States To Heel

Received Fridav 7 pm WARRINGTON, Sept. 15. The Tnternational Mnrietarv Fund's special gold eommittee tonieht nnanimonslv reeommended a stndv hv if* eyecntive board of Sonth Africa 's "tiding over" nronosal on gold together with "all relevant eonsiflerations. " The latter are nnderstood to inclnde a «tudv of the need for an increa«e in fnnds fixed on a gold price of 35 dolh'P's an onnce. The Houfh Afriean proposal which was withdrawn vesterday by Mr. JTavenga was re-introdnced at a speciallv cotm ened qp^-ion o+' the gold eommittee tonieht bv the T'nited States Seeretarv of C'e T-easurv fMr. John Snyderl whose resopition, which was seconded bv M:. Parenga, vas that the original Somh Afriean resolntinn "be referred to the exeeutive dwectors of the fnnd for stndv of all relevant considerations and report to the board of governors. " The development represents a reiaxation in the Ameriean attitnde which until now has been against even a raview of the world gold nrice. Earlier messages stated that South Africa 's decision to reserve liberty of action on future saies of its own mined gold plaees the Tnternational Monetarv Fnnd in a difiicult sitnation. The main qnestions are whether South Africa is going to leave the Fnnd or whether she is going to sell gold to the highest bidder. The Tnternational Monetarv Fund annonneed that a special gold eommittee will reeonvenc tonight to reconsider liow the gold priee qnestion ean be referred to the Ftind 's exeeutive board. Tt is learned that this snrprise aetion was tahen after the TTnitea States offered to refer the South Afriean proposal to the board. The Sonth Afriean Press Association savs the South Africans in Washington regard Mr. Snvder's approach to Mr. TTavenga rosnlting in reconvening the gold eornmitteo as a change of attitnde towards Mr. TTavenga 's proposal. Mr. Snvder saw Mr. TTavenga last ni°"ht and again this morning wlien Mr. TTavenga agreed that the gold* eommittee shonld be reconvened. The corrospondent savs that these two meetings enalded Mr. TTavenga to re-emnhasise that South Africa's membership of the Fnnd would not be maintained at the cost of pre.iudicing its fmaneial and eeonnmic ptrncture. Mr. Snyder nnd Mr. TTavenga then agreed to the form of a resolution which the gold eommittee will consider when it reconvenes. The etfect of tlie amended resolution will be that the Fund's exeeutive directors will be a-ked to investigate, not only Sonth Africa's proposal that lialf the newlymined gold shonld be sold on the open market. bnt also all relevant general qnestions abont gold. 1 Sonth Africa is not represented on ihe Fund's exeeutive, but Australia ie a membor nnd looks after South Africa 's interests. The Anstralian representative will vote jointlv for Australia and Sonth Africa. This shonld present no difficultv as both countries agree about the need for an inerease in the price of gold.