Monetary Fund Tightens Up Dollar Aid

Chronicle (Levin), 8 November 1949, Page 5

Monetary Fund Tightens Up Dollar Aid

Received Monday 8.0 p.m. WASHINGTON, Nov. 6. The International Monetary ^Fund under pressure from the United States is tightening up its dollar aid to member countries. Diplomatic sourees said the United States proposed that the fund should in future obtain a specific date for repayment from any country applying for dollars. The United States is also emphasising the need for repayment as promptly as possible of funds already withdrawn. The aims w&re: Firstly, to make the fund truly revolving so that currency collections from one nation beeome available for use by another; secondly, to ensure that the fund will have resources in 1952 to step into its intended role as a ready source for currencies needed in foreign trade. This would replace Marshall Aid grants. It is understood that no former action has been takea by the fund, but uone is needed. United States voting strength on the board is c-onsidered sufficient to give her a virtual veto over any proposed dollar outlays. The fund was established three years ago as an international currencies pooi but it has beeome largely an exit channel for dollars. Of the 737,300,000 dollars thusfar withdrawn less than 2,500,000 dollars have been repaid. The fund does not lend currency; it is sold. For example when Britain obtained 300,000,000 dollars in 1947 she paid into the fund an equivalent sum in pounds. When she repays she buys back her pounds with dollars.