FURTHER ACCORD

Gisborne Herald, Volume LXVI, Issue 20119, 13 December 1939, Page 5

FURTHER ACCORD

BRITAIN AND FRANCE FINANCIAL AGREEMENT WIDE CO-OPERATION TRADING FACILITATED (British Official Wireless ) Reed. 12 noon RUGBY, Dec. 12. The Chancellor of the Exchequer, Sir John Simon, in the House of Commons, said that as a result of recent conversations with the French Minister of Finance, M. Paul Reyna ud, a comprehensive agreement had been arrived at between the British and French Treasuries which will secure in the field of finance co-operation which corresponds with that already announced at the last meeting of the Supreme War Council in other fields of activity. Summarising some of the main features of the agreement. Sir John Simon said that it was agreed that it was in the common interest to avoid during the war alterations in the existing rate of exchange between the pound and the franc.

“We have further made mutual arrangements which will enable each country to cover its requirements for the currency of the other country and utilise such currency freely as agreed between us without any question between ourselves to find gold,” he added. “Thus sterling held by the French monetary authorities would be available for expenditure throughout the sterling area and France’s held by the United Kingdom monetary authorities were available for expenditure throughout the French Empire.”

Neither Government would impose fresh restrictions on imports from the other country during the war fbr protective purposes or for exchange reason?. The two Governments would share certain items of expenditure incurred in the common cause, such as financial assistance to other countries and the cost of the armed forces of the Polish ally.