CABINET OPPOSITION

Gisborne Herald, Volume LXXIV, Issue 22340, 27 May 1947, Page 5

CABINET OPPOSITION

FURTHER LOAN FROM U.S. CURRENCY PROBLEMS (2 p.m.) LONDON, May 25. Despite persistent reports to the contrary, it can be said that Ministers are now more firmly against seeking another American loan than at any time in the past year, nor does the steep rise in prices since the agreement was signed seem sufficient warrant for the Government to ask for a revision of the terms of the first loan, which experts have advised will probably be exhausted by July, 19-18, says the Observer’s political correspondent The correspondent says Cabinet, after the Whitsun holidays, faces one of the most difficult decisions since it took office —whether or not to accept a Treasury report on the dollar position. This report is now almost finished, and will almost certainly recommend that Britain, during the next 12 months, must drastically reduce her imports from the hard currency areas. The Treasury holds that substantia] dollar saving is necessary, and the only way is to reduce the meat or cereal imports, perhaps both.