GREAT RECOVERY OF BRITAIN'S DOLLAR POSITION

Grey River Argus, 13 October 1948, Page 5

GREAT RECOVERY OF BRITAIN'S DOLLAR POSITION

Severe Check on Production

(Rec. 10.0) LONDON, Oct. 12 The sterling area holdings of gold and dollars were reduced in the tniro quarter of 1948 by 13b,000,000 sterling leaving £437,000,000 sterling, according to an announcement by the Economic Information unit of tilt Treasury. Before taking into account the amounts received under the European Recovery Programme, the total gold and dollar deficit for the third quarter amounted to £76,000,000 sterling, compared with £147,000,UU0 and £107,000,000 in the first and second quarters respectively. Of £183,000,000 sterling allocated in grants and loans under the European Recovery Programme, for the second and third quarters, reimbursement oi dollar expenditure incurred by Britain was made to the extent of £22,000,000 in the second quarter, ano a further £41,000,000 in the third quarter. The balance of the total third quarter deficit of £76,000,000 sterling, namely £35,000,000 was met by a reduction in the holdings of gold and dollars.

A Treasury spokesman said the announcement was very good news... “It means that the rate of the drain on gold and dollar resources has been reduced less than half of that in the first quarter.”

The spokesman explained that Britain paid in advance for Marshall aid, and had been reimbursebd to the extent of only £63,000,000 sterling oi the £183,000,000 Marshall aid allocated. . ‘“When we receive our reimbursement, we will be in an exceedingly happy position,” he said.