CANADA’S PROBLEMS

Otago Daily Times, Issue 26616, 12 November 1947, Page 5

CANADA’S PROBLEMS

USE OF AMERICAN DOLLARS NEW HOPE IN RECOVERY PROGRAMME Rec. 11 p.m. NEW YORK. Nov. 10. According to the New York Times correspondent in Ottawa, hopes for a solution of Canada’s dollar problems have been considerably increased by the Secretary of State’s announcement that the European recovery programme funds combined with normal Export and Import Bank transactions will be used to buy in other American countries commodities not readily available in the United States. The Minister of Reconstruction, Mr C. D. Howe, said to-day: “The programme is really a world programme, and Canada will benefit immensely in two ways—directly by being able to contribute supplies, and indirectly because whatever helps Europe to recover will help Canada.” The correspondent says a contributory factor to Canada’s dollar shortage is that she has been paying United States dollars for a large part of the manufactured articles which she sold to European countries on credit. It is hoped now that this leakage at least will be stopped or compensated, for because instead of supplying such goods direct to Europe they will ba included in the European restoration programme. It is also expected that it will become possible to remove the ban on the export of meat and other supplies to the United States to help counteract tendencies towards inflationary price movements, which, Mr Marshall said, might result from concentrated buying in the United States alone.