LOAN FROM AMERICA

Otago Daily Times, Issue 26638, 8 December 1947, Page 5

LOAN FROM AMERICA

RESUMPTION OF DRAWINGS ENCOURAGEMENT TO BRITISH PEOPLE N.Z.P. A.—Reuter—Copyright. LONDON, Dec. 5. The United States has agreed that the United Kingdom should now resume drawings on the American loan. Letters on this subject between Sir Stafford Cripps, Chancellor of the Exchequer, and the United States Treasury Secretary, Mr J. B. Snyder, were released to-day. Sir Stafford Cripps, in a letter dated December 4, said representatives of the two Treasuries, since cessation of the drawings last August, had made considerable progress towards a programme which would be best calculated to achieve the objectives of the loan agreement and at the same time conserve British dollar resources. Sir Stafford Cripps said it accordingly appeared to him appropriate for Britain to resume drawings against the American loan of credit. The letter reaffirmed Britain’s intention of adhering as closely as.possible to the agreement’s objectives and implementing these objectives fully at the earliest moment. Mr Snyder replied on December 5, agreeing that it was now appropriate for Britain to resume drawings, and said that the resumption would permit the United Kingdom to continue purchases in the United States necessary to maintain, its present austerity programme. He cautioned that while progress had been made toward working out a satisfactory programme on the convertability of sterling, the world’s serious economic condition would delay restoration of full convertibility for some time. Sir Stafford Cripps, in a personal statement, expressed Britain’s deep appreciation of the United States action in agreeing to resumption of drawings. “We have told the United States Government all about our difficulties on the balance of payments. The United States action shows that the Government fully understood these difficulties and acted as a friend who wished to help.* us at this time. It will give fresh encouragement to the British people at a time when they are making solid efforts to achieve their new production target—with heavy sacrifices still to face on the long road ahead.”