¿ THE CHINA, MAIL, THURSDAY, JULY 7, 1049.

SECRET PLAN TO AID TRIPARTITE TALKS

EUROPEAN RECOVERY

Presented To U.S. By

Government

OF GOLD

French REVALUATION

Paris, July 5.

France's secret plan to aid European recovery, tendered by the Finance Minister, M. Maurice Petsche, to the United States Secretary of the Treasury, Mr. John Snyder, is believed to propose a re-valuation of the price of gold from $35 to $55 an

ounce.

From sources close to the French Finance Minister it is learned that the plan

also demands a lowering of United States Customs tariffs.

7

The French Government believes that the proposed rise in the price of gold would at once improve the balance of trade of the Sterling bloc by about $300,000,000 a year and thus be a substantial contribution towards salving Britain's dollar crisis.

HINT ON CURRENCY REVALUING

niso argued that raising It is The godel price would counteract the trend towards trade depres- sion by increasing metus of pay- ment throughout the work.

Most of these drawings occur red before the start of the Mary

shall Plan,

Loans To UK From America

London, July 5.

Britain has borrowed $4.- 083,000,000 from the United Btates since the victory over 1940, Japan on

August 16, Bir Stafford Cripps, Chan cellor of the Exchequer, sald In a Parliamentary reply to..

day.

it is hoped that there will be no Increase this year," he added when he was asked by how much he expects this sum to be increased in the present financial year.-Reu

ter.

Text Of Agreement On Payments

Schism Between Monetary Areas

London, July 5.

The talks between the British, American and Can- adion Finance Ministers on Saturday, may be even more important than the subsequant'mact- ing of the Commonwealth Finance Ministars, which is due to take place on July 13. Canada and France are the two countries most pre- cariously balanced between the sterling and the United States dollar areas,

WOR

M.

The French. American and British economic Trianglo probably discursed when the

Foreign French

Minister. Robert Schuman. met the For- eign Secretary. Mr. Ernest Bevin, and Britain's Chancellor of the Exchequer, Sir Stafford Cripps, during a flying visit to London yesterday.

اول

TREASURY HAS NO COMMENT

France is precariously poised

New York, July 5. between the American and Bel- A Treasury spokesman de- Paris, July 5.

gion deflationary multi-later-clined to comment today on The texts of two agreements alism and the Inflationary bi-Wall Street Journal story that for liberalising trade within lateralism of the sterling arco Britain is preparing to set up Europe and (for an intra-Euro-If thiệ

penn

ilon.

schism continues or new trade barriers to protect

the

to

sald.

nt

for widens, Franco payments system

may have

the Pound. 1949-50 were published here choose one side or the other, today.

France has lately gravitated to

"You may say we are even more The agreements were reached wards deconirol, last Friday niter urgent talks become to ranis with Belgium, Italy, mute than usual, the spokesinas tween Sir Stafford Cripps, British, and the

Bizone of con

Germany. Chancellor of the Exchequer, and whose unncontrolled, economies "We are answering no inquirler { representatives of the Organisation have been gaining gold and on policy until after Sir Stafford

whlic for European Econanie Co-Opera- | dollars,

controlled Cripps makes his statement to the tomorrow Commons economics of Britain, Norway and House The texts were issued by the Sweden have been losing their (Wednesday)," O.E.E.C.

reservca. Point nue of the agreement on liberalising intra-European trade provides that participating coun- tries shall forthwith lake steps ta eliminate progressively quantita tive import restrictions so as to achieve us complete a liberalisa- on of intra-European trade as possible by 1951.

M. Petsche tabled fus plan at two-hour conference with Mr. Snyder this

Later,

towards the Belgian system morning, American and French Govern- ment experts discussed it in de- tall,

Much Progress

The National Advisory Council, which serves as the consultative body of Bancial experis of the that Marshall Plan, had found many of the participating coun- tries and made substantial pro resS In expanding production facilitating trade and in attaining internal ficial stability.

The French Finance Minister is believed to have insisted that the costs can- problem of European Washington. July 5. not be solved by European action President Trumman sent Con- alone. It is necessary, he said, goods into the Kriss a report Juday from his to let Europea top advisers on foreign finan-American tarifs which, in some

tux European cial policy which suggests that cases.

turers up to or to 40 per cent at the

30 some nonamerl European coun-

of their value, he said. tries should revalus their cur rencies

manufac

The National Advisory Coun el reported that the International tank for lleconstruction and Dr. well had progressed velopment

development phure of its tending programme. It might The French have niso suggest he expectes to assure an in ed the setting up of an exchange creasing share of the noncial The po pogil also said the allen- stabilisation fund for European Burden of

world-wide develop ald í currencies

which Honol European recovery

muxternisation should not be made for the speci- would

to incre foreign reserves of gold and dollars.

necessarily

think ment they have to

bt

the

grammes. Loun fie puitus of building up fur-constituted by the United States.

comitments since eign lange reserves, that is, They suggest that this should Bank made its Orsi loan in May, be done with the mass of gold | 1947, Iotalled more than $650,- now lying sterile in the United dun,000.--Reuter. States gold repository at Fort Knox, Kentucky.

These Vic points were pre- sented by the President for relay to Congress by the National Ad- visory Counet), enant used

Secretaries of the Treasury, Sta!!! and Commerce, the Chairman of the Federal Reserve Board, of the Export Import Bank und the

London Informed

Reports that M. Petsche's latest plan was also taken to London by the Foreign Minister, M. Ro-

Schuman, yesterday

hert

confirmed from

21213

were

EÇA Administrator.

The Council commented on current in Paris but could not be European cronumies; "In some cases the revaluation of curren-source cies may constitute an important means of bringing about a de- sired expansion of exports to the dollar area which, along with

contribute to more aormal me thods of financing after (When ECA (nds).

satci

to the U.S.

countries

after 1952.

1952."

that these

Poles Nab British Woman

Puint, two Invites members to bolish such restrictions unilater- ally as fully as their economic and Bnancial positions allow.

CRIPPS REJECTS

A SUGGESTION

London, July 5.

The Chancellor of the Exche- Holland, having also gravitated

in quer is expected to give the Com- the Benelux Union, has also apmons the latest figures on Britain's gold and dollar reserves and to recommend steps to be taken to halt a flight of dollars from Bri- tain-Associated Press,

ceased to love

reserves in recent weeks. parently

Drain On UK

her

France depends, however, on large grants of sterling from Britain. These are a drain on Qritain's resources

a time st when Britain's reserves are far more precarious than those of France.

U.S. Naval Visit To Korea Port

Seoul July 5. Three American warships. will. arrive in Korea this month for a brief visit of friendship to the Republic of Korea, the American Embusty announced today.

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Point three provides that parti- ripating countries shall report to

M. Schumon and the other the O.E.E.C. not later than Outo-

French Ministers must be con- ber 1, 1949, on the measures they French

cerned with the underlying have adopted unilaterally and of those they intend to adopt subse-schism. It is known that, France

is anxio

unxious

to advance towards pro-quently--Reuter,

multi-lateraism as fast as Sir Stafford Cripps can agree,

Canada's position in relation to Britain's dollar crisis will pro- bably come under the miscroscope on Saturday.

On board the cruiser USS Man- Britain could immediately re-chester will be Rear Admiral T.H. Sir Stafford Cripps, Chancel.lieve her dollar plight by de- Binsord, cominonder of the cruiser foulting on her Canadian bulk division of the U.S. Navy. Accom- tor of the Exchequer, today re-contracts for wheat, cheese, bacon panying the Manchester

Rowan then get the jected

destroyers suggestion in the and timber. She could House of Commons that Cana- these goods from Amerten with Henderson.

The vessels are expected to ar dian orders for British goods be Marshall Plan dollars instead of

Canada with her own rive at Inchon around July 1. AS guaranteed against a devolua- from

guests of the Kepublic of Korea tion of sterling by the Export.dollars.

the officers and men of the naval Guarantee Department.

vessels will be conducted on tours This would merely transfer a

of the Inchon-Seoul area. dollar large

part of Britain's

The ships are expected to be in crisis to Canada, however, and Fusan on July 12 and will return Britain is

as to their permanent Aslatic station morally contractually, -bound to her on July 13.-United Press.

Lwo

Conserva-

Sums At Stake

Canadian contracts.

as well

No less than $400 million is at with them, compared stake in the $40 million at stake in last

week's Paris conference.

sheer Britain might encounter

these con- inability to pay for truets unless Canada enlarges her month to Britain. Either course

for would be serious

to get along without ECA RIU risduction in the gold and collar mund for the release of Mrs. Firth) adrious and I am not prepared loj present credits of $10 million a

UNEMPLOYMENT

IN GERMANY

Warsaw, July 5.

Mr. Cyril Osborne, But it is understood that the The Polish authorities have tive, said that Canadian orders French are keeping in constant refused to allow the British are being withheld to the detri close touch with the British Gov- Cofisul here to visi: Mrs. Halin ment of Britain's export trade be

fear of sicrling other appropriate frusures, willest over inancial questions Firth, British subject employed cause of the

urising out of Mr. Suyder's visit.

Ho suggested that these orders M. Petsche said after today's at the British Embassy in War- devaluation. neeling that his talks with Mr. saw who was arrested by the

be guaranteed against devaluation Police nearly

at a normal rate to facilitate trade That appears to suggest therow or

Snyder will be resumed tomor- security

months ago. Council belleves that the mark-

or Thursday.

Sir Donald Gainer, the British and demonstrate that devaluation

fears are groundless. Mr. Suyder reported to Presi- down of some European cur.

The Chancellor of the Exche-

Frankfurt, July 5. rencies would so promote their dent Truman and Congress today Ambassador, formally, protested

that continued American assis-aghirst, Mrs. Firth's arrest yester- quer replied: "I do not think the

Unemployment in the Anglo- amount of such abstention is tance to Marshall Aid countries day. could be better able should not depend on a further

The Ambassador's previous de-

American Zone of Germany has last 12 adopt the suggestion."--Router.

Canaria, almost trebled in the

German Bizonal was rejected three weeks ago.

since the cash dollar payments months, the The Council's comments did reserves of those countries,

Mrs. Firth, who is accused of

Labour Administration said today. from Britain for these contracts not mention

subversive activities and harbour-

There were 1,237,700 jobless in play an important part in squar-Bizonla on June 30, compared with but they are

the pertinent to

Ing a person wanted by the State, and

the situation in

442,000 a year ago, which Britain

is Polish-born. She is 48 hus

But, he added. Marshall

The Government today completing Canada's accounts with Aid married a British businessman 20 increasing been caught with

ed its case against Alger Hiss in United States-Router. stringenes in recent weeks-As-allocation, should not be made for years ago.

Mr. Firth loft Poland on the the Federal Court. the specific purpose of building sociated Press,

up foreign exchange reserves. outbreaks of the last war and is The court adjourned with only Mr. Snyder, who is at present new in England with their two, one witness remaining to be heard. final defence witness will in Paris, is expected to visit LOR- Sons. Mrs. Firth, who spent the The dion for talks with Sir Stafford war years in Fuland, was pre- take the stand tomorrow and the Cripps, British Chancellor of the paring to join her family is Eng-jury will begin to decide Hiss

on lund at the time of her arrest, fato Thursday afternoon Exchequer.

Reuter.

f

Britain by Me

MILK ON RATION AGAIN IN UK

London, July 5. Milk will be rationed again in

Big Losses

Outlining the activities of the National Advisory Council, of which he is Chairman, on inter- national monetary and Ananclat

Britain after, 15 weeks of free problems, Mr. Snyder sald that sales. Rationing is being re-im- posed because of a seasubal drop Marshall Ald countries in part-

in the milk production, caused by cular had suffered losses in their the current hut spell, the Food

monetary

reserveg during the

Minister, Mr. John Strachey, an early post-war years in efforts to meet overalt deleit in thele ounced tonight,

balance of

payments. He pointed out that Marshall

countries Ald

drew over $2,- 500,000,000 worth of gold and dollar, sesota during the thres and-a-half-year ported from July, 1045, to December, 1940.

The restrictions will begin again on Sunday, when the nor- Adult quota will be three mal pints per week, Last year, matlon- ing was lifted for only three weeks during the

Reuter.

summer.

San Francisco

To London

HISS TRIAL

United Press.

New York, July 5.

London To Hong Kong

London, July 5.

The trend of rising unemploy- ment, however, has considerably slowed down in recent weeks, the The King today received Sir labour officials said. The influx Robert Howe, Governor-General of German refugees and returning of the Sudan, and invested him prisoners of war greatly contrl- with the insignia of the Knight buted to the increase in the num Grand Cross of the British Em-ber of unemployed, they declared. pire-Reuter.

by B.O.A.C.

Hong Kong To

San Francisco

Rcuter.

1

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