Page 132
Page 132
Page 132
Criendwas 38/5 (12noon)
THIS DOCUMENT IS THE PROPERTY OF HIS BRITANNIC MAJESTY
Page-133 of 366–
GOVERA Page 133 of 366
$6
SECRET
3. I. (49) 124
267H MAY, 1949
CABINET
31
CODY NO.
IMPORT LICENSING RESTRICTIONS
Memorandum by the Chancellor of the Exchequer
The Intra-European Fayments Scheme will come under review at the forthcoming meeting of the Ministerial Consulta-- tive Group of the O. E. E. C. The United States authorities have been pressing strongly the suggestion that drawing rights under the scheme should be made transferable or convertible in order to make progress towards the liberalisation of European trade which is one of the main objectives of Marshall Aid. This is unacceptable to us since it would involve us in risk of loss of dollars to cther countries. But if we are to resist American pressure successfully we must ourselves make constructive proposals for liberalising trade and to stimulate economic and competitive production in Europe.
2.
fundamental condition for any relaxations of United Kingdom controls on imports from Europe is that they should Yo extended within a short time if not at once to the sterling Commonwealth countries. This involves our being able to ecunt on the early supercossion of the non-discrimination under- takings in Section 9 of the Anglo-American Loan Agreement by the more flexible provisions of the Havana Charter; without this we could extend the relaxation only to "war-shattered" countries within Europe and to the Colonios. A similar situation existe with Canada.
3.
Until recently it was thought that proceedings in the United States Congress which would have given us this accurance would have taken place within a few weeks. But it now apposrs that any decision by Congress may well be delayed until the autumn or the beginning of next year and with it the prospect of any early release from our Section 9 obligations.
Li.
In order to sock a way out of this dilemma tho Economic Policy Committee on 26th May (E. P. C. (49) 19th Meeting, Minute 2) authorised an approach to the United States Govern- ment with a view to finding out what they are proparod to do and what constructive suggestions they are prepared to mako, explaining that we are ready and anxious to take the initiative in relaxing immort controls but that we can only do so it wo are free to cztenů them to the whole of the sterling area and that this depends on being released from our obligations under Section 9 of the Loan Agreement. An approach to the Canadian Government about our non-discrimination obligations to them was also authorized. These approaches are now being made.
ら。
An official Working Farty has recently reported on the relaxations in our import licensing restrictions which could reasonably and equitably be made without involving material increases in dollar or gold expenditure or locuos in dollar earnings. The relaxations recommended would generally take the form of Open General Licences for imports of specifică goode from specified countries. These would include Germany Whi Plageak33 of 366ncipal engineering countrPage33 of 366ise to special problems of its own, especially in relation to the
-1-