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3.1. (49) 124
ROWN MAY, 1949
CARINET
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CODY MO.
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 0. E. E. C. The United States authorities have Loen 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 de unacceptable to us since it would involve us in risk of los of dollars to other countries. But if we are to resist mericon pressure successfully we must ourselves make constructive proposals for liberaliuine trade and to atimulate economic and competitive production in Europe.
2.
1
fundamental condition for any relaxations of United Kindom controls on importe from Europe is that they should extended within a short time if not at once to the sterling Commonwealth countries. This involves our being able to ecunt on the early supernussien of the non-discrimination under- takings in Section 9 of the Anglo-American Loan Agreement by the
without this more flexible provisions of the Havana Charter;
A similar
we could extend the relaxation only to "war-shattered" countries within Europe and to the Colonies. situation existe with Canada.
3.
Until recently it was thought that proceedings in tho United Stater Congress which would have given us this aspurance would have taken place within a few weeks. But it now apy osrs that any decision by Congress may well be delayed until the auturn or the beginning of next year and with it the prospect of any early release from our Section 9 obligations.
Li.
In order to Bock a way out of this dilomma the 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 propared to de and what constructive suggestions they are propared to malzo, 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 extend them to the whole of the sterling area and that this dopends on being released from our obligations under Section 9 of the Loan Artrooment. AD approach to the Canadian Government about our non-discrimination obligation to them was also authorized. These approsches are now being mado.
5.
An official Working Party has recently reported on the relations in our import licensing restrictions which could reasonably and quitably be mace without involving moterial increases in dollar or sold expenditure or locuos in dollar earnings. The relaxatione recommended would renerally take the Turn of (pen General Licences for imports of specified
These would include Germany goods from specified countrion.
will riverino to
wh Page 150 of 366incipal engineering Gout Page 150,of 36610
special problems of its own, gwcially in
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engineering industry.
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