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will chrage 262 96titude before the Septemérations,
but it is suggested that we should now enquire whether the United States are prepared to take a more sympathetic and co-operative line.
(a) International Bank. Mr. Snyder indicated that the United States were prepared to support a liberal use of the resources of the International Bank, e. g. as regards the grant of loans to India for the purposes of capital development. Our latest information is that the Bank are likely to grant substantial loans of between $100 and $150 millions to India, but there is one special point in connection with the Indian application which it might be worth while for India and ourselves to press at this stage. Certain expenditure on capital develop- ment projects was incurred in 1948/49 and was one of the reasons for India's heavy drawings on the central reserves in that period. India endeavoured to persuade the International Bank to grant loans with retrospective effect; in that event, India would have been able to repay to the central reserves a propor- tion of the amounts drawn from those reserves in 1948/49. International Bank, after careful consideration of this sugges- tion, has indicated that it does not feel able to grant loans to cover expenditure already incurred. This decision may well have to stand, but if it could be amended there would be a direct benefit to the central reserves. It is suggested, therefore, that one further attempt should be made to persuade the International Bank to change its present decision,,
The
(e) Administration of United States tariff. I made strong representations to Mr. Snyder regarding certain features of United States tariff administration which were hampering our export drive. I am supplying detailed information which he promised to have considered. This is a long-standing contro- versy and it would probably be as well to defer any further formal representations on it until the September discussions.
There are a number of other interim measures which might be examined here with a view to their being raised in September. None of them would appear to involve Congress. They are:-
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It
(a) Synthetic Rubber. The present use of synthetic rubber as against natural rubber is, I understand, substantially in excess of the statutory minimum laid down by Congress. would clearly be helpful if in September it were possible without provoking reactions in Congress, to persuade the United States Administration to use their administrative powers to lower the quality of synthetic rubber required to be used by industry in the United States to the minimum provided for by the Act. In this way we should avoid raising the major issue of the current United States domestic legislation, which does not expire until the summer of 1950, and with which it would be unwise for us to appear to be interfering.
(16) Export-Import Bank. It would be useful to explore in September the possibility of loans from this Institution to sterling area countries like New Zealand which are now members of the International Monetary Fund or the International Bank, but which may wish to ease the strain on the central reserves by some form of borrowing from the United States.
(c) The International Monetary Fund and E. R. P. countries, including the United Kingdom. Under a decision of the I. M. F. Board, based on recommendations made by the United States, countries in receipt of E. R. P. assistance were debarred from drawing from the Fund in 1948/49, save in exceptional circum- stancesPagesof66ation ought to be given Petween Fand September to the question whether we should Seek either to have this ruling abrogated or to apply for drawings founded upon exceptional circumstances.
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