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in conjunction with
Meanwhile, this preparatory work,
the continuing dollar drain outlined in paragraph I above, has
demonstrated that quite apart from the fundamental question of
the level of trade which can in the long run be sustained between
the dollar and the sterling areas, the ineligibility for
E.R.. finance of certain major United Kingdom purchases from
Canada presents a major obstacle to the maintenance of current
United Kingdom/Canadian trade at a reasonable level, and is of
crucial importance to the whole complex of United Kingdom/
Canada trade relations.
4.
Last March, on the urgent advice of the Economic Co-opera
tion Administration (E.C..), the United Kingdom withdrew its
roquest for the further use of E.R.P. funds for Canadian wheat.
Had this step not been taken we were advised that the United
States Secretary for Agriculture would have formally declared
wheat a surplus commodity ineligible for off-shore purchases
under E.R.. It was then hoped that it would be possible for
the United Kingdom to re-arrange its purchasing programme so
that E.R.P. dollars could be expended on other essential
commodities, while wheat could be bought from the free dollars
thus released.
5.
Since April E.C.A. have also refused to finance the
United Kingdom/Canadian cheese contract and as from October
there is a strong probability that Canadian bacon will be
inoligible. In addition E.C.A. have felt unable to finance existing contracts for pulp, paper and timber, unless they have
been thrown open to competition with U.S.A. producers.
the last quarter of this year there may also be difficulty in financing off-shore purchases of non-ferrous metals.
6.
During
In all, this means that some $500 millions may be
ineligible for E.C.A. financing, of which Canadian purchases
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