ANNEX 'A'
Page 469.
EXTRACT FROM FINANCIAL AGREEMENT BETWEEN THE GOVERNMENTS OF THE UNITED STATES AND THE UNITED KINGDOM, DATED 6TH DECEMBER.
1945 (Cmd. 6708)
Accumulated Sterling Balances
1) The Government of the United Kingdom intends to make agreements with the countries concerned, varying according to the circumstances of each case, for an early settlement covering the sterling balances accumulated by sterling area and other countries prior to such settlement (together with any future receipts arising out of military expenditure by the Government of the United Kingdom to the extent to which they are treated on the same basis by agreement with the countries concerned). The settlements with the sterling area countries will be on the basis of dividing these accumulated balances into three categories:
(a) balances to be released at once and convertible into
any currency for current transactions;
(b)
(c)
balances to be similarly released by instalments over
a period of years beginning in 1951; and
balances to be adjusted as a contribution to the
settlement of war and post-war indebtedness and in recognition of the benefits which the countries concerned might be expected to gain from such a settlement.
The Government of the United Kingdom will make every endeavour to secure the early completion of these arrangements.
(ii) In consideration of the fact that an important purpose of the present line of credit is to promote the development of multilateral trade and facilitate its early resumption on a non- discriminatory basis, the Government of the United Kingdom agrees that any sterling balances released or otherwise available for current payments will, not later than one year after the effec- tive date of this agreement, unless in special cases a later date is agreed upon after consultation, be freely available for current transactions in any currency area without discrimination.
Page 469
Page 469
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