1947-08-19 — Page 3

THE CHINA MAIL, TUESDAY, AUGUST 19, 1947.-

U.S. Loan Running Out Fast NO QUESTION OF

Only Two Alternatives Are Practical

Decision Deadline Matter Of Days

London, Aug. 18.

While there was no official indication in London as to the nature of the further instructions to the Washington mission from yesterday's emergency meeting of the. British Cablnet, it understood that there were was responsibly

only two alternatives. The immediate nature of the dollar crisis is that Britain lacks the resources to maintain conyer- tibility at the present sterling-dollar exchange rate,

7.

bren

j.cicutions from Washing- | trade. Convertibility has ton are that only Congress could he bridge between the two provide the additional resources hemispheres. Lo enable convertibilliy to be maletained and there is no in. tention of calling a special session of Congress in time.!

Unless, as seems impossible by he United States constitution, the bridge can be strengthened the choice to lie between bar- ricading or breaking it. Significant Trip

General Election Improbable

London, Aug. 17... Possibility of a general election in Britain after Mr. Winston Churchill's attack on the Labour Government in his broadcast last night was being discussed today.

NEW LOAN

New York, Aug, 17 "There is no question of a new American loan to Britain," Sir Wilfrid Eady, leader of the Bri- tish delegation which is to discuss revision of the present American loan agreement with Britain with United States officials, stated when he arrived at La Guardia Airport here today.

Arked whether If, conditions were propitious the question of a new lean would be discussed at the conference due to open in Washington tomorrow, Sir Wilfrid "As far as we are Eady sold:

that la not on the concerned, agenda."

the purpose of

He said that

the discussiona was to talk about foam and "Itu - more the 1945

rapid exhaustion that we or the anticipated at the time we nego. tinted it."

United States Government had

He added

that the Marshall

Price

Fixing Probe

Washington, Aug. 17.

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Political quarters in London regarded the matter with some reserve, however, Mr. Churchill, it was thought, in referring to a consultation of the people might just as well be reviving his proposal for a referendum on specific issues which he put forward as Prime Minister short-plan for European recovery was Commission has started ly before the Labour Government was return-ong the questions scheduled action accusing the Am- by the delegation erican steel industry of ed in 1945. Indications against an early gical Parliamentary sents. lection appeared as strong today

is before the crisis.

Remote

C

rebe

any

As the discontented wing of the

The choice thus narrows down

Although a critical wing has to the maintaining of converti

2. Appearance of merged within the ranks of the bility at a lower or unpegged ex- The hurried departure for Labour Party, there is no sign as lender willing to accept the risk chunge rate or clse, maintaining | Washington of the deputy gover. yet that the Government's clear to his career involved in challengi the exchange rate and restricting one of the Bank of England was majority of more than 100 in the ing the present Labour leadership convertibility.

3. Presentation of a pasitve further indication that the onse of Commons is likely to be 0 There have been reports from crisis is coming to a head and threatened if the fate of the Gov-alternative policy from the Con-

servative side with involved.

which rnment were Washington that the United States} that the hour of decision may; Three things would be netded to rebel group of the Labour Party Government would have uc- not be for off. Mr. Cameron quiesced in the latter even before | Cobbold is widely

Take a general election probable; eruid make terms. regarded in

1. Emergence of a strong re- July 15 if Britain had asked. the city as the "brains" of the

el group within the Labour Party Labour Party Hes on the left 11 convertibility is to be res- Bunk of England and thal bank

repared to carry the issue to the rather than on the right, the thirl tricted and if, as British Minisie in charge of the convertibility oint of losing at least 60 mm-din-p appears remote.Reater. ters have stated, Britain refuses of sterling and the sterling ex- to throw away her gold stock, change. convertibility must be suspended Mr. Cobbold's departure for before the last of the loans used, because some dollars must be kept in hand to honour the sterling olrendy 31 hands.

Washington might

have very enceint sietilenner.

The whole pyramid at inter. American national trade han been resting

en the point struction from Tand to the Bank of New

In Few Days? With the loan running out fast, the deadline for this decision might be only a few days

This would mean that sterling remains convertible throughout the castern hemisphere but not in the dollar area. It would mean a prent change in the present world trading system and pos- Albly disruption,

|

of a standing in. the Bank of Eng. Rederal Rekerve York to buy all sterling offered in New York nt 4.0275.

British officials have emphasis. ed that if it ever beenme neces enry the Bank of England is en. titled to restrict or rescind this instruction without violating any agreement.

Sterling is the great currency

The Theory

Britain Theoretically of International trade outside the

would dollar area and the dollar area is have several other alternative the great suppiler of international (Continued at foot of next Col)

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"EMERGENCY SESSION"

OF CABINET

London, Aug. 17.

The Prime Minister, Mr. Clement Attlee, broke his holiday and drove to London from North Wales today to preside over a meeting of the Cabinet, which, despite authoritative dis- claimers, bore all the appearance of an emer- gency session.

for discussion which

to confer

also planned with nim executives in Washing price fixing and "unlaw- Britishful combination and con- ton regarding the new fitra tux.

spiracy" to throttle com- petition.

•

Special Case British officials in Washington mission's action was the "basing The chief target of the Com- talks would not hoped that the last more than five or six days. point" system of prices which identien) It alleged results in that time to They hoped by

prices being quoted by all firms. be able to report back London the answer to one crucial which may result in a

The action starts a procedure "conse question: with no special Con-

with the

to

gress session - the offing, and and desfat" order, enforceable

Marshall plan, thereby the courts. fore, at least seven months away, The Commission has ordered could Britain expect any other hearing of the action for assistance from the United States? Sept. 19.

A British source summed up

The complaint named as de- the coming conference

fendants the Iron this

and Steel way: "Aré We-as President Insiliute and all important steel Truman and the rest of the producers. It charged the pro- United States administration ducers with acting" "collusively agreed We were in 1945 in production and pricing" by special case? Or must we just which they were "able to frus- wait in the queue for the Mar. trate and destroy price com. shall plan aid with no special | petition".-Reuter. priority, and ineanwhile drifting aver closer to the brink of bank- ruptcy?"

'British officials hoped that the International political Implication of such a question would be carefully weighed by the United States Secretary of the Treasury, Mr. John Snyder, and his colles. mics,

Tomorrow's scision will be largely occupied with Sir Wil.

Prefers Scotland ToGermany

Dublin, Aug. 17. frid Eady giving details of how A 19-year-old former

the United States Joan has been

Coming on the eve of the Washington talks, be- tween Britain and the United States about possible relief from the conditions of the fast dwindling American loan, the meeting was seen by some to portend an imminent decision

spent, of Britain's present assets German airman, Horst on the kind of relief Britain will ask.

and how the British Government Mayer, who stowed! Before the Cabinet met, it was courses if her dollars ran out and indicated that only certain Minis-s tackling the problem, of what away in the -Glasgow- if Washington were unwilling or tere had been called, including the outside help is needed and what bound British ship Thel- unable to replenish them but this Chancellor of the Exchequer. Mr. effect the crisis will have on the chance is the only one which is Hugh Dalton, President of the rest of the world.-Reuter. unquestionably in Britain's own

of Trade, Sir Stafford Cripps, and Minister of Food, These head John Strachey. the convertibility

Departments most concerned of sterling would in theory vlo.

import crisis-the late all the sterling convertibility Britain's

which

the must find ogreements which Britu haя |

nude with various countries in dollars when the loan runs out In October or earlier, the Board the past year though of course of Trade which must prese длу contract is automatically through the switch-over of British industry to essential. production,

hands.

Restricting

frustrated it and when fulfilment becomes impossible.

But this conversion of dollars in New York has always been regarded in London, as policy and not as an obligation under any agreement.

Restricting convertibility stil

seemed the more probably choice tonight but if Britain did decide on the other courre Mr. Cobbold would be entitled to do so out of hand.

Double System Britain aways insisted that convertibility agreements

mere.

the

the

and the Food Ministry which bud. gets the foreign supplies pre- gramme on which Britain depends for more than half of its food.

Left-Wing Fusion In Poland

་

Ima, at Gothenburg.. *Sweden, and was handed to the local authorities when the ship called here yesterday, is to ap- pear before a Dublin court on Monday.

Mayer said he had been ar rested in Germany by the Rus alans, and had made his way to Sweden after escaping from the Soviet Union... Warsaw, Aug. 17.

After two days aboard the Poland's Communist Workers Thelma, cold and hunger drove and the Socialist Party him out of hiding, and he re

Mr. John Strachey has already

Party that his aim is to avoid a stated reduction in basic rations, and has said that if essential supplies are cut, he will introduce differential rationing between jobs,

Moving Fast

As the Biinisters assembled, it was learned that there were, plans yet for Mr. Dalton to go to Washington.

but

to bo

are discussing "unity in a compeatedly appealed not to be sent mon party," the Minister of Jus back to Germany. tice, Dr. Henryk Swiatkowski, allowed to settle in Scotland. announced in a speech at Poznan today.

Such unity, he added, depended on the political maturity of the working classes.

A Communist spokesman fold the same meeting that the two parties were now separated by ob- structionists and to obtain unity

themselves

Reuter.

Wot About

Russia?

Moscow, Aug. 17.

Observers recalled that when ly entitled other countries to send Britain went off the gold standard their sterling to New York but in 1981, all the major decisions

it was necessary to that Britain has no obligation to were taken on Sundays.

The circumstances today are not convert them into dollars or any-exectly comparable, but the week of elements of low morale." The United States authoritics thing else.

end summons to the Ministers was The two parties are approxi If Mr. Cobbold did rescind this taken to imply that the situation motely equal in size, each having in Korea have imprisoned up instruction, sterling in New York is moving rapidly.

a membership of about 500,000. In to 10,000. Korean patriots ano meetinga would sell at whatever price t One possibility was that the Parliament they both occupy the suppressed popular fetched, Britain could then still Cabinet meeting was concerned same number of scata under on the Soviet official newspaper, end demonstrations, Izvestia, retain the present dollar ex.with the stiffening of the instruc] agreement reached before the

said today on the second anni- change rate in London

to the British, delegation of elections in January this year, tlong Os a nominel official quotation Endy of the Treasury, who are munists.

exports headed by Sir Wilfred Earlier suggestions by the Com.versary of Korea's liberation.:

that the two parties "In spite of oppression, the government transactions, includ. due to

berit

talics ing food Imports, If so, the sterlWashington tomorrow, their

In should be fused were rejected by maaaes continue their struggle ing price of gold would not neces

It was conjectured that the the Socialists, and the Socialist for the democratic transforma- sarily risc.

Government may have had news Premier, who is regarded as the tion of Southern Kores on the But this double synters would that the run on sterling, far from strong man' of the Socialist lines followed in North Korea" have many drawbacks and if the abating, has increased, calling for Party, has stated that the time (administered by the Soviets), Bank of England did rescind this decisions within matter of days. was not ripe for fusion-Reuter. Izvcatia adda, Instruction It would probably Financial experts thought it

pon- mean an all round devaluationsible, in view of earlier develop- or depreciation of sterling against menta, that the latest drawing of the dollar and corresponding rise £137,600,000 a week ago might be

almost spent.Router.

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Tonight It appeared that un- either restricting. convertibility less Washington could provide or allowing sterling to depreciate resources to allow convertibility might be only a matter of days.' to be maintained, the decision on Reuter.

WELL, I CAN'T HELP LAUGHING WHEN I THINK WHAT LORD LOYAGE WOULD SAY. IF HE COULD SEE US *GETHER NOW!-

ENGLISH

LORD LOVE Us!-

LOOK!!!

PROTEST TO MILGOV

The article stated that the ninin reason why the joint. So-t vict-United States Commission harged with working out a Provisional Government for Korca was not making progress was because "the American dele gation insists that organisations The Berlin Committee of the | which are members of the Com- German Social Democratic Party mittee for opposing the Moscow has instructed the Party executivo decisions on trusteeship should to protest to the United States be permitted to take part in the Military Government against tho returning of political refugees in consultations. to the Sviet zone of Germany.

Berlin, Aug. 17.

"The Soviet Government can«

The protest was subject to con- not agree to such a violation of firmation of a report that General the Moscow decisions, and must Lucu: D. Clay United ordered the decisions," it gald-Reu- States insist on the exact fulfilment of Military Governor,

Ith 8,000 illegal immigranta row.

javaria to be returned to the Soviet zone-Router.

London, Aug 1

M. Constanting Tapidaria,

fer.

PR. EUGENE DEAD Stockholm, Aus. 17. The death of Price Eugene, ]

Grock Minister for Foreign At- faire, arrived in London by alr todny from the United States 82, Youngest brother of King whore he had been attending Gustav V and one of Sweden's the United Nations Security foremost painters, occurred to Council's discussions on Greece. | day.

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