1953-05-14 — Page 9

THE CHINA MAIL, THURSDAY, MAY 14, 1953.

Trade Balance

Huge French Deficit Formosa With The European Payments Union

BY SYDNEY S. CAMPELL, REUTER'S FINANCIAL EDITOR

It seems obvious that Britain's enlarged EPU surplus of $42

ぶ

million in April was largely the inverse of France's CPU deficit which is provisionally estimated at nearly $52 million, the highest monthly figure this year and wholly payable by France in gold or dollars.

M Once again, Britain and sterling have benefited from the weakness of the franc-but Britain's gain in dollars from the EPU is only $21 million for the month, while France's loss is nearly $52 million.

"Apparently France can find the $62 million, from recent additional grants of

U.8, aid.

MA

Solution Suggested For Trade Competition

thnu

France's deficit is believed to she is better off for dollars than have been inftated by speculation for sterling, and relatively better against the franc, in the form off for them than is Britain. of French exporters delaying in bringing home their earnings of foreign exeliange and of French importers settling their foreign exchange debts on rapidly as possible.

Britain's surplus must have correspondingly benefited from "confidence" ond speculative factors working In favour of sterling.

If the speculative night from the fenue has enlarged the Lon- dun balances of French banks, the French Government can claw

However, Japan's sterling position. ka In the past fluctuated so violently between shortage and surplus that one had better wait and

and fee what

happens this time.

hard

It is an Important develop- ment that sterling has become a currency in Japan es in so many other countries (including many Latin-American and Middle-Eastern ones), But it does not help British exporters, and it might cut both ways.

As and when Indo-China be-

Leadon, May 13. Mr Nagataka Aurily art, leading! Japanese newspaper

Baiti todny Bublisher, possibly only the opening up of them back this month or some comes recognised as a common trading areas would ease lure month, as it has more cause of the free world and not

hetween than once

done in the past, merely a French cause, a strain competitive pressure exporting countries like Britain. they reducing France's EPU on France will be reduced.

new

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deficit and Britain's EPU surplus. Perhaps when the world treats Japan and Germany.

Paris hopes that the French the French mere fairly, the Mr. Murayama, whin is t Chairman of the Board of Diree deleit will in any case fall, as French will treat themselves

Asaht and when it feels the effects of the newspar terk of

drst visit France's recent Import restric-more Shimbun, paying to Britain to atte the second lous and of Britain's recent re- he Inter-laxations on trade and tourism: Kentral assembly national

in Press Institute this

London

hot

Was

SERIOUS BLOW

fairly. Meanwhile devaluation of the franc would do no good, and France is the worst drag on any European moves towards convertibility.

Taipei, May 48... Formosa had an yulavour- able balance of trade of US$304.001.53 during April, according to figures released

yelerday.

Imports during the period to

talled US$7,760,139 and exports nmounted to $7,450,037.00.

STEADY RISE IN MESSAGERIES

STERLING AREA GOLD RESERVES

%

Good

Queen's Bldg.,

M