CAB129-36 — Page 342

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Sm.

Canadian wheat and flour

309

Canadian cheese

Canadian bacon

Canadian eggs

Canadian pulp and paper

Canadian timber

HAHAN

15

13

17

10

NONWUILO

23

Canadian tobacco

8

Total

395

There is also expenditure of $101 millions on non-Canadian items

which are either ineligible or which cannot be documented

under existing procedures, making a grand total of $496 millions.

7.

It is necessary to draw a distinction in these items

between those on which a decision lies with E.C.A. and the

agricultural commodities which are, or may be, declared surplus

by the Secretary for Agriculture. The major item in the latter

category is wheat. Here, if the Secretary for Agriculture

declares wheat surplus, E.C.A. have no option under existing

legislation: they must refuse it for E.C.A. financing.

the other items, cheese, bacon, eggs and tobacco (totalling

$53 millions) are in the same category.

8.

Of

As stated in paragraph 4 above it had been hoped

that it would be possible to re-arrange the United Kingdom

purchasing programme so that E.R.P. dollars could be expended

on other essential commodities while wheat could be bought from

the free dollars so released. This, however, is not possible.

On the basis of present estimates there should be at

best 69 million free dollars available for purchases by the

United Kingdom made up as follows:

9.

United Kingdom exports

Sm

+ 620

Net invisibles

197

Rest of Sterling Area

188

Gold and dollar settlements

243

Capital transactions

+

42

Imports that can be paid for from

earned dollars

34

InvisiPage 342f66are eligible for

E.C.A finance (say)

Total

-3m

Page 342

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