CAB129-36 — Page 344

Page 344

programme amount to $395 millions.

10.

164

This position is, therefore, one of extreme gravity •

Its gravity is increased by the fact that the United Kingdom

cannot by any operation on its own import programme increase

the number of free dollars available. All eligible items which

can be documented are already financed from E.R.P.; even if wo

cut theso to nothing there would be no more frou dollars

available. Relief can only come, therefore, by real savings

on the items listed in paragraph 9 above. It is true that

this figure of $69 millions is a provisional estimato. The

true figure may be higher, for the other Commonwealth countries

may make biggor not dollar savings than we have assumed. But

it may be worse, for the present rate of deficit is very much

larger than the forecast used for this calculation. It would be

wrong, therefore, to base any hopes of a solution of the problem

on these grounds.

11.

The general position has been put to E.C.A. who have

not been able to hold out any hope that they could take action

to change the legislative position which binds them on all

agricultural commodities if they are declared surplus. Of

these by far the major item is whoat. On this the only solution

which they can sec is that wheat crops in the U.S.A. might be

such that the Secretary for Agriculture can say that it is not

a surplus commodity. This is doubtful But unless it happens

the United Kingdom will have E.R.P. funds which it cannot spend

on essential needs. In a word, the whole purpose of the Foreign

Assistance Act is defeated. For, if this state of affairs

continues, it is evident that the volume of purchases from

Canada which would require to be financed from free dollars

would far exceed the amount of these dollars available to the

United Kingdom and we would only be able to pay for our imports

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from Cana

Canpage 34442

using dollars from the reserves.

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