CAB129-36 — Page 346

Page 346

Having regard to the necessity for preserving these

reserves at (and indeed re-building them to) a reasonable

working level, the United Kingdom Government consider that this

further drain on them must not be allowed to occur. As stated

above, representations to the E.C.A. authorities about the urgen

and importance of this problem have already been made, but it

is clear that it is one which will have to be raised at high

levels in Washington. It is hoped that the Canadian

Government, appreciating its gravity and its crucial effect

on the United Kingdon's purchasing power in Canada, will feel

able to assist the United Kingdom Government in whatever ways

would scem to be most effective to secure a solution.

satisfactory to both Governments

10th August, 1949

Page 346

G

- 5

Page 346