Evening star., 1947-08-13
British Loan
Revision Talks
Start Monday
$3.50, 900, 900 More
Withdrawn; Gold
Price Change Denied
BY The Associated Press

Secretary of the Treasury
Snyder announced today that
discussions will start Monday
with British officials on easing
terms of the $3,75o,OOO, 900 Amer
ican loan to Britain.
Mr.. Snyder told news conference
that the National Advisory Council
on international monetary prob
lens, headed by himself, will con-
duct the discussions on behalf Of
this country.
The British delegation, which will
fly here this week end, will be
headed by Sir Wilfred Eady. special
assistant to Choncellor of the Ex-
chequer Hugh Dalton.
Farley Strictly Limited.
Although no formal requests have
been made, it is understood that
England will ask concessions which
would permit her to conserve her
dwindling dollar supply by increas-
ing imports from British dominions
and decreasing imports from the
United States.
The present terms of the loan
agreement prohibit this.
Mr., Snyder emphasized it was
his understanding that the confer
ence would be strictly limited to the
British loan and would not delve
into other aspects of the British
dollar crisis or European aid.
He refused to comment on pros
pective changes. saying:
II want to find out what the Brit
ish delegation has in mind before
making any statement.
I'VE are prepared to listen to any,
thing they bring up. as long as it is
within the area of the Anglo-Amer-
ican loan agreement"
Two Other Developments.
In two other developments on the
international economic scene:
l. Mr.. Snyder scotched persistent
rumors" in London's financial dis
trict that the Treasury planned to
increase its price on gold from the
present $35 an ounce to $50. The
Secretary said there have been mo
plans and no discussions" of such a
move. An increase in the gold price
would assist European countries with
gold reserves to extend their pres
ent dollar credits.
2. The British withdrew another
$3.50, 200, 900 of their American loan,
leaving only SS500oo,60O available.
At the recent rate of withdrawal,
Treasury officials estimated the loan
would be exhausted in October, in
stead OF next June 80, as contem-
plated.
Besides the expected proposal to
increase British buying from her
dominions, advance reports indicate
the British delegation to the talks
here may seek a modification of the
loans terms which make the pound
freely convertible into dollars.
In the weeks since convertability
necame effective, the flight of dol
lars from Britain's dwindling sup
ply has increased.
The Treasury Secretary said he
could not guess how long the con-
ferences will last. He plans to 60
to London for the opening Septem-
ber 10 of the annual meeting of
the Boards of Governors of the In
ternational Monetary Fund and the
International Bank for Reconstruc-
ton and Development.
Advisory Council to Act.
The Importance of the talks was
emphasized by the announcement
that the National Advisory Council
will speak for the United States.
Members of the Council include
Secretary of the Treasury Snyder,
Secretary of Commerce Hartman
and heads of the Federal Reserve
System and the Export
Bank. In dealing with routine mat
tiers aides act for them.
1t was the National Advisory
Council which agreed last month
to relax one clause in the loan
agreement with the aim of permit
ting greater trade between the
United Kingdom and British terri
tories.
Britain has appealed for relaxa-
ton of two specific clauses, seeking
to relieve the drain on her dwindling
store of dollars
These clauses require Britain to
convert pounds into dollars on re-
quest in current trade transactions,
and prevent Britain from reducing
her imports from the United States
In order to increase them from her
| dominions and colonies.