Evening star. [volume] (Washington, D.C.) 1854-1972, 1947-08-24
Britain May Request
Further Loan Changes
Within Two Months
BY fhe Associated Press

Inc, BLUSH government may
request the United States to ap-
prove further changes in the S.
750, 100000 loan agreement with
in two months.
American officials yesterday frank
ly acknowledged this probability
saying they are far from sure the
concessions already granted the
British will enable them to survive
their grave dollar crisis.
AS the dollar conference ended,
these officials said there was a tacit
understanding on both sides that
the British can return for more
crisis talks once they determine
how much help the changes already
agreed on will provide.
At least one top-rank American
delegate is known to feel the modi-
f1cation permitted Wednesday in the
so-called "convertibility clause" will
slow the run on Britain's scarce
dollar supply but will not stop it.
Congress Would Be Consulted.
If a new conference with the Brit
ish is necessary, American officials
believe basic changes in the loan
agreement will be the only thing
left to consider as means OF aiding
London second time.
This means Congress will enter the
picture. since any major changes
would have to be submitted to it.
Although congressional action
might take months, there is some
feeling among the British that the
help they can realize in the long
run from such changes will make
up for the wait.
American officials said they are
certain they have not violated the
will of Congress-as expressed in
legislation authorizing the loan-by
agreeing to ease the convertibility
provision without first Citing q con-
gressional go-ahead
Clause to Be Disregarded.
They explained their reasoning
this way:
The United States Government
has agreed to allow the British to
disregard-for the first time being
a clause in the loan agreement.
This is the provision which makes
it mandatory for Britain to give
American dollars to any one who
wants them in exchange for British
pounds earned in current trans
actions.
During this interlude, the British
have time to set up a system which
will make it possible for them to
check up and make sure that the
money each country turns in actually
has been earned in current" trans
actions.
The loan agreement binds them to
swap their scarce dollars for pounds
only when current transactions
such as day-to-day trading are in
volved. That is the nub of the
agreement that the new concession
follows Congress rules.
Sought to Stop rum
Until last week each nation told
the British whether the money they
handed in was earned as a result
of current transaction and the
British accepted their word.
But the run on Britain for dol
lars grew to such proportions that
the British-ahd the United States
concluded some countries were
not playing fair and were turning
in a great deal of British currency
| that was not earned in every day
trading. N"
! These countries presumably
wanted dollars to spend in the
United States for American prod
ucts and goods-principally food
land raw materials. American COM
panies would not accept pounds to
pay for such purchases.
This demand threatened to ex-
| haust what Was left of the Ameri-
can loan in matter of weeks leav-
ing the British without money to
buy in the United States. So when
the loan dwindled to 100000, 900,