Evening star., 1948-10-01
Outlook on Converting 4
Pounds Into Dollars
Discussed Informally

Prospects of Britain again max
ing the pound sterling convertible
into dollars has been under discus
sion quietly among members of the
British and American delegations at
the meeting of the governing boards
of the World Bank and the Inter-
national Monetary Fund.
The third annual session of the
two institutions closes today. Final
tasks are the election of single
chairman of the two boards Of gov
ernors and selection of a meeting
place for next year.
The free conversion Of the pound
sterling into dollars in foreign ex-
change was one of the obligations
the British shouldered under the
S,75o, 100000 loan from the United
Hates.
THE British dollar crisis" of the
tnmmer of 1947 forced the suspen-
elon of conversion, the United States
xgreeing to waive his part of the
toan agreement. 1t is reported that
the aim of the United States par
ticipants in the current discussions
Is to get from Britain a pledge to
work toward resumption of the free
conversion Of the pound into dol
lars.
Early Action Unlikely.
American oficials are reported not
to expect Britain will be able to
restore the free exchange of dollars
for pounds in the near future. But
If resumption Is to be long de-
layed. they are reported to want
the situation recognized by amend
ing thr loan agreement by con-
gressional and parliamentary action.
In the election today it is re-
garded as likely the two institutions
will turn to France for their chair
man. In that case it is expected
the choice will fall on Pierre Men
des-France, his country's represent
alive on the Board Of Governors of
the fund and an alternate governor
Of the bank.
The present chairman is Wang
Yun-wu, China's finance minister.
Representatives of Great Britain
and OF the United States have held
the Craftsmanship for years period
each.
Rio Possible Site.
Before the voting on the site of
next years meeting, it was be-
lieved the choice lay between Paris
and Washington. There was some
talk, however, that the institutions
might choose Rio de Janeiro.
The two institutions which are
meeting at the Shoreham Hotel,
have Complementary but sharply de-
fined different functions. The World
Bank-the International Bank for
Reconstruction and Development
makes loans for specific projects to
aid recovery and bring about post
war development. The fund seeks
to keep the rates of exchange for
various national currencies on a
stable basis.
The bank late yesterday elected
nine executive directors to serve for
two years. Newly elected were
Donald Gordon Of Canada, deputy
to Graham F. Towers, governor OF
the Bank of Canada, whom Mr..
Gordon succeeds as an executive di-
rector of the World. Bank. Others
are:
Thomas Basyn of Belgium, who
has been an alternate as executive
director to Franz de Voghel of Bel
eium; Jose Barreda Moller of Peru
who has been an alternate governor
of the bank; Mekin Onaran Of Tur-
KEY and Emilio Toro of Colombia,
who has been a governor Of the bank
and fund.
Directors Reelected.
Those reelected executive direc-
tors are j. w. Beyen Of The Neither
lands. Leon Baranski Of Poland,
chosen by the votes of Poland. Yugo-
slavia, Czechoslovakia and Finland;
Costantino Bresciani-Turroni OF
Italv and S. G. McFarlane of Aus
tralia.
The five biggest stockholders OF
the bank. the United States, Great
Britain, China, France and India
do not submit candidates for execu-
tive director, but each country ap-
points one.
In addition to Mr. de Voghel and
Mr.. Towers, executive directors now
serving who were not reelected, were
Victor Moller of Chile, Luis Machado
of Cuba and K. Varvaressos OF
Greece.
Siam became the 4sth nation to
become a member of the bank when
its application was accepted by the
governors. Earlier in the day, 1t had
likewise been admitted to member
ship in the fund.
The Austrian Finance Minister
DIR. George Zimmerman, said yes
terday his country has proved its
national existence rests on a solid
economy. He spoke to luncheon
IN the Wardman Park Hotel.