Evening star., 1949-09-03
Decisive British Stand
On Pound DevaIuation
Viewed as Essential
BY the Asseeiaisd Press

that Great Britain's economic
comeback route looks bleak until
she rules decisively one way or
another on devaluing the pound
They said Britain's answer on
this point is probably the most
important issue in the forthcom-
ing British -American-Cana
financial talks.
II rumors of devaluation per-
sist after the conference ends,
they said. many British customers
are likely to continue to hold
back buying British goods, thus
making it difficult for Britain to
earn the dollars she needs so
badly.
Showdown in Buying.
This showdown in buying, es-
pecially by some American Gus
toners, has been one of the fac
tors that has aggravated the Brit
ish financial crisis in the last few
months and caused the Labor
government to dip deep into its
reserves.
Sir Stafford Grips, British chan
cellor Of the exchequer, has re-
peatedly tried to spike these
rumors. But thus far he has not
succeeded. In fact, an increasing
number Of newspapers and busi-
nessmen have joined the chorus
that Britain's money is over
priced under present conditions
and that devaluation is necessary
to increase trade.
Sir Stafford will get another
chance to put these rumors to
rest during the meetings with
Treasury Secretary Snyder and
Secretary of State Acheson and
top Canadian cabinet officers.
These discussions are scheduled
to begin next Wednesday.
Regarded as Important Step.
Mr.. Snyder and other top rank
ing American Government finan-
cial and economic experts are said
to believe Britain must cut the
value Of the pound if Britain's
goods are to be able to compete in
today's world market.
However, Mr.. Snyder and Mr..
Acheson are reported to have de-
cided not to press the British lest
the United States be blamed If
devaluation fails to solve the Brit
ish slump. American officials do
not regard 1t as a "cure all" but
are convinced it is one of the i'm
portant steps necessary to restore
confidence in Britain's economic
future.
The preliminary agenda drawn
up by British -American-Canadian
'"fact finders" in their sessions
which ended yesterday made no
mention of devaluation as a topic
for discussion at Wednesdays con-
ference. The three-power nego-
tiators agreed to suggest a half
dozen steps which could ease Brit
aims dollar shortage but which
would not solve the long range
British problem.
France May Raise Issue.
The agenda that will guide the
cabinet level discussions however,
is flexible enough so that devalua-
ton can be raised as part of almost
any topic to be discussed.
Some diplomatic officials be-
lieve it is possible that decision
on the future rate of the British
pound may be delayed until after
the International Bank and
Monetary Fund meeting which
begins here September 13.
The international Monetary
Fund was created three years ago
to stabilize world currencies and
it would have to approve any
change in the par value of any
member country. There are re-
ports that the French government
delegation is determined to bring
up the question of devaluing the
pound at this meeting.
CANADIAN Foreign Minister Les
ter B. Pearson and Canadian
Finance Minister Douglas Abbott
are scheduled to arrive here Mon
day to be on hand for the three
power financial conference. Brit
ish Foreign Minister Bevin and
Sir Stafford are on their way
aboard the Mauretania.
Eisenhower Favors Help