Evening star., 1949-09-11

Dollar investments in
British Sterling Area
CONTINUED From First Page0
current payments disequllibrium
between the two areas but also
would facilitate reaching a future
payments equilibrium by lncreas-
ing productive capacity in the re-
cipient countries"
Would Help Balance Situation.
The present crisis is due to fall
ure of Britain and the countries
whose currency is linked to her
sterling to earn enough dollars
from their own exports and other
means to pay needed things that
cost them dollars.
Greater dollar investment to
boost production in the sterling
countries, especially in underde-
veloped areas, would help balance
the situation in two ways-by re-
ducing their needs for importing
goods for which they could collect
dollars.
Recognizing that private Amer
ican capital would respond to
the need for investment only if
offered adequate opportunities
and incentives" the conference
agreed that continuing study
should be devoted to means of
removing obstacles to the flow
Of capital.
1T was agreed" said the report,
"that special attention should be
devoted to the promotion of di-
rect investments. involving a con-
tribution of management exper-
ience, technical know-how. and
business enterprises, particularly
in underdeveloped regions of the
sterling area
It said the international Bank
SHOULD be regarded as the prime
source for international financing
of basic economic development
from public funds"
Aid BY Export Import Bank.
But, it added, there also should
be opportunities" for the Export
Import Bank to assist sterling
area countries "in financing the
purchase of United States goods
and services, normally on short
or medium term basis"
international Bank financing,
the report pointed out. depends
in the first instance on the banks
receiving from member countries
appropriate loan projects offer
ing reasonable prospects OF re-
payment"
It was agreed that the United
States, Britain and Canada
should encourage. and where
feasible assist, prospective bor-
rowers to present well conceived
projects which would qualify for
financing by the bank"
The report noted that both the
International Bank and Export
Import Bank adhere to strict
credit standards" and take into
account the contribution which
their financing may make to the
borrowing country's capacity to
repay.
The conferees had hoped to
have complete reports yesterday
from all four specialist commit
tees they had set up to study spe-
cific proposals. but the overseas
investment group was the only one
to finish the work.
3 Other Committees Continue,
Mr.. Snyder said the three other
committees had some additional
work to do" over the week end.
They are studying the feasibility
Of:
/: Giving the British freedom
to spend more of the dollars they
receive under the Marshall Plan
outside of the United States, for
such things as Canadian wheat, so
as to reduce the drain on their
dollar reserves from other sources.
Eliminating from American
customs procedure much red tape
that the British and Canadians
complain discourage their export
ers from doing more business here.
3. Increasing American stock
piling and commercial purchases
of such raw materials as rubber
and tin from British areas in
southeast Asia.
Along with action by Britain
herself to boost production and
sale of her goods in this country
and curb temporarily her imports
costing dollars, such measures
have been proposed to help raise
the dollar earnings of the sterling
area countries and end the drain
on Britain's gold and dollar
reserves that have been dwindling