Evening star., 1949-09-13
Text of Connunique on Dollar PorIeys

s., ext OF NOmn7
70 The tert OF the joint COM
y nnuniQue issued on the con-
I'D clusion of the Anglo-American-
a. Canadian financial talks:
/. Representatives of the United
scStates, the United Kingdom and
uCanada have met during the past
-,tweek to examine the trade and
financial relationships between
sathe sterling area and the dollar
g.larea. The pound and the dollar
are the two principal world trad
ling currencies. While the develop
.ment of a satisfactory balance OF
payments between the two areas
etis a matter of fundamental con-
e4cern to the democratic world. it
s4involves many problems which
concern in the first instance the
=. governments which are the Gen.
{; ters of these two currency systems.
The present discussions were
held to examine these problems.
II was recognized that the task
o. working out conditions under
a, " tch world trade can develop
Is ,dily and in increasing free
d. 1 will require strenuous and
s.. aimed effort, not only on the
.p2.t of the United States. the
United Kingdom and Canada, but
~ also by all other countries desiring
the same objectives.
:, 2. It was agreed that the COM
20 mon aim is to work toward an
:. ultimate solution which will main
Z; tain employment and establish
:. equilibrium Of international trade
on a mutually profitable basis at
" high levels. These objectives and
/. general course of action have al
= ready been set forth in the United
=, Nations Charter, the Breton
& Woods agreements and the
= Havana Charter for an Interna-
,tional Trade Organization. 1t was
the broad purpose of the present
y meetings to explore, within this
o. general framework, various spe-
a. cif1c measures which the three
a governments might take to pre-
ssvent a serious breakdown in the
dollar-sterling relationships which
would have led to Gripping
limitation of dollar imports into
: the sterling area and to hasten
I, the achievement of those objec-
; tives.
:: London Talks Carried Forward.
: 8. These conversations have
carried forward the consultations
initiated in London during July
, $40. They have resulted in a
clear understanding of the char
I acter of the difficulties to be faced
and an increasing realization that
: q fully satisfactory solution will
= necessitate continuing efforts in
many directions. In the course
of these conversations it has be-
come possible to discuss with COM
plete frankness specific problems
and the types of measures which
will have to be taken if the three
countries are to achieve their
common purpose.
4. In the early stages of the
discussion attention was given to
the immediate problem confront-
ing the United Kingdom and the
rest Of the sterling area as a re-
suit of the rapid decline of gold
and dollar reserves. Note was
taken by the three governments
of the emergency action which
sterling area countries have de-
cided to take to meet this situa-
ton. These measures are not
pleasant ones; they will cause
difficulties and sacrifices for every
one concerned. Nevertheless, they
are a temporary necessity, and are
recognized as such by all three
governments.
S. The ministers we're In COM
p,ete agreement that no perma-
nent solution to the problem
could be found in the emergency
steps contemplated. A more
fundamental attempt would have
to be made by all concerned to
expand the dollar earnings Of the
sterling area and to increase the
flow of investment from the North
American Continent to the rest
of the world, including the sterling
area.
Joint Action Held Necessary.
6. This more fundamental at
tempt would involve both sepa-
rate actions Of the three coun-
tries operating individually, ano
joint action by the three acting
in cooperation with each other
In approaching these possibili.
ties of individual and joint &C.
ton on the sterling dollar prob.
lem, there was common agree.
ment that this action should bt
based on the assumption thai
extraordinary aid from the NORTH
American Continent would have
come to an end by the middle o1
1852. This would require that the
sterling area increase its dollar
earnings so as to pay its way by
1852. This would require in the
sterling area the creation of ap.
propriate incentives to exporters
to the dollar area and a vigorou.
attack upon costs of production
to enhance the competitive posi-
tion of sterling area products
Maximum efforts would be made
to direct exports to the dollar
area and build up earnings from
tourism and other services. AS
part of this export campaign by
the sterling area countries, it was
recognized that an essential ele.
ment was the creation of feel
ing Of confidence on the part OF
sterling area exporters. They
must feel that they will be af'
forded the opportunity to remain
in the markets of the United
States and Canada, in which they
will have gained a place, and thai