Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-09-17
Canada Asks
British 10 Lift
Trade Bars

MONTREAL. Que, Sept. II
(AP).-A Canadian demand for
convertibility Of British sterling
marked the windup of the first
round of the Commonwealth
Trade and Economic Confer
ence here.
The demand was voiced yes
terday by Finance Minister
Donald Fleming, who concluded
the series Of opening statements
by delegates to the 11-country
meeting.
In asking for full converti-
bility, Mr.. Fleming meant re-
moval Of British trade restric-
tons. Convertibility would mean
Britain's pound could be freely
exchanged for any other cur
rency. Two outstanding ex-
Amples Of completely convertible
currencies are the United States
and Canadian dollars.
Sterling is also in large meas
ure convertible, Britain, how
ever, by means of quotas and
other restrictions, is careful
that she does not buy more
imports than she can pay for
In dollars.
Mr.. Fleming said the pound
Is virtually convertible now, but
he wanted the situation "rec-
ognized and regularized." If
Britain waited for the perfect
time to return to convertibility,
he said, she might never take
the leap 'in this imperfect
world"
Fleming Attacks Restrictions
He bitterly attacked British
trade restrictions. charging that
they were splitting Canada of
from the rest Of the Common
wealth and the Commonwealth
from "itS best outside friends"
The British reaction was re-
ported to have been cool. Brit
ain already has said she could
not move too quickly. She is
supported in that view BY most
other commonwealth countries
In the sterling area.
The British government had
one bitter experience in at
tempting convertibility too
soon. She made sterling con-
vertible in 1857 as part Of the
deal for a $3s4 billion United
: States loan. The move proved
to be premature and she had
to suspend convertibility.
Mr.. Fleming also urged that
the Commonwealth pledge IT.
self to join world commodity
pacts which would stabilize
prices, and that Britain re-
enter the international wheat
agreement after a six-year abb
sence.
Nickel Fight Recalled
Britain withdrew from the
international wheat fold in 1852
after a squabble with Canada,
the United States and other
exporting countries. This was
known as the nickel fight"
because exporting countries de-
manded a ceiling price of sos
a bushel, while Britain held out
for 50. The minimum price was
set at $1.55.
Britain again declined to re-
Join the three-year, 50-nation
pact in 1856. But Mr.. Fleming
indicated he was going to take
another shot at getting Britain
back in when the pact comes
up for renewal in 1859.
He also suggested that the
conference agree in principle
on building a Commonwealth
wide coaxial telephone cable
system to speed business trans
actions, develop a Common
wealth program of fellowShips
: and scholarships to build up a
pool of technical skills and set
up consultative machinery to
strengthen economic links.
Mr.. Fleming'S forceful pre-
sentation of Canadian ideas,
together with a Far Eastern
tour that he is reported to be
planning. raised speculation
that he is being groomed by
Prime Minister John Diefen-
baker for a prominent role in
Commonwealth economic af-
fairs BETTING Canadian eco
nomic growth.
Mr.. Fleming is to head Can
ada's delegation at the october
6 meeting of the International
Monetary Fund and World
Bank in New Delhi. He may
then visit Ceylon, Burma, Sing
apore, Hong Kong, Japan and
Indonesia.