JULY 14, 1947 7 Convertible Sterling the British treasury will do their best UN Score Card to find something else to sell to the A' LL over the world, clerks in banks Congress ratified the Interna- Netherlands-in pounds. The British and investment houses have put tional Refugee Organization char- point out that in view of the limited a big red circle around the date July 15. At that time, clauses of the Ameri- ter and contributed 453/4 percent of world supply of dollars, any country which uses more than its fair share the IRO's first-year budget. can loan of $3.75 billion to Britain The UN Statistical Office re- will do so at the expense of some other come into operation, affecting the con- vealed that Great Britain and Switz- country. vertibility of the pound sterling. Some erland are exporting more, while The overriding problem for Britain people have predicted a financial earth- France and Norway are exporting of course remains: How to speed up her quake, but a majority of the experts believe no more than mild tremors are less, than their prewar volume. US exports enough to pay for her needed exports have increased 100 percent imports of food, raw materials and heavy to be expected. machinery. Thus far, she has gone over prewar days. In the recent past, the entire British The Security Council heard only about two-thirds of the way toward Empire, plus Egypt, the Sudan and Iraq, the necessary target, in spite of the great United Kingdom delegate Sir Alex- but minus Canada and Newfoundland, ander Cadogan support a US-spon- hardships her people are forcing on has been in the "sterling area." This themselves. In one sense, time is work- sored plan for a Balkan border has meant that operations of the sterling- ing in her favor. The international patrol (see page 5). area countries in foreign currencies political climate has changed greatly have been handled through London even since the Anglo-American loan and were under British control. There very slowly except in the case of Ar- agreement was signed. With a Marshall was a single "dollar pool," for instance, gentina, France, Sweden, Norway, Bra- plan in the offing, with Russian-Ameri- and no sterling-area country could buy zil, Uruguay and Egypt. can relations hardening, London natu- United States goods without getting the Countries all over the world, both rally looks to Washington for a more consent of the British government and inside and outside the British Empire, tolerant attitude toward British world- drawing its dollars from the central want to turn as much sterling into wide trade and the British problems of source. One of the terms of the Anglo- dollars as possible, and as quickly as protecting the pound, than seemed pos- American loan agreement was that, be- possible. For months, businessmen from sible even a few months ago. ginning July 15, on current transactions these countries have been in New York only, pounds should be readily convert- placing tentative orders to be executed Shipyard Strike ible into dollars. after July 15. There is an additional problem Britain, on the other hand, must pro- T giant Gantry cranes in 18 major created by British sterling debts all over tect her currency against this world- East Coast shipyards were stand- the world. During the war, and chiefly wide, serious shortage of dollars-a ing idle as the Industrial Union of Ma- for war purposes, Great Britain bought shortage which exists in various coun- rine and Shipbuilding Workers of goods in some 20 countries to the tries without regard to their supplies of America, CIO, stayed out on strike. amount of $14 billion. She paid for sterling. Britain is helped greatly by the Behind the walkout lay these points: these goods in sterling, whose convert- fact that only sterling balances arising C The union terms for ending the ibility still remains in her hands. In from current transactions must be made strike-a wage increase of 13 cents per other words, these countries have large convertible after July 15. She is urging hour retroactive to January 1, 1947, amounts of sterling which they can only other parts of the empire to exercise re- and six other minor points. spend inside the sterling area, where straint in buying dollars; and in many goods are extremely scarce, and not in cases, there are still rules left over from C Shipyard workers have had no in- the United States, where goods are the war covering exports, imports and crease in wages since early 1946, despite somewhat more plentiful. If these bal- exchange, which can and will be in- a rise of 20 percent in the cost of living between then and March, 1947. ances were to be convertible into imme- voked. diate claims on Great Britain for goods, She will also seek to use the device The shipbuilders have ignored their they would represent an obligation she of persuading countries with sterling pledge under the government-industry- could not possibly meet. The loan balances to trade with one another in labor Zone Standards Agreement to par- agreement stipulates that negotiations sterling as far as possible, postponing ticipate in wage reviews in 1946 and shall begin on July 15 in regard to the evil day when the demand for 1947. making a small amount of this money dollars shall arise. Thus Argentina CI The Bethlehem Steel Corporation, convertible. The British look upon might sell beef to Britain and get largest shipyard employer, which sets these frozen sterling accounts as war pounds in exchange; she could use these the pattern for the industry, recently debts which should be scaled down very pounds to buy olive oil and cork from upped the wages of AFL West Coast heavily; the United States also wants Portugal; Portugal might buy tulip shipyard workers by 13 cents. An Fast to see this done. Thus far, however, bulbs from the Netherlands with the Coast Bethlehem negotiator said that negotiations for this purpose have gone same pounds; and keen-witted men in increase was "an unfortunate mistake