London, June 8.
1HE Treasury announced important steps have been taken in continuation of the policy of basi ig foreign trade on an official rate of exchange and limiting the volume of transactions in the free market for sterling, For the time being no licenses will be given for sale in Britain of securities owned by persons resident outside the sterling and franc areas.
All exports to the United States and Switzerland must be paid for in sterling obtained from exchange control at official rates, or American dollars or Swiss franes respectively.
As regards transactions with other countries outside the sterling and Allied areas, the same effect will be broadly achieved by extending the system of payments agreements and special accounts which enable a settlement to be effected in sterling! through official channels' at official rates.
Regulations requiring payments for exports of jule, rubber, tin, whisky, furs and diamonds to certain. coun: ries, Including Belgium, the Belgian Congo, Netherlands, Netherlands Em~ pire and countries of South and Cen tral America, to be obtained in certain specified foreign currencies (or in sterling obtained from exchange control against those currencies) now have been revoked in the case of exports to countries other than the United States and. Switzerland, Similar arrangements have been or will be made by other countries in the. sterling area.
"The measures will further reduce the volume of sterling that can be dealt in on foreign markets and enable British foreign trade to be con acted. on the basis of sterling at he oficial rate, Tt is explained this will ensure benefit of a stable rate both to Britain and the countries with which she trades, It will moreover ensure full value is received for exports either in the form of imports of one of the eurreneles which ave urgently required for payment. of materials, foodstuffs and munitions.
pointed out that British trade with the sterling area, namely, the British Empire (excluding Canada, Newfoundland, Hongkong) plus Egypt, Sudan, Traq is conducted in sterling and no question of exchange arles, 'The Canada agreement having' the effect of a payments agree ment is already in operation,
Text read from the printed page and cleaned; old type leaves the occasional error.