May 17, 1955 (22nd Parliament, 2nd Session)


Clarence Decatur Howe (Minister of Defence Production; Minister of Trade and Commerce)


Mr. Howe (Pori Arlhur):

That is true.
It has been assumed that sterling is convertible anywhere in the sterling area, but that is not the case. When we buy goods in Britain we convert dollars into sterling to pay for those goods. If we had sterling in Britain which we had accepted for wheat which could be used for that purpose, we would be very glad to have that sterling. The United States is selling for foreign currency with this proviso, that they leave the foreign currency in the country and use it for certain programs which are usually give-away programs. That is what the United States means by selling for local currencies.
The United States is a powerful country with tremendous revenues, and it is able to do that. In Canada, we feel we have done a good deal in assisting our customers abroad, since the war ended, but we believe we have gone about as far as we can in that direction.

Topic:   FINAL PAYMENT, 1953-54
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