FOREIGN 'ECONOMIC AND COMMERCIAL POLICY


especially wheat. Only in nonferrous metals, machinery, chemicals and
petroleum did the United States make substantially greater improve-
ments than Canada in the share of total United Kingdom imports
supplied. Unquestionably these are categories in which many products
would not be available from Canada.


                              Annex A
       GOLD AND DOLLAR-RESERVES OF THE STERLING AREA
       EXCHANGE EQUALIZATION ACCOUNT HOLDINGS OF GOLD,
              UNITED STATES AND CANADIAN DOLLARS
                             In Millions
                                 of       In M3illions In Millions
                             U.S. Dollars of £ at eld rate of £
at new rate
December 31, 1948               1,856        457
March 31, 1949                  1,912        471
June 30, 1949                   1,651        406
September 30, 1949              1, 425                    509
December 31, 1949               1,688                     603

                              Annex B
                              [Extract]
    FACTUAL STATEMIENTS ON INTENSIFICATION OF RESTRICTIONS BY
                        BRITISH COUNTRIES

               B. BRITISH IM'PORT LICENSING POLICIES
   An import licensing regime, instituted for some commodities at the
beginning of the war by the Government of the United Kingdom and
subsequently extended, has applied to almost all imports since June 10,
1940, although open general licenses are issued for a few commodities
regardless of country of origin and for a larger number of commodities
:the product of soft-currency OEEC countries. The wartime system for
controlling imports has been continued to the present time in essen-
tially the same form. The major change in import licensing policies
dates from the-convertibility crisis of 1947 after which ,increasing
emphasis was placed on the diversion of imports from hard to soft-
currency sources of supply. Since the end of 1947, import licensing
policy has been to cut imports from the United States and other dollar
countries to the lowest possible level and to issue licenses for the im-
port of all possible supplies of essential foodstuffs and raw materials
from the sterling area and other soft-currency countries obtained in
large measure by means of bilateral agreements and other purchasing
arrangements. Import licenses for luxury goods and other items not
considered as essential have been issued for such goods obtained from
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