Dollors, Francs and Pounds Maddening Merry-go-Round

Pounds Maddening Merry-go-Round in French Pacific Colonies

THERE is much scrambling for United States dollars in the French Terri tories of the South Pacific.

France, like Britain, is in desperate need of dollars; and Paris is well aware that the Pacific colonies, during the American drive against Japan in 1942-44. accumulated huge stores of US currency.

So France recently asked New Cale donia for 2.000,000 dollars, in exchange for sterling credit. New Caledonia de cided to transfer 1,500.000 dollars, in re turn for its equivalent in sterling; and the sterling is to be used to pay for Aus tralian goods sold to New Caledonia, which have reached large proportions.

New Caledonia made one important condition —that she be allowed to sell her ffirome to the United States, where there is a good and eager market. Naturally, Prance agreed—it means more dollars.

Meanwhile. French Oceania not only inds herself without dollars for the Mother Country—she has no dollars vherewith to buv essential goods from he United States. She is obliged to sell ill her copra to France, but she cannot :et from France the goods she needs— o she has asked France for credit of 2 a nillion dollars. French Oceania sells onsiderable Makatea phosphate to Aus ralia and NZ, and thus obtains goods rom those countries; but they do not ulfil her needs.

It is all a national treasurer’s night lare —but typical of conditions in th. r orld to-day.