840.00R/6–2950
Memorandum by Mr. Louis C. Boochever, Jr., of the Office of European Regional Affairs, to Mr. Hal Reynolds of the Same Office
Current Developments on EPU
The Executive Committee of OEEC has agreed in outline on the principles for the functioning of the EPU. The current agreement was presented to the NAC1 Staff Group and will be discussed in the NAC itself on Thursday, June 29. The total volume of credits and drawing rights associated with next year’s intra-European payments have been estimated at $1,485,000,000. It has recently been concluded that the credits will not be collectible until three years after the termination of the EPU. The U.K. is to receive special assistance from ECA in the event the use of existing sterling balances by net debtors would lead to U.K. gold payments; and a special reduction in total “quota” has been provided Belgium to meet its objections, as well as some fifty-five million dollars direct aid. Final action by the OEEC Council is scheduled to take place on July 7, and prior to that time various details, including the commercial policy provisions, remain to be agreed upon.
- National Advisory Council.↩