7 MAY 1954, Page 4

The Pound in Europe

ment, partly by a funding arrangement. But this offer is mode conditional on the creditors adopting measures (such as more liberal import policies, and the reduction of export subsidies) to reduce their disposition to pile up credit. The negotia'. tions may yet come to a formally satisfactory conclusion. But Britain is afraid that, even so, they will not have cured Germany's tendency to be a European creditor. And eon' tinental Europe (other than Germany) is afraid that, even so, Britain is still planning a quick get-away into real converti' bility, which would end the present, cosy substitute.