‘Dollops of Dollars’ (1949–50)

Abstract

Devaluation of sterling precipitated devaluation of most other European currencies. Within the Commonwealth Pakistan refused to devalue, but all other members of the sterling area did so with even Canada following suit to the extent of 10 per cent. The European countries were upset by the absence of early notice of the British devaluation, and by the way the United States appeared to be prepared to make special arrangements for Britain, ignoring the rest of the Community — especially as it was agreed that special consultations were to continue between Britain, the United States and Canada.¹ The French Government was annoyed to receive only 48 hours notice of the British devaluation.² When he next visited Paris Cripps had to spend some time trying to placate Britain’s European partners.³