representatives believe that as a result, the Germans now accept
Mr. Butler's view of the circumstances in which, and the stages through which, sterling and the Deutschmark should become convertible. That is to say, the Germans, who have wanted for some time to make the Deutschmark convertible, in order to be able to exploit their European surplus which is at present locked up in the EPU, have now been convinced that it would be better for everybody if the Deutschmark became convertible after, not before, sterling. The British also believe that the Germans have been convinced that sterling cannot become convertible until sterling area reserves, and the climate of world trade, are rather healthier than they are at the moment. Formally, the British may be right. But an Olympian might reflect that Dr. Erhard and Dr. Abs are formidable economic personalities, and Mr. Butler's " triumph " may well be their opportunity. As they are alto firm believers in free, multilateral world trade, this may not be a bad thing.
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