ABSTRACT
No subject which entered into the negotiations was more mysterious, in the way in which it developed and in the way in which it was solved, than the problem of sterling. Throughout the preparation by the Community of their negotiating position an important distinction was observed between questions relating to sterling and the state of the British economy. In a conversation with Mr. Rippon, M. Marjolin said he had been enquiring in Brussels about the proposed discussions on sterling. To complete the picture, it should be stated, that throughout the period the official sterling area balances were rising. The sterling area agreements were known to be on the way to renewal; the renewal of the Basle Facility was assured. When the Council of Ministers met, M. Barre of the Commission 'circulated a detailed paper in an attempt to reach a compromise between what Barre still thought were French views and those which had been expressed by the other member States'.
