LOAN TO BRITAIN

Ashburton Guardian, Volume 66, Issue 58, 18 December 1945, Page 3

LOAN TO BRITAIN

DEBATE IN LORDS AMENDMENT FOR REJECTION WITHDRAWN (N.Z. Press Association—Copyright.) (Rec. 11.30 a.m.) LONDON, Dec. 17. Lord Beaverbrook has withdrawn his amendment for rejection of the American loan agreement, says the Press Association’s Parliamentary correspondent. It is understood that Lord Beaverbrook does not wish to imply that his opposition to the British-American

loan agreement is less keen, but the withdrawal of his amendment will enable a straight vote to be taken for or against the agreement. Opening the debate in the House of Lords, Lord Pethick-Lawrenee said that Britain had to make concessions which she would have preferred not to make.. The United States regarded the settlement as extremely generous, and had made many important concessions. “If the agreement meant a return to the gold standard I should not be here. The agreement related sterling to gold, but there was a degree of flexibility. We have an absolute fight at any time to change our parity up or down. We are confronted with two alternatives. The first is to come to an agreement with the United States to build up a new world order and finance trade. The scheme, admittedly, is experimental. With patience and understanding there is a real chance that it can be made to work and where it falls short it can be amended. The

second alternative is to wage a financial and economic battle with the United States. I beg of you to weigh the consequences. Rejection would mean a quarrel with the United States and the end of all co-operation. We should be putting ourselves in an impossible position of isolation. We dare not fail future generatior.s by embarking on such a ruinous course.”

Widespread Mistrust

“I do not suppose any important international agreement has met with such, widespread mistrust,” said Lord Simon. “There can be no harm in saying to America that the likeness of the effort in war is not. the same as equal, sacrifice. It is no dis-service fo Anglo-American friendship to explain why we regard this agreement as a disappointing adjustment and a hard bargain. Our negotiators sought an agreement which could have given fuller effort to the surprising contrast between our situation at the end of the war and'that of America. This is very different from the sort of agreement the negotiators tried to get Nevertheless, I agree that this House should abstain from rejecting the agreement and bringing about the consequences it would ensure.” Lord Simon expressed concern lest America maintain discriminatory tariffs while exporting in free competition with the Commonwealth. Cheers greeted Lord Keynes’ .and Lord Addison’s assurances that the elimination of preferences throughout Britain required a substantial reduction of tariffs elsewhere.

Lord Samuels offered Liberal support for the Government and criticised the Conservatives’ abstention. “If the Americans attach to the loan what appear to us to be mistrustful conditions, let us realise from the .view of the American taxpayer that they wish to be assured that the loan will not be used directly or indirectly to subsidise British export trade in competition with America.” _ .

Lord Samuel added that because America realised that the economic collapse of Britain would mean disaster to the United States they have been ready to give assistance. Neither the sterling nor the dollar areas could fully prosper if isolated. The' right policy tor international co-operation seemed to be embodied in the agreements under consideration.