U.S. Desire To Aid Revival In Britain

Auckland Star, Volume LXXVI, Issue 215, 11 September 1945, Page 5

U.S. Desire To Aid Revival In Britain

N.Z. Press Association —Copyright 1.30 p.m. NEW YORK, Sept. 10. British-American financial and trade negotiations are expected to have important effects on the pattern of international postwar trade, says the New York Times Washington correspondent.

The immediate purpose, the correspondent adds, is to devise ways whereby Britain can secure the goods necessary for the reconstruction and revival of her peace-time industry and foreign trade, but also involved are the reconstruction of other major countries seeking American aid, and the development of United States foreign trade and peace-time economy.

The Administration accepts the principle that Britain's revival is of considerable importance to America, and, moreover, it concedes that the British, as the result of the war, are in a more hazardous economic position than they have ever been in during the past century, and are facing much more complex and more dangerous problems than the United States, Russia, France, or any other major ally. Consequently, the Administration is willing to give all possible assistance to Britain, yet it

recognises that it is not authorised, without further legislation, to give the British all the aid required. Moreover, the Administration has not at its disposal more than a fraction of lending and credit facilities to meet the requests of other countries.

Some other countries are willing to take loans at the suggested rate of 2.38 per cent, but the British feel they are unable to accept an additional loan at this interest because they do not see how they could repay it.

Washington points out that it will be difficult to give one interest rate to one country and a different rate to another. However, countries able to buy most American goods will probably receive a preferred position and Britain was America's best pre-war customer.

The Associated Press correspondent in Washington says it has been estimated that Britain would need from 3,000,000,000 to 5,000,000,000 dollars, which amount she is unwilling to borrow. The British argue that the United States should help to share the cost of the war since the outbreak of hostilities. Americans argue that if the British would scale down the 16,000,000,000 dollar debts they owe sterling area countries they could take an American loan with no difficulty. Moreover, Americans contend that Britain, to qualify for a loan, must agree to modify her Empire trade restrictions in order to promote international commerce.