LOAN NEGOTIATIONS

Auckland Star, Volume LXXVI, Issue 251, 23 October 1945, Page 3

LOAN NEGOTIATIONS

BRITAIN AND AMERICA REPUBLICANS' OPPOSITION O.C. SAN FRANCISCO. Sept. 24. The' opposition surrounding the economic relations between Great Britain and the United States resulted in a sudden uprising against a multi-billion dollar loan to Britain, when Republicans made a charge in the House of Representatives that the American people were being called upon to finance the socialisation of the United Kingdom. Asserting that the Labour party plans to take over certain business and industries amounted to "Governmental banditry," Mr. Knudson, Republican leader of the Ways and Means Committee, asked: "Just what kind of saps do they think we are?" Mr. Knudson added that "we should tell the Government of the United liLngdom that if they wish forcibly to take over all private activities they must themselves finance it and, failing in that, they should look to Moscow for such financing. "The programme that we are asked to finance," he said, "is alien to our concepts of government and contrary to our philosophy of economics. While the war was on, the American people in many instances bought War Bonds until it hurt, but it is to be doubted that they will continue to buy Government bonds, the proceeds of which are to be used to promote a programme of Governmental banditry, for that is precisely what it amounts to. I, for one, will not invest a single nickel for that purpose."

Applause from some members on the Republican side greeted Mr. Curtis, Republican of Nebraska, when he shouted: "The already over-burdened taxpayers of the United States should not be called upon to pay for the socialisation of the industry of England." The uprising was timed with the opening in Washington of conversations between United States and British representatives looking toward post-war financial aid for the British to take the place of lendlease." President Defends Britain Republican criticisms of United States aid. to Britain got rough handling subsequently from President Truman, who called them "perfectly silly." As negotiations for the multi-billion-dollar financial assistance developed in Washington, the President stated that American funds would not be used to influence British politics. His views came out at a White House news conference and strengthened the impression that the President was ready to support recommendations for a loan whenever Anglo-American negotiators could agree on terms. It was made clear that the British wduld prefer some sort of cost-free grant, but Americans said there was no chance of their getting it. The President was asked about the statements of Mr. Knutson and Mr. Curtis that in seeking an American loan Britain's Labour Government was asking the American people to underwrite the socialisation of Great Britain. The President retorted: "I think that is a perfectly silly conclusion. Great Britain is entitled to the kind of Government that Great Britain wants." That Government is none of our affair so long as we are friendly, he added. The abruptness of the President's comment was interpreted by diplomatic authorities as an effort to reassure the British people and Government about the United States' attitude towards Britain's critical post-war economic problems. At the opening session of a conference expected to continue to midOctober, the British agreed to talk about cartels, Empire trade restrictions and London's control over Empire dollars.