U.S. LOAN TO FRANCE

Bay of Plenty Times, Volume LXXIV, Issue 14074, 31 May 1946, Page 3

U.S. LOAN TO FRANCE

NO STRINGS ATTACHED

Paris, May 29

No strings are attached, to a loan of 1,370,000,000 dollars (about £342,500,000 sterling) which America has granted to France, declared the President, M. Felix Gouin, speaking at a Press conference.

He added that France had also applied for’ a £125,000,000 loan from the new International Bank and had been assured of American support for the request.

France was profoundly grateful for this American aid. The Americans’ generous gesture in wiping off the slate the enormous sums owed for wav supplies and the American credits dovetailing into the French five-year reconstruction and modernisation plan would enable France again to become a strong partner in world commerce. France was making an all-out drive, to become one of the largest steel producers in Europe.

“The war has shown that only nations with a powerful steel output can defend their independence,’’ he said. ,

Following 11 weeks of negotiations, the special French representative, M. Leon Blum, and the Secretary to the Treasury, Mr F. M. Vinson have signed a comprehensive economic apid financial agreement under which the United States extends to France the credit to help France to begin her four-year reconstruction programme.

The credit is divided into two sections: Firstly, a direct loan of 050,000,000 dollars from the Export - Import Bank; and, secondly, credit totalling 720,000,000 dollars, which will permit the French to settle their lend-lease account and purchase United States 1 Army and Navy surplus goods in France arid 1 French overseas territories.