U.S. LOAN TO BRITAIN

Press, Volume LXXXII, Issue 24799, 13 February 1946, Page 7

U.S. LOAN TO BRITAIN

VIEWS OF MR BYRNES

“ELIMINATION OF TRADE PREFERENCES” (N.Z. Press Association—Copyright)

8.30) WASHINGTON, Feb. 11. The projected loan to Britain would FT ro -Y 1 l e c4 ta P gible ’ firm sains for the United States and the rest of the world by a chance for expanding world trade and the opportunity for foods and money to flow where they might tor a prosperous world instead of a lean worl<L said the United States Secretary of State (Mr J. F. Byrnes), adtion SSmg the Foreign poli cy Associa-

• Byrnes said he believed the most significant American benefits would t h * e ? ledge to support United States trade goals contained in the British White Paper, which called for a collective assault by the United Nations on all trade barriers to promote a freer flow of goods in world commerce. By this commitment the British took their place at America’s side as economic allies, not as economic enemies. I* Congress approved the loan the United States could expect, first, a general reduction in tariffs and the elimination of trade preferences; second, fewer quotas, embargoes, and Government subsidies: third, the loosing of the grip of cartels and combines upon world commerce: and fourth, the progressive Elimination of export restrictions and price-fixing arrangements. Mr Byrnes denied that the British loan would require the United States to extend loans to other governments. Objections Answered Mr Byrnes said he frequently heard two objections. The first was that the loan would contribute to inflation in: the United States. The second was that the loan would not be repaid. Referring to the first objection, he said Britain would draw gradually on the funds and not spend them for scarce consumer goods, but for food and basic raw materials, some of which were in surplus supply in the United States. Discussing the second, he said the circumstances were entirely different from those of the war loan of the first world war. That loan was bigger, and the interest was higher. It was incurred for materials used up during the war, and the British were forced to attempt payment in the face of three successive American tariff increases. Even then Britain made payments until the depths of the depression. This time the United States and other nations were taking active steps to prevent a repetition of the depression. If those efforts failed they would lose much greater values than instalments on the credit to Britain.