BRITAIN’S LOAN PROBLEMS

Press, Volume LXXXII, Issue 24801, 15 February 1946, Page 5

BRITAIN’S LOAN PROBLEMS

“BALANCED BUDGET BY 1950”

OTTAWA, February 13. A British Treasury official, Sir Wilfred that Britain hoped for a balanced Budget by 1950. Although out of the red on the current account, she would still have heavy arrears of accumulated liabilities to meet.

Sir Wilfred Eady, who heads the delegation which is negotiating a loan from Canada, declined to say how much Britain wanted to borrow. He said that Britain would be compelled to withdraw from the Bretton Woods agreement if the United States Congress rejected the proposed loan to Britain because Britain could not possibly carry heavy international financial obligations while putting her own house in order.

Sir Wilfred Eady pointed out that Britain had not expected to face the peace owing the world £4,750,000,000. It had been estimated that the highest amount of reparations that could be collected from Germany would be 20,000,000 dollars. It was now believed that only half that sum would be recoverable. Actually Britain, America and Canada at present were subsidising Germany and that would continue for at least three years.