CREDITS FOR BRITAIN

Evening Post, Volume CXL, Issue 61, 10 September 1945, Page 5

CREDITS FOR BRITAIN

U.S. STUDIES PROBLEM

WASHINGTON, September. 8. Some form of credits to Britain to assist during the transition period after the end of lend-lease is being considered, in view of the meetings next week between the British and American financial experts, who are seeking: a formula for American aid, says the "New York Times" correspondent in Washington. If a formula is evolved, credits presumably would be extended through the Export and Import Bank, or some other Government agency.

The Bretton Woods fund will not be used, because it will not be operating for a year and prompt action is necessary. One suggestion under consideration is that the formula for China's 500,----000.000-dollar loan, which has been approved by Congress, should be repeated for Britain. Under the terms of this loan, China was given a period of arace, after which interest charges were fixed in the light of China's financial condition at that time. Reduction of the principal was to be open to negotiation if China's financial condition warranted.

It Js argued that such a formula, if applied to Britain, would relieve British anxiety regarding the interest rate for the time being and also the fear that she might be unable to repay the full loan at maturity. Lord Keynes has arrived from Canada and Lord Halifax is due iix Washington on Monday. They will lead the British delegation which is conferring with Messrs. Clayton, Vinson. and Wallace. The talks are expected to occupy a fortnight. Washington appears to have ruled out making a grant to Britain, who is anxious regarding her national debt and does not want a loan, even at nominal interest. Presumably a solution will be found. A message from Ottawa says that the Minister of Finance, Mr. J. L. Ilsley. told the House of Commons that recent discussions with Lord Keynes indicated that in spite of the end of the mutual aid plan, Britain and the sterling area, for the next few months, would be able to pay Canadian dollars Cor goods received.