AMERICAN AID

Evening Star, Issue 23744, 27 November 1940, Page 8

AMERICAN AID

THE FINANCIAL SIDE BRITAIN'S PURSE NOT BOTTOMLESS FRANK STATEMENT URGED Press Association—By Telegraph—Copyright LONDON, November 25. ‘The Times,’ discussing Lord. Lothian’s remarks, says: “ The fact that our pre-war gold dollar resources may be larger than in 1914 is a very inadequate measure of our continuing ability to finance purchases from the United States on a cash basis. This is exemplified by a sevenfold increase in the cost of aircraft. The resources available for current dollar payments are doubtless still substantial, but the British Purchasing Commission must work on a definite programme, as it would bo imprudent to enter into commitments now which are likely to be beyond the limit of our resources in 1941-42. The country itself can achieve some extension of the limit by reducing the volume of non-essential imports and expanding exports.” The ‘ Daily Mail ’ says: “ Lord Lothian’s remarks had a chilling effect on the markets to-day. - No doubt the fall of France precipitated the present situation.” The ‘ Daily Mail ’ in a leader couples Sir Kingsley Wood’s statement that the war is costing £9,000,000 a day with Lord Lothian’s remarks, and suggests that they are reminders that even Britain’s purse is not bottomless and that she must seek new ways of financing the most expensive conflict ever fought. . The ‘ Daily Telegraph ’ asks for a frank statement from Britain in order to give the United States due notice of our certain need for credit facilities in 1942, as it is essential that the difficulties of payment should not interrupt the flow of necessary war materials.