BRITISH DOLLAR ASSETS

Evening Star, Issue 23880, 9 May 1941, Page 8

BRITISH DOLLAR ASSETS

PLAN TO FORESTALL LIQUIDATION WASHINGTON, May 8. (Received May 9, at 11.15 a.m.) Mr Jesse Jones, Federal Loan Administrator, asked Congress to pass legislation permitting the Reconstruction Finance Corporation to lend money to the British Government 1 against holdings in the United States, increasing the corporation’s borrowing power by 1,500,(XX),000 dollars, authorising the creation of additional corporations to engage in varied activities, such as financing pilots while being trained, and laying down Government-owned external air lines, as to Latin America. Mr Jones explained that the proposed Bill would enable him to forestall liquidation of British holdings of American securities and British investments at distress prices. The desire for Britain to retain ownership of some holdings here while using the collaterals to pay for armaments was indicated last month when the R.F.C. authorised a loan of 40,000,000 dollars to the Brown and Williamson Tobacco Company, which is wholly owned by the British and American Tobacco Company.