U.S.A. AID FOR BRITAIN

Greymouth Evening Star, 9 December 1940, Page 8

U.S.A. AID FOR BRITAIN

FINANCIAL EXPERTS CONFER NO LOAN ASKED FOR [BY CABLEHrERESS ASSN.-COPYRIGHT.] WASHINGTON, December 6, Sir Frederick Phillips, British envoy, has announced he is preparing a balance sheet of Britain’s finances for Mr. Morgenthau, U.S.A. Treasurer. He previously conferred with Mr. Morgenthau and other experts. He stated they discussed the state of Britain’s resources, the cost of supplies. He denied he had asked for a loan. Sir . F. Phillips said: “His talk was limited to a statement of facts, and not of policy. It covered the question of British : war purchases in the United States, also the cost of future war supplies. We did not mention war debts. The sale of British possessions' is ..outside my scope. My balance sheet stresses particular points that Mr. Morgenthau is anxious to explore.” Mr.- Merle Cochran, Director of the U.S. Treasury’s Stabilisation Fund, attended the conference, and also the Under-Secretary to the Treasury, Mr Bell, and the Financial Counsellor of the British Embassy. The next meeting is expected on Monday. Mr. Cochran’s presence strengthens the belief that the United States may draw on its two thousand million dollar stabilisation fund if financial aid to Britain is decided on. There is unofficial talk that stabilisation fund manoeuvres in relation to Argentina may indirectly help Britain by enabling Argentina to 'send supplies of food to Britain.

LOANS TO DOMINIONS. (Recd. December 9, 11.15 a.m.) LONDON, December 8. The Commercial Summary states: Lord Lothian’s statement succeeded in its primary aim, of giving the subject of American financial aid a thorough airing on both sides of the Atlantic. Quarters in close touch with the Bank of England remain emphatic that urgent need does not exist at present, but stress the desirability of timely preparations. Authoritative circles give credence to Washington reports that important moves for the extension of credits have begun. Some circles forecast early developments, partly because American readiness to grant financial support would greatly influence the attitude of several neutral governments. One plausible theory currently advanced is that the difficulty created by the Johnson Act will be short-cir-cuited by lending, not to the United Kingdom, but to the gold-producing Dominions. As Australia, Canada, and South Africa have not war debts owing to the United States, they are qualified to borrow, despite existing legislation, and could either lend the money to the United Kingdom, or repurchase their own loans issued in London.

The “Financial News” says that the. result of such a transaction, on balance, would be a reduction in the Dominions’ net indebtedness to the United Kingdom, and a corresponding increase to the United States. Many bankers are of the opinion that America will eventually lend direct to Britain, without resort to subterfuge. This might be immediately helpful by accepting delivery in South Africa, where it is estimated that 150 to 200 millions in gold is earmarked for the British account. AID URGENTLY NEEDED LONDON, December 7. The “Daily Mail” has appealed, in an editorial, for a relaxation of the British naval censorship in an effort to bring home to the United States that there is an urgent necessity for American naval aid for Britain. The “Daily’Mail” claimed that Britain is endangered at sea on account of the. U-boat attacks on the convoys. The editorial says: “Only when‘ the American people become fully alive: to our peril at sea shall we get from the United States the full assistance, in merchantmen and in naval craft that she is able to give.” COL. DONOVAN’S MISSION. WASHINGTON, December 7. ’ A spokesman of the United States Navy declined to comment on the report that Colonel William Donovan is going to Europe, by the Clipper, on a confidential mission for the American Government. Colonel Donovan has only recently returned frcm a confidential mission to England. At present it is reported that Colonel Donovan is going to the Near East in order, unofficially, to inspect the British forces, or, alternatively, on a visit to General Weygand.

WOOL SUPPLIES. WASHINGTON, December 7. The Defence Supplies Corporation has extended to noon, December 23, the time by which proposals can be received for the storage of Australian wool. It also has requested proposals' for the storage of double the dumped bales. Army purchases in recent months resulted in a 32 per cent, increase in the consumption of wool over the normal civilian demand according to the Textile Economics Bureau. ADDITIONS TO NAVY WASHINGTON, December 6. The National Defence Commission, has revealed that new fighting ships, are being commissioned in the Navy at the rate of one every 12 days. The commission said the acceleration of the programme had reduced the period of 40 months normally needed to complete cruisers to 35 months in some instances. The construction period of submarines had been reduced from 30 to 24 months and destroyers were being launched three months ahead of schedule. Meanwhile, additional naval shipyards are under construction with an authorisation of 150,000,000 dollars. The Secretary of the Navy (Colonel Knox) has asked Congress to authorise 300,000,000 dollars worth of alterations to naval vessels to afford greater protection against air attacks. He emphasised that the type and nature of the protective work must be secret. I

DUKE OF WINDSOR NEW YORK, December 7. The Duke of Windsor, in a radio address, expressed gratitude to -the “open-hearted” people of the United

States Red Cross for all they were doing for the British people. He spoke extemporaneously from Nassau on Ripley’s “Believe It or Not” programme. On the Columbia system he also .paid a tribute to the merchant marine, particularly to two British sailors who spent 71 days at sea in an open boat after being torpedoed. The sailors broadcast their experiences. The Duke and Duchess of Windsor were guests at the studio. The Duke was deeply moved by the men’s experiences, and consented to go on the air. BOMB FOR HITLER NEW YORK, December 6. A message/from Girard, in Kansas, stated that Halderman Julius, a book publisher, has written Mr. Churchill as follows: “I offer to pay the cost of a half-ton bomb plus petrol, if you assign a competent pilot to drop it on the chief butcher’s Berchtesgaden habitat, the scene of Hitler’s conspiracies against civilisation.”

FOOD SUPPLIES NEW YORK, December 8. Mr. Herbert Hoover, as Chairman of “The National Committee of Food for Five Small ‘ Democracies,” hopes to inspire action to prevent famine in Finland, Norway, Holland, Belgium, and Central Poland. On the contrary, a group of 25 prominent women in a statement said: “America’s own security would be endangered by any action facilitating Herr Hitler’s control over subjugated areas.” LOAN TO SPAIN. WASHINGTON, December 7. The United States Secretary of State (Mr. Cordell Hull) has confirmed the, report that the United States is negotiating with Spain about a loan of 100,000,000 dollars, but he emphasised that no agreement had yet been reached. Private observers understand that the credits would be used to finance large-scale Spanish imports of food and raw materials, provided that Spain was willing not to re-export to Germany or Italy.