CREDITS FOR FRANCE

Greymouth Evening Star, 30 May 1946, Page 7

CREDITS FOR FRANCE

ARRANGEMENT WITH AMERICA

ANNOUNCED RECONSTRUCTION PROGRAMME NEW YORK, May 28. Bringing to a climax 11 weeks of negotiations, M. Leon. Blum and the United States Secretary of the Treasury (Mr Fred Vinson) signed a comprehensive economic and financial agreement under which the United States extends to France a credit of 1,370,000,000 dollars to help her to begin her four years’ reconstruction programme. The credit is divided into two sections: (1) a direct loan of 650,000,000 dollars from the Export-Import Bank; (2) a line of credit totalling 720,000,000 dollars which will permit the French to settle their lend-lease account and purchase United States Army and Navy surplus goods in Franco and French overseas territories.

Two Per Cent. Interest

The larger credit will bear 2 per cent, interest, beginning on July 1, with .interest repayments beginning a year later. Repayments of both interest and principal will begin on July 1, 1951, the payments to be completed in 1981. Part of these payments will consist of 15,000,000 dollars’ worth of real estate, and 10,000,000 dollars’ worth of francs which the United States will use to buy or improve real estate or carry out “educational programmes.” The credit agreements are handled through the United States Government’s Export-Import Bank, and therefore, unlike the British credit, they do not have to be approved by Congress. The United States agrees to pay 17,500,000 dollars to cover claims arising from the operation, disposal, or loss of French vessels under American control. The Associated Press says this presumably includes the loss of the liner Normandie, which was burned in New York harbour. France to Amend Import Policy

The commercial agreement provides that France will not increase tariffs above the pre-war rate and will abandon her pre-war import quota and price equalisation policies. America has agreed to survey the possibility of amending the laws at present restricting imports from France. France has agreed to introduce a film quota system replacing her present restrictions on American films. French cinemas will in future be required to show French films for four weeks in three months, but will be free to show French or imported films the remainder of the time. The United States has promised to grant France an additional credit with which to purchase 750,000 tons of American-owned merchant ships. The terms of the 650,000,000 dollars credit are not stated in the agreement, but officials reported that the rates contemplated were 3 per cent, interest with repayments spread over 20 years after a five years’ interval. The United States has agreed to cancel 1,800,000,000 dollars representing the cost of lend-lease consumed in the war and to sell for 300,000,000 dollars surpluses which cost 1,400,000,000 dollars.