BLOW AT U.S. LOAN

Gisborne Herald, Volume LXXIII, Issue 22011, 3 May 1946, Page 3

BLOW AT U.S. LOAN

AMERICAN SENATOR CRITICISM OF BRITAIN CREDIT A “BAD RISK” WASHINGTON, May 1. Senator R. M. La Follette delivered what is generally regarded as the hardest blow yet struck against the loan to Britain when he asserted, in a carefully documented speech, that the British Empire trading system was crumbling and also that Britain was a bad risk and that the loan would create bad feeling between the two nations. Senator La Follette described the agreement as a strange combination of philanthropy, commercial lending, and a surprise packet of verbal ambiguity. •‘lt has an alternative set of labels.” he said. “The British Parliament dealt with the loan under the label of a gift. It is being peddled in Congress under the label of a loan. When the package is opened and the people of both countries discover that it is not what they supposed, there can be only one reaction —disappointment and resentment.”

Senator La Follette said that he considered if aid had to be given to Britain —lie was not convinced that it did—it should be given either on the basis of an oulright gift or as a regularised loan by some Federal lending agency. He discussed the competition of the Australian wool textile industry with British woollens and also the diversion of New Zealand and South African trade. He thought there were numerous “sleeper” provisions in the loan agreement, which gave no assurance that Britain would do in the way of reciprocal trade what she appeared to be agreeing to do.