LOAN FROM AMERICA

Manawatu Standard, Volume LXI, Issue 198, 23 July 1941, Page 7

LOAN FROM AMERICA

£106,250,000 FOR BRITAIN. PAYMENT FOR SUPPLIES. * LONDON, July 22. The Chancellor of the Ex- - chequer (Sir King-ley Wood) an- > nouncccl in the House of Com--1 mons, to-day, that the TJnit--3 ed States is lending- Britain 3 425,000,000 dollars—£lo6,2so,ooo ■| —to help to pay for supplies advanced by America before the lease or lend legislation was - passed. The loan is welcomed in London as ’ a new sign of the close co-operation ' between the two Democracies. | The loan will bear interest at 3 per cent, and will be for a term of 15 years. It may be extended lor a fur- , ther five years if two-thirds of the ' capital has been repaid by that time , The transaction was authorised by the Reconstruction Finance Corpora-1 ’ tion, in AVashington. SHARES - PLEDGED COLLATERAL SECURITY. ]!(Ree. 10 a.m.) RUGBY, July 23., | The Chancellor of the Exchequer ' j (Sir Kingsley Wood), informing the, , I House of Commons that, with the ap-| ' proval of President Roosevelt, the I American Reconstruction Finance Cor- ] I poration had authorised the loan to! j the British Government of 425.000,000 j I dollars, said that as collateral security! shares representing direct investments | and certain marketable securities, in-' eluding those of British-owned insur- ! ance companies in. the United States, | were pledged. It was emphasised that] there would be no change in the con-j trol or management of these direct investments, including insurance com-j panics. | I The Chancellor read to the House 1 ( the announcement of this loan, which ] is being made in the United States ( to-day. According to this announce-;, ment .the present value of the eollatoral security is about 500.000.000 dol- j lars, in addition to the earnings of j f the branches of 41 British insurance! companies not incorporated in the 1 ; United States which will be assigned . ) |to the Reconstruction Finance Corporation.—Official Wireless. i EAR-REACHING PLAN. J AUSTRALIAN-US. TRADE. ' CANBERRA, July 22. J An official Commonwealth delegation ! e will leave Australia lor the United jl States soon lor important discussions | which, it is understood, .may aff.ct the j trade structure o; Brit,*..., Australia, jand the United Slates, and to some , extent Canada. s It is believed that the proposals toL be discussed will include, first, the j direct supply to Britain by the United \ States of primary products which Ails- < tralia can no longer export to Brit- e ain because of shipping difficulties; g secondly, the export of Australian L, primary produce to the United States .. to make up these deficiencies; thirdly. 1 tarifT concessions by Australia to the United States and the revision of the import licensing system adopted by n Australia to conserve dollar exchange, v A complete re-orientation of trade n relations between Australia and the t United States is felt by both countries c to be the logical sequel of the lease or d lend legislation. An indication has :l been given that America is anxious c for a reciprocal trade agreement, at s least for the duration of the war. It 1 ! is understood that the United States h has asked for more-favoured treatment e of certain products under the Australian tariff in view of the benefits which will accrue to Australia under the Lend or Lease Act. Canada will he o interested in the proposed trade scheme « as it will almost certainly mean a ® modification of the Ottawa Agreement. .