LOAN AGREEMENT

Otago Daily Times, Issue 26025, 13 December 1945, Page 5

LOAN AGREEMENT

BRITISH PRESS COMMENT AUSTERITY TO CONTINUE (Rec. 9 p.m.) LONDON, Dec. 12. The proposed repayment to the United States of £35,000,000 a year for naif a century is frankly a concession to “ the business principles of the American Congress/’ and is no more likely to run its full course unaltered than the elaborate schedules of the Dawes and Young plans, says The Times in an editorial on the American loan. Nor is there any kind of assurance either that the dollars granted on these terms will suffice to bridge the immediate inescapable gap or that the enforced attempt to introduce converitable currencies and multilateral trading will not break down entirely. Austerity in any event must plainly continue in Britain. Nothing could more clearly demonstrate the shortsightedness of the Opposition’s criticism of “ Cripps’s strength through misery ” policies. The Times, after commenting on Lord Keynes’s optimism, quotes the scepticism expressed in a letter to The Times from Sir Hubert Henderson, Oxford professor of political economy, who says: “We undertake not to restrict cur imports of any commodity from the United States unless we curtail proportionately our imports from Commonwealth and other countries. Britain in return for tariff adjustments by America is expected to eliminate Imperial preference.” The leader continues: "Thus Britain, even while the direct effects of the war are Still being fully felt, will give up its biggest tool for the reconstruction of its trade-r-its buying power. II Congress is disposed to tighten up the terms of the loan, as may still be the case, it would be quite impossible to make the attempt.” The Press Association’s political correspondent says more surprise moves have developed over the American loan to Britain and the Bretton Woods monetary plan, which are to be debated in the House of Commons to-morrow. Mr Churchill summoned a meeting of the Conservative “ shadow Cabinet ” in his private room in the House of Commons. There were several informal meetings of Government supporters during the day, at which the Government spokesman explained the Government’s views on the proposed agreements