LOAN FOR BRITAIN

Otago Daily Times, Issue 26200, 10 July 1946, Page 5

LOAN FOR BRITAIN

ESSENTIAL TO PEACE PRESIDENT’S MESSAGE OPENING OF THE DEBATE WASHINGTON, July 8. President Truman, in a letter to Mr B. Spence, chairman of the House Banking Committee, said that if the British loan were not granted it would be difficult, if not impossible, to proceed with the United Nations’ programme for international economic cooperation. He added that economic conflict between Britain and the United States would be disastrous to the wellbeing of both countries, and to the peace and security of the entire world. The Secretary of State, Mr J. ’F. Byrnes, in a cable message to Mr Spence, urging Congressional approval of the loan, said the British financial agreement would be a powerful instrument in returning to normal healthy trade between nations. He added that the foundations of peace could never be secure if they rested exclusively on a political base. If the nations waged economic warfare through discriminatory trade practices and economic blocs international trade would languish and the standard of living would decline. Irritations would develop and there would be no peace. The British loan was the first essential step towards peace. “If we are side-tracked by other problems or hinge assistance to Britain on other considerations, there is a good chance that our efforts to secure world trade expansion may fail,” Mr Byrnes said. The fate of the loan will be decided this week in the House or Representatives. The debate began to-day. The House defeated by 181 votes to 67 efforts to block consideration. The Associated Press points out that this has not furnished an adequate measurement of the Opposition’s strength, as the anti-loan forces were split on the question of blocking consideration. Representative H. Buffett (Republican, Nebraska) said: “The House will serve America’s future best by decisively defeating this gift loan. It is a false notion that our Government must or should try to buy the military support of other countries. Trie money would be used to extend Socialism and State ownership. World War I established Communism, and World War II expanded it. This loan may both bring on World War 111 and result in a world triumph for Communism.” Representative L. Allen (Republican, Illinois) said the loan would not be diplomatically wise unless other nations were given loans. Representative A. J. Sabath (Democrat, Illinois) said that Britain had never done anything for the United States, while America had saved her twice. He added that the loan would be against the best interests of the United States, and would compete against her own commerce.

Representative H. W. Smith (Democrat, Virginia) said: “Do not measure this thing in dollars. Measure it in blood and terms of peace.” He reminded the House that the Secretary of the Treasury, Mr F. M. Vinson, had never sold the United States “ down the river,” and in negotiating this loan he acted not for Britain but for the United States.

Representative Smith declared: “If we are going to have foreign trade we must break the sterling bloc. This agreement will do it.” He added* that if Mr Churchill had not been standing there in those dark days early in the war many more American boys would have lost their lives.