BRITAIN’S WAR DEBT

Timaru Herald, Volume CXLV, Issue 21087, 13 July 1938, Page 8

BRITAIN’S WAR DEBT

NEGOTIATIONS WITH U.S.A. LONDON, June 23. The question of a settlement of Britain’s war debt to the United States is under serious consideration, “The Sun” is informed. The United States Ambassador to Britain, Mr Kennedy, discussed the matter with the Chancellor of the Exchequer, Sir John Simon, and others before going to New York, and he will explore it with the United States authorities.

It is considered here to be obviously impossible for Britain to pay off the whole of the £897,000,000 or to pay up fully the interest, including the accrued interest. It is believed that the American Government recognises this, and would accept a reasonable composition.

It is held that a settlement would greatly improve relations between Britain and America, and improve the trade pact atmosphere. The British Government is most anxious to make its aims and policy widely and favourably known in the United States, and propaganda experts consider that this war debt is the outstanding obstacle.

Lord Lloyd, chairman of the British Council, significantly remarked that it would pay Britain to settle the debt as soon as possible.

At a recent informal conference an American representative suggested that the United States might possibly take the West Indies In lieu of payment.

"We would sooner pay the debt,” said the British spokesman. “That’s another way,” replied the American.