BRITISH RESOURCES

Timaru Herald, Volume CXLVIII, Issue 21821, 26 November 1940, Page 5

BRITISH RESOURCES

Statement Cleared Up U.S. Securities Not Unlimited By Telegraph—Press Association—Copyright (Received November 25, 6.30 pm.) LONDON, November 24. It is likely that questions will be asked hi the House of Commons concerning the statement made by Lord Lothian that Great Britain would be In urgent need of finance in 1941. Lord Lothian’s references to Britain’s financial position are said to be only an expression of his appreciation of the all-in policy which Britain has adopted to turn her resources into aeroplanes, guns, and other weapons for the maintenance of the war. His references dealt only with liquid assets at present available, and it is pointed out that Lord Lothian is aware of the great resources Britain has in all parts of the world. President Roosevelt, who will return to Washington to-morrow, is expected to have a consultation with the British Ambassador (Lord Lothian) in the early part of this week. British Paper’s Criticism Tire “Sunday Dispatch" says that it communicated with the Ministry of Information about the reference In Lord Lothian’s reported statement that Britain was beginning to come to the end of her financial resources. Some hours later a statement was issued pointing out that the financial resources which the Ambassador said were coming to an end are “the available gold and securities,” as he had made clear. The “Sunday Dispatch” proceeds: “Britain has to pay cash in advance for all the munitions sold by the United States. Tills arrangement no business concern, even the most flourishing, could carry on indefinitely; but Lord Lothian chose to launch this extraordinary phrase on the world when the very greatest issues are being settled in the Balkans. “The phrase will chill the Greeks, dismay Turkey, and be seized by German propagandists. It will be clear to all who understand the position that Lord Lothian intended to refer to our dollar resources, but the phrase, without that important reservation, was cabled throughout the world.” On his return to the United States by air from Britain, the British Ambassador (Lord Lothian) said at New York: “Britain’s financial problem is urgent. If we are to get through 1941, which we believe will be a tough year, something will have to be done about finances.” Resources Not Unlimited Lord Lothian’s statement has been quickly seized on by Axis propagandists; but it should be borne in mind that all that Britain gets from the United States is paid for in cash or by securities. From time to time the British Government has mobilised securities held in the United States, but the total is obviously not unlimited. When these securities are exhausted it will not mean that Britain is “broke,” but only that her credits in the United States are exhausted. British investments in South America alone total hundreds of mil-

lions, and there are big holdings elsewhere. The premature jubilation of the Axis at the Ambassador’s statement is significant in view of the immediate plundering of every occupied country by Germany. Hamilton Fish in a radio broadcast said that Mr Roosevelt had neither the will not the ability to keep the United States out of war. He urged the United States to take over British and French islands in the western hemisphere for the cancellation of World War debts. Credits should be extended only after British resources had been exhausted. He added that he would not attempt to say what form assistance should take, but that munitions, ships, and financial aid were the three things Britain most needed. Lord Lothian’s statement is given prominence in the New York newspapers, and various unofficial suggestions are made for giving help to Britain. It has been noted in the United States that Lord Lothiqn’s statement of Britain’s needs does not include man power.