FINANCE WANTED NEXT YEAR

Timaru Herald, Volume CXLVIII, Issue 21822, 27 November 1940, Page 5

FINANCE WANTED NEXT YEAR

British Calls On U.S. Ambassador Sees President By Telegraph—Press Association —Copyright (Received November 26, 6.30 p.m.) WASHINGTON, November 25. Lord Lothian, British Ambassador, after a conference with President Roosevelt, said that Britain hopes next year to procure from the United States aid in the form of ’planes, munitions, ships and finance. The President made no promises of any kind. “I was there to give him a general story of what is happening in England.” Lord Lothian denied the reported /statement of the U.S. Ambassador to London (Mr J. P. Kennedy) that democracy was endangered by the replacement of state socialism. “I have never seen a more democratic country than England to-day. I saw no signs of democratic decline.” Lord Lothian said that the only new order evolving in England consisted in the first place of finding a way of ending the bombing menace to the world and secondly an effort to assure that people were provided with jobs. The German Ministry of Propaganda ordered the press to give prominence to Lord Lothian’s interview with Mr Roosevelt and state that the British Government announced its bankruptcy and could not continue the war owing to shortage of currency. Bombing Affecting Output It is reported from New Orleans that Sir Walter Citrine (General Secretary of the British Trades’ Union Congress) told the American Federation of Labour Convention that Britain needs “ ‘planes, ’planes and more ’planes. Her needs are urgent and extensive.’ Sir Walter drew cheers from the delegates when he declared: “American labour can conquer the Nazis without firing a shot. It may be true that the British Navy is the United States first line of defence. I want you to make the American workshop all democracy’s first line of defence. He pledged Britain to fight until dictatorships were abolished throughout Europe and pleaded that American labour cooperate with the Government in every way in speeding preparations. Sir Walter Citrine told the Convention, “I say to you something no British statesman has yet said. The bombing is affecting our output and speed is the essence of the contract now as never before because our output cannot keep up to full schedule because of the bombing.” British Press Comment “The Times,” discussing Lord Lothian’s statement, says the fact that our pre-war gold and dollar resources may be larger than in 1914 is a very inadequate measure of our continuing ability to finance purchases from the United States on a cash basis. This is exemplified by the sevenfold increase in the cost of aircraft. The resources available for current dollar payments doubtless are still substantial, but the British. Purchasing Commission must work on a definite programme as it is imprudent to enter into commitments now which are likely to be beyond the limit of our resources in 1941-42. The country itself can achieve some extension of the limit by reducing the volume of non-essential imports and expanding exports. “The Daily Mail” says that Lord Lothian's remarks had a chilling effect on the markets to-day. No doubt the fall of France precipitated the present situation. The “Daily Mail” in a leader couples Sir Kingsley Wood’s statement that the war is costing £9,000,000 a day with Lord Lothian’s remarks and suggests that they are reminders that even Britain’s purse is not bottomless and she must seek new ways of financing the most expensive conflict ever waged. The “Daily Telegraph” asks for a frank statement from Britain in order to give the United States due notice of our certain need for credit facilities in 1942, as it is essential that difficulties of payment should not interrupt the flow of necessary war materials. Renewed discussion on credits for Britain followed the disclosures that the United States is considering freezing all belligerent credits in the United States to enable a determination of how and where foreign funds shall be spent. No decision was reached regarding this, but it is understood that freezing of credits will not be permitted to interfere with British war purchases. Senator G. P. Nye moved a resolution for a Senatorial inquiry into the Empire’s financial resources in the United States. Repeal of Aet Discussed After a conference with President Roosevelt, Senator A. W. Barkley expressed the opinion that the question of British credits would not be taken up in the current session of Congress. The Associated Press of America believes that those present at the conference discussed the possible repeal of the Johnson Act. Senator Barkley said: “The conference was concerned chiefly witli projecting on the future and the whole programme for Congress, which is being convened on January 3, was reviewed generally.” The President’s secretary (Mr Stephen Early) said that Mr Roosevelt’s statement in reference to the question of loans and credits to Britain was not discussed by the Government. That statement stood in spite of Lord Lothian’s statement. Other Administration sources indicated that unless Britain’s plight becomes grave and her assets are completely exhausted, the United States will maintain its cash and carry polilcy. Lord Lothian Sees President The British Ambassador to the United States (Lord Lothian) is to confer with President Roosevelt in Washington this evening. Lord Lothian's statement has drawn widespread comment from the United States press. The “New York Times” and “Herald-Tribune” sum up the views by saying that the United States should help Britain and not be prevented by any statutory limitation. In a statement at the opening of the Glasgow War Weapons Week, me Chancellor of the Exchequer (Sir Kingsley Wood) stressed the fact that Britain would continue to buy the best available war material, provided that the more she spent the more she got. It was folly, he said, to throw money away on inferior equipment, and he instanced the way in which this was illustrated in the performance of certain Italian aircraft. The United States Maritime Commission has approved the transfer of eight 5000 tons cargo ships to the British register. They are vessels of the Black Diamond Line, and six will

be taken by the Cunard-White Star Line and two by the Clare Line.

Basic Policy Sought The Secretary of State (Mr Cordell Hull) told a press conference that the whole question of financial aid for Britain would apparently have to be considered by Governmental and Congressional authorities with a view to establishing a basic policy before specific methods were discussed. He indicated that while the question had not yet been actively considered, he expected that it would be considered in the near future. Mr Hull recalled that the World War debt question was considered first by an inter-departmental committee, and then the Congressional leaders were called in. He declined to express an opinion whether assistance might be possible without a revision of the Johnson and Neutrality Acts. He also declined to comment on suggestions that Britain might trade West Indies possessions.