AMERICAN LOAN AGREEMENT

Timaru Herald, Volume CLVIII, Issue 23387, 19 December 1945, Page 5

AMERICAN LOAN AGREEMENT

Debate In Lords | Rejection Amendment Withdrawn By Telegraph—N.Z. Press Assn.—Copyright (Rec. 7.30 p.m.) LONDON. Dec. 17. Lord Beaverbrook has withdrawn his amendment for rejection of the American loan agreement, says the Press Association’s Parliamentary correspondent. It is understood that Lord Beaverbrook does net wish to imply that his opposition to the British-American loan agreement is less keen, but the withdrawal of his amendment will enable a straight vote to be taken for or against the agrefment. Opening the debate in the House of Lords, Lord Pethick-Lawrence said that Britain had to make concessions which she would have preferred not to make. The United States regarded the settlement as extremely generous, and had made many important concessions. “If the agreement meant a return to the gold standard I should not be here,” he said. “The agreement related sterling to gold, but there was a degree of flexibility. We have an absolute right at any time to change our parity up or down. We are confronted with two alternatives. The first is to come to an agreement with the United States to build up a new world order and finance trade. The scheme, admittedly, is experimental. With patience and understanding there is a real chance that it can be made to work and where it falls short it can be amended. The second alternative is to wage a financial and economic battle with the United States. “I beg of you to weigh the consequences. Rejection would mean a quarrel with the United States and the end of all co-operation. We should be putting ourselves in an impossible position of isolation. We dare not fail future generations by embarking on such a ruinous course.” “I do not suppose any important international agreement has met with such widespread mistrust,” said Lord Simon. “There can be no harm in saying to America that the likeness of the effort in war is not the same as equal sacrifice. It is no dis-service to British-American friendship to explain why we regard this agreement as a

disappointing adjustment and a hard bargain. Our negotiators sought an agreement which could have given fuller effort to the surprising contrast between our situation at the end of the war and that of America. This is very different from the sort of agreement the negotiators tried to get. Nevertheless. I agree that this House should abstain from rejecting the agreement and bringing about the consequences it would ensure.” Lord Simon expressed concern lest America maintain discriminatory tariffs while exporting in free competition with the Commonwealth. Tariff Adjustments Cheers greeted the assurances of Lord Keynes and Lord Addison that the elimination of preferences throughout Britain required a substantial reduction of tariffs elsewhere. Lord Samuel offered Liberal support for the Government and criticised the Conservatives’ abstention. "If the Americans attach to the loan what appear to us to be mistrustful conditions, let us realise from the

view of the American taxpayer that they wish to be assured that the loan will not be used directly or indirectly to subsidise British export trade in competition with America.” Lord Samuel added that because America realised that the economic collapse of Britain would mean disaster to the United States they had been ready to give assistance. Neither the sterling nr- 'he dollar areas could fully prosper if isolated. The right policy for international co-operation seemed to be embodied in the agreements under consideration. Hour of Disillusion “I feel that this really is an hour of disillusion,” said Lord Woolton. “I am fearful of the name of my country being placed to a bond which we may be unable to honour. I ask the Amerihonour they ought not return to us can people whether in justice and those securities we were compelled to deposit with them in 1940. I do not ask for a loan nor for a gift. I ask for the rightful restitution of what we paid ia advance for what became the common cause.” He believed there was no need for a “cringing policy of appeasement” to America. Lord Croft described the proposals as a Boston Tea Party in reverse. It was interference with the freedom of Britain to manage her own affairs. Lord Strabolgi accused the Conservatives of being eager to wound, but afraid to strike. They wanted the opportunity later, when things were difficult economically, of saying that they were not responsible. He asked the Feers to imagine the effect a rejection of the proposals would have on the ’’'esent ’oscow conference. Lord Pakenham said he believed in the ideal behind the document. Trade barriers on the scale now confronting the world were thoroughly evil things. This was a unique chance to get rid of them. Lord Altrincham said the British case was not properlv put to the American people. The Government could not be absolved from the responsibility. Mi Attlee went to Washington while the negotiations were going on. addressed Congress, but did not refer to the loan. He confined himself Io explaining and defending, not the National, but the Social Party case. Lord Teyuham asked if anv approach had been' made to the Empire for

financial assistance. It might have been possible to devise means whereby Empire raw materials might be traded against a commercial loan. The House adjourned until tomorrow. Mere Vocal Than Voting Opposition to the American loan in the House of Lords will be more vocal than voting, says the political correspondent of the Press Association. Political circles are now reconciled to ,he pro pect of a small anti-Govern-ment vote. Lord Keynes had consultations witn members 'of the Government last night and will be the first speaker for the Government when the debate is resumed. Lord Beaverbrook, though he has withdrawn his motion, has not withdrawn his opposition. He indicated that he will speak and vote against the Government. Some supporters are expected to follow him into the lobby, but they are not expected to be numerous. Most Opposition Peers are expected to go no further than abstension.