AID FOR BRITAIN

Wanganui Chronicle, Volume 89, Issue 214, 10 September 1945, Page 5

AID FOR BRITAIN

TALKS WITH AMERICA SEEKING SOME FORMULA FOR CREDITS ( HINA LOAN I KGED AS SUITABLE METHOD. Rood. 11 p.m. Washington, Sept. 8. Some form of credits to Britain, to assist during the transition period after the end of Lend-Lease are being considered, in view of the meetings next week between British and Ameriican financial experts, who are seeking ; a formula for. American aid, says the 1 New York Times correspondent in ' Washington. i If a formula is evolved the credits. . presumably, would be extended through the Export and Import Bank, or other Government agency. The I Bretton Woods fund will not be used [ because it will not bo operating for a I year, and prompt action will be necessary. One suggestion under consideration is that the formula for China’s 5001000,000 dollars Joan, approved by Con■gress, should be repeated for Britain. | Under the terms of this loan China I was given a period of grace, after i which the interest charges were fixed, in the light of China’s financial condl|tion at that time. The reduction of I the principal was to be open to negotiation, if China’s financial condition ! warranted. It is argued that such a .formula, applied to Britain, would relieve British anxiety regarding the in- ; terest rate for the time being, and also i the fear that she might be unable to repay the full loan at maturity thus becoming a defaulter. Lord Keynes (Britain’s financial adviser) has arrived from Canada. Lord Halifax (British Ambassador to United States) is due in Washington on Monday. They will lead the British delegation, which is conferring with United States financial experts, among them the Secretary of the Treasury, Mr. Vinson. Th? talks are expected to occupy a fortnight. Washington appears to have ruled out the making of a grant to Britain, who is anxious regarding her national debt and does not want a loan, even at nominal interest. Presumably, a solution will be found between the two.