Evening star., 1940-12-06
British Finance
Data Given in
73-kinute Talk
VitoI Porley Held
By Morgenthou ond
English OfficiuI
BY BLAIR BOLLES.

Sir Frederick Phillips, Undersec-
retary Of the British Treasury spent
an hour and 13 minutes with Secre-
tary of the Treasury Morgenthau
this morning, outlining British re-
sources and the cost of vital war
supplies for England in the United
States.
Specialists from the State and
Treasury Departments attended the
meeting, believed to be a prelude to
decision by the administration on
the question of arranging credits for
England in the United States.
Sir Frederick said after the meet
ing he had taken the opportln nifty
of finding what particular poins on
the British balance sheet Mr.. Nor
genthau wished him to cover. He
plans to see the Secretary again on
Monday.
Policy Matters Avoided.
The British expert said no uues-
tion Of policy had arisen during
today's conversation. He empha-
sized that the discussion concerned
state of facts"
However, in answer to a oues-
ton he said the facts were directed
toward Illuminating the problem of
British purchases in the United
States and resources available for
those purchases. No mention was
made, Sir Frederick said, of World
War debts and no reference arose
concerning the transfer of British
Island possessions in the new world
to this country in exchange for re-
sources usable in financing British
buying.
The islands question "is outside
my scope altogether" Sir Frederick
said.
Plans Not Disclosed.
The length of Sir Frederick's stay
in Washington and the names of
other persons with whom he will
discuss British financial affairs was
not disclosed.
He said no suggestion had come to
him from Congress that he appear
at the Capitol and added that it
would not enter into his head to
seek discussion with Secretary of
Commerce Jones, the Federal Loan
administrator
He indicated that his schedule OF
conferences with American officials
rested in large part on the sugges-
tions of Merle Cochran of the Treas
ury Department, who was by his
side as he spoke with the press.
The conference in Secretary Nor
genthau's Office was interrupted at
one point by the reporters waiting
in the anteroom.
A secretary was sent by Mr.. Nor
genthau to the newsmen to ask
them to be mere quiet.
G. H. S. Pinsent, financial attache
OF the British Embassy, accom-
panied Sir Frederick to the con-
ference. Undersecretary of the
Treasury. Bell and H. D. White.
Treasury expert, also were present.
Between now and Monday Sir
Frederick said ne would be in touch
with the Secretary of the Treasury.
He said that his last visit. in July,
kept him IN North America three
weeks-one week here, one in New
York and one in Canada. But at
that time the British financial
problem had not been aired, and
his presence in this country caused
little public stir.
Before entering the Treasury. Sir
Frederick told newsmen who asked
about loans that he was not up
to that stage now"
Controversy Aroused.
~The Phillips visit was the climax
today of controversy stirred up
few weeks ago upon the return
to the United States of Lord
Lothian, British Ambassador, when
Lord Lothian said Britain was near
ing the end of its financial re-
sources for purchases in this coun-
try, and might soon need financial,
as well as material, help.
Before the discussions at the
Treasury began. Senator Nye, Re-
publican, of North Dakota an
nounced that he and a group of
colleagues were ready to battle to
the bitter end against any attempt
to extend financial aid to the British.
Senator Nye told newsmen that
this opposition bloc would base its
fight on the contention that loans
to Britain mean actual entry into
war" He predicted that a proposal
for loans would be accompanied by
one for American naval convoy of
British supplies"
AS the financial talks opened, the