Evening star., 1940-12-11
Action on Loan
For Britain Up
ToPresident
He Must Decide If
Congress Is to Get
Request, Jones Says
b. tIs Associated Press.

OCClC VI OOilSo
dicated today that decision on the
question of financial aid to Great
Britain now awaited the return Of
President Roosevelt to Washington.
Asked at press conference
whether a loan to Great Britain was
imminent, the Secretary said the
matter would have to 60 to Congress,
and the question of asking congress
sional approval could not be decided
at the moment because "the admin
istration is away" the reference
being to the current cruise of Presi-
dent Roosevelt in the Caribbean.
do you think something will
happen when the administration gets
back?" the Secretary was asked.
Something usually does happen
when he comes here" Mr.. Jones re-
piled with smile.
British Finances Studied.
Mr.. Jones was one of the high
administration officials who met at
the Treasury yesterday for a secret
report on British financial informa.
ton brought to this country by Sir
Frederick Phillips, undersecretary
Of the British treasury.
He declined, however, to discuss
the meeting or any part of the Phil
lips information.
Disposing of recurrent reports
that the Reconstruction Finance
Corp. had authority to lend money
to Great Britain without new legis-
lation, Mr.. Jones for the first time
said fatty that no loan could be
made without congressional ap-
proval. The Neutrality Act, he ex-
planned, would prevent it.
Expectations were that the British
financial data would go to the White
House some time next week shortly
after Mr.. Roosevelt returns from his
cruise in the Caribbean.
Officials Get Data.
Much, if not all, of this material
was placed before the special meet
ing of key administration officials
yesterday.
Mr.. Morgenthau explained later
that he was bringing his colleagues
up to date on the information
which We have obtained from Sir
Frederick Phillips"
Sir Frederick worked over the
week end preparing balance sheet
OF British resources and war costs,
and the belief was that he turned it
over to Mr.. Morgenthau during their
two-hour conference Monday night
! Although the broad picture of
Britain's status is ready for White
| House consideration, informed of
f1cials did not rule out the probable
ity of further talks between Mr..
Morgenthau and Sir Frederick. They
said, however, that the two conver-
sations the men already have held
were sufficient for a thorough ex-
ploration of all basic facts.
What British Will Need.
One source said that the talks
might be described generally as
follows:
They were not concerned with how
large loan Britain might welcome,
or what collateral she could offer.
They were concerned rather with
bringing out the degree of financial
assistance the British would need
in the future at the present rate
Of war expenditures and how soon
that date would be reached.
The British, it was said, realize
that at the present rate of spending
they eventually will reach the bot
tom of their financial barrel, and
hence seek some assurance that aid
can be counted on.
Some administration officials, who
privately believe aid should be ex-
tended in that extremity, said never
thedess they believed that loans
should be held off until Britain had
dug much deeper into her present
assets. They did not favor any
transaction that would enable
Britain to conserve the bulk of her
remaining financial reserves by post
ing them as collateral against dollar
credits.
World War Experience Cited.
In expressing these views, they
mentioned Britain's default on
World War obligations to the United
States as one factor which made
them averse to the idea of imme-
diate loans or credits.
Besides Mr.. Morgenthau and Mr..
Jones, Secretary of War Stimson also
attended the conference. The Navy
was represented by Undersecretary
James v. Forrestal, the State De-
partment by Undersecretary Sum-
ner Welles and the Defense Com
mission by William S. Knudsen.
Others there included Gen. George
c. Marshall, Army chief of staff;
Robert P. Patterson. Assistant Secre-
tary of War; Herbert Feis, economic
adviser to the State Department;
Merle Cochran. director of the
Treasury's stabilization fund; Daniel
w. Bell, Undersecrteary of the
Treasury; Harry D. White, director
Of monetary research at the Treas.