Evening star., 1941-01-14
Deal With Britain
For $S50,000,000
Assets Seems Likely
Negotiations With U. S.
Finunciers for Gosh to
Buy Arms Launched
BY the Associated Press.

BY the Associated Press.
A multi-million dollar deal ap-
peared in the making today, with
Britain's fiscal representatives Off
cially disclosed to be negotiating
with two syndicates of investment
trusts for the liquidation of direct"
British investments in the United
States to provide the empire with
cash for war supplies.
Secretary of the Treasury Morgen-
thau, active in bringing the prospec-
tive buyers and sellers together,
conferred with one group of New
York financiers yesterday and ar
ranged to see another delegation
today.
Word that the British government
is ready to do business" was re-
layed by Mr.. Morgenthau from Sir
Frederick Phillips, Undersecretary OF
the British Treasury.
While no estimate was made public
on the value or exact description of
the holdings offered for sale. it was
indicated plainly they included vir-
tually all readily marketable United
States investments held by citizens
and firms Of the United Kingdom,
exclusive of stocks and bonds, which
are being disposed of Systematically
through organized exchanges.
Estimates of Holdings.
The Federal Reserve Board COM
puted recently that direct" British
investments here we're worth ap-
proximately $85O,O0O 900. Other
sources have estimated total British
holdings in the United States, in
cluding securities. at from $4,000
100000 to $1,000 OOO, 900, or even
more.
Direct" investments include huge
holdings of land as well as interests
in or control of factories and similar
industrial establishments.
Proceeds of the war-forced sale
would be used to pay for munitions
already ordered and on which de-
livery is scheduled before Inaugural
ton of the proposed lease-lend pro-
gram of President Roosevelt.
Mr.. Morgenthau talked yesterday
with Cyril Quinn of the Tri-Con-
tinental Corp, New York, and ar
ranged today to see Arthur H.
Bunker, executive vice president of
the Lehman Corp.
Some legislators have demanded
that Britain dispose of all her assets
here before seeking loans. Senator
Wheeler, Democrat, of Montana.
said yesterday that he had been
advised by Harry L. Hopkins last
summer that British assets here
aggregated $4,000 100000 then
Senator Wheeler said these assets
now total at least $1,000, 1000, 900, and
added that Britain should exhaust
her credit before asking any loans.
leased equipment or gifts"
Declines to Discuss Collateral.
Although saying the administra-
ton has no fixed policy" on the
question of requiring the British to
dispose of American investments be-
fore taking advantage of the lease
lend bill in order to obtain NUM-
tions in this country. Secretary
Morgenthau said his actions yester-
day speak louder than any COM
mentS."
He also declined to discuss the
possibility, being studied in some ad-
ministration quarters, of requiring
the British to post as collateral un-
der the lease-lending plan those in
vestments which prove unstable in
the current transactions.
The Secretary said yesterdays
negotiations dealt only with invest
ments held in the United Kingdom,
and did not apply to the rest of the
British Empire, where at least ST.
900 600 900 more American property
is owned.
Conference Described.
Mr.. Morgenthau described his
conference with Mr.. Quinn in these
words:
"One of the representatives Of
some investment trusts came to me
and asked whether the investment
truStS COuld De uSe1ul IN the present
situation to make their facilities
available"
Mr.. Morgenthau then explained
that since the Securities and Ex-
change Commission had supervi-
sion over investment trusts, he asked
Commission Chairman Jerome
Frank to look into the proposal.
Yesterday, he said, he received re-
port that "a very large group of
investment trusts had associated
themselves informally and are
ready to buy any direct invest
ments the United Kingdom may
hold in this country and I so in
formed Sir Frederick Phillips
Mr.. Frank said the s. E. C. was
studying the investment proposals
to assure fair distribution" of the
purchases among the various