Evening star., 1945-12-06

would nave meant further tight
ening Of belts, general imposition
Of restrictions to avoid a call for
dollars and period OF intensive
trade rivalry"
London newspapers said the
agreement provided that of the
total amount Of the loan $65O,O0O 900
would be used in payment for goods
in process of delivery to Britain
when leaSe-lend was ended. The
papers, quoting their Washington
correspondents, said the loan itself
SO, ,750,0 ,000000-and the s65O,000
900 lease-lend aid settlement would
be repaid on precisely the same
terms.
The dispatch to the Daily Herald
said acceptance by the British of the
Breton Woods monetary plan was
a condition of the loan, and that
the United States Congress will be
kept in session to ratify the loan
simultaneously with the passagefof
the Breton Woods bill by Parlia-
ment"
Announcement of the agreement
came after concern had been ex-
pressed in official circles here over
progress of negotiations. When it
had been reported that negotiations
were on the brink of complete
breakdown, the dispatches said, Sir,
Edward Bridges, permanent Secre-
tary of the Treasury, was rushed
from London to Washington by
plane on three hours notice.
The Daily Mail, saying the word
"go" had been given to world trade
by the agreement, added that the
detailed document listing the terms
included provision that Britain
work toward a reduction of the
sterling debt and dissolution of the
dollar pool. The Mail said also that
one condition was that Britain Join
with the United States in a long
range plan to reduce tariffs and
eliminate quotas and restrictions on
world trade.
The agreement means that the
door Is flung wide open for world
trade" the newspaper said. Dis
agreement would have split the
world into dollar and sterling blocs,
with austerity in Britain for years
to4come.
Concessions Granted.
Much more stringent terms had
been offered by the Americans, but
the ,vigor with which the British
case was presented, particularly in
the past few days, won important
concessions"
The Daily Herald, Labor party
organ, said the agreement would
anot prevent an expansion of trade
within the commonwealth, but will
enable the dominions to make i'm
mediate essential purchases in the
United States"
THE Sketch commented that what
the Americans are really lending us
Is new houses, new factories, new
machinery and equipment"
British and American officials
have disclosed at Washington during
the course of negotiations that con-
ferees agreed on a provision per-
mitting Britain to waive interest
payments In depression years If the
Breton Woods monetary fund cer-
titled that Britain's balance of pay
ments did not permit her to pay the
obligations.
Up to Wednesday talks with the
British officials, headed by British
Ambassador Lord Halifax, had last
ed 86 days.
One of the provisions previously
reported as agreed on early in the
conversations was that Britain need
not pay any interest or principal for
five years after the loan went into
effect, or until 1851.
Fund to Be Set Up.
American officials said they agreed
to this since they realized Britain
would need that long to reconvert
her economy from war to peace and
begin earning money by exports.
The major share of the credit
Britain was seeking would be placed
in fund in the United States where
the British could draw on it when
they needed 1t, it was earlier re-
ported at washington.
American officials early in the
discussion made it clear to the
British that the United States could
charge no less than 2 per cent in
terest on the loan.
They adopted this attitude for
fear Congress would reject any
lower interest charge since it cost
the United States Government about
Q per cent to borrow the money
from taxpayers.
i ATHENS, Dec. 6 (P.-An authori-
tative source said today that Greece
is seeking loan OF $46,S00, 900 from
Great Britain and the release of
part Of her reserve funds now
held by British banks, with the in
tention of using the entire amount
to help stabilize the drachma.