Detroit evening times., 1945-12-12

BY Paul
Malfon
WASHINGTON, Dec. Il - A
W few Of the hravest ad-
miniStration congressman said
God loves everyone and the
British loan agreement is a good
one, Immediately after it was
announced.
The suspicious or knowing
congressman roundly denounced
il.
But the bulk ducked and ran
when they saw newSmen coming
10 seek comment. These de-
tccted high aroma of un-
popularity about the whole
affair waited in the first puff Of
the news from the state depart
ment.
What they knew, they did not
like. And the deeper they went
into il. the less they liked it.
II was so bad few wanted to be
connected with il one way or
another.
INDEED it's sponsors, in the
sacred halls OF the depart
ment. were not eager 10 cham
pion the success OF their negoti-
atoms in Congress. They rather
made plain they would welcome
a delay AT least until parliament
has acted on the Breton Woods
agreement, and would not press
for approval until after the
Christmas holidays.
II Britain turns down Breton
Woods, our SenSat onal y
modest official enthusiasm for
this thing, will be revised down.
ward.
We are 10 lend Britain far
more than her whole Cancelled
first World War debt. The
amount to be advanced is
S3.75O.OOO, 900. while the old
war debt still owed is S2,33l,-
100000, less than two-thirdS as
much.
The only way we can raise
this money is by borrowing
from our people. The interest
charge to us is not less than
29s per cent. The loan 10 the
British carries only 2 per cent.
But we must pay. our people
interest from the date of the
loan.
For the British, interest will
not start until FIVE years, at
least so the publicity said.
Actually her interest payments
will not start until five years
after Dec. 81, 1916 more than
SIX years hence.
pRITAIN can use this money
- any way she chooses. The
publicity put stress upon her
likelihood Of buying American
products. This Is but one pur-
pose among many specified
Simultaneous announcement
was made by Mr.. Attlee 10
Parliament that, of course, he
was going ahead with the
Specialization of Britain. To
buy coal mines, utilities and
other businesses, he Will issue
bonds TO his people. but not
delayed action bonds. No one
can give me offhand the cost
of British Specialization. hut II
will be certainly $3.50, 900, 900
added TO British eXchequer
obligations.
The use of our money 70 pro-
teCt the British financial posi-
ton permits the socialist eX-
pertinent. Otherwise that added
debt could not he carried. ludG-
ing from the official British
statements Of her financial
plight.
DIT on our loan. we get moth
~ inc for five years (what viii
happen in this atomic age by
then7) while Britain can draw
the money as she wants il.
This IS. strangely enough. tho
best feature OF the deal. II
gets worse from here on Tho
lend-leaSe deal is almost unbe-
lieVahle. Britain owes us about
S25.00O.OOO. 900 under what Mr..
Roosevelt deceptively calle d
'lend-leaSe."
Now il is officially said this
money and goods were neither
loaned nor leased. Mr.. RooSe-
welt had a provision for repay
ment in kind. so We could at
least get some of our equipment
back for use or scrap That is
forgotten IN the current ar
rangement.
Actually Britain pays nothing
unless or until she pays the new
loan SO years hence. In short.
we throw away S25 900 000, 600
Of debt for a new debt Of
$50 100000 to 100000, ,000' 10
begin in six years.