Evening star. [volume] (Washington, D.C.) 1854-1972, 1945-12-07
Truman Due 10 Ask
Congress Soon 10 OK
Loan 10 Great Britain

Loan 10 Great Britain
Continued From First Pageo
with our country in bringing about
more orderly economic world"
Senator Hill, Democrat, of Ala
bama declared that 1.-The loan
should be made" He said that "in
making it we are promoting the
interests of the United States as
we'll as the stability and peace of
the world"
However, Representative Reed,
Republican, Of New York comment
ed that I'VE have committed our
selves far enough financially. These
loans will not be repaid" Also, in
the House yesterday Representative
Short, Republican, of Missouri said
he would not vote one dollar for a
British loan "as long as they've got
the crown jewels in London"
Hull Halls Agreement.
Former Secretary Of State Cordell
Hull today hailed the agreement as
indicating that the United States
has assumed an appropriate role
of world leadership towards perma-
nent peace
Mr.. Hull, who promoted the re-
ciprocal trade agreements program
throughout his service as Secretary
of State, emphasized the part of the
agreement relating to an interna-
|tional conference for lifting restric-
tions on world trade. He said the
world needs an international or
ganization for promoting mutually
profitable trade among all nations
and preventing economic warfare
which SO often leads to physical
combat"
Lord Keynes, British financial
adviser. called Oil President Truman
today before leaving for home and
told newsmen as he left the Presi-
dents Office that he had told the
President, 4 greatly appreciate the
judgment and fairness with which
your people have handled this
matter
Lord Keynes goes TO New York
| this afternoon and plans to sail on
the Queen Elizabeth Tuesday.
Four-Point Agreement.
The loan must be approved by the
House as well as the Senate, mas
much as the lower chamber has the
constitutional authority to originate
all measures calling for an appro-
priation for the Treasury. However,
under congressional authority grant,
ed the President under the Lease
Lend Act, Mr.. Truman may approve
the $3.50 100000 credit on goods and
claims without consulting Congress.
Announced jointly last night by
President Truman and Prime Min
lister Attlee. the agreement provides
for:
/. A monetary credit of $780,
600, 900 payable over so years begin
ming on December l, 1851, at an in
terest rate of 2 per cent to be
advanced by the United States
Treasury to Great Britain once Con-
gress has approved it.
| 2. A settlement of lease-lend, sur
plus property and mutual claims by
a British payment of approximately
$3.50 900 900, subject to minor adjust
ments. Terms of payment would be
the same as on the loan.
Preference Elimination.
3. American and British agree.
ment on common foreign trade
Il policies to be supported. at thu
forthcoming International Trad
Conference. This includes a com
mitment for the elimination o
tariff preferences" which is inter
preted as meaning the end of TIT
Empire preference system.
4. A British agreement to seel
IAN early settlement covering tn.
sterling balances accumulated by
sterling area and other countries
which envisages a scaling down O,
the United Kingdoms $4,000, 900 ,00(
debt to these areas. American ne.
gotiators had insisted on this as &
prerequisite to a United States loan
The agreement provides that the
loan shall be repaid in so annual in
stallments of principal and interest
calculated at the rate of $31, 1923 ,0O(
for each $1,000, ZOO, 900 of credit
! used. Assuming that the British
withdraw the entire amount, the in
Stallments would be approximately
Sll9 100000 annually.
However, a f1ve-year period OF
grace is allowed and the first pay.
ment will not fall due until Decem.
Der 81, 1851 Interest is calculated
at 2 per cent on the net balance due
at the end of each year.
Escape Clause" Provided.
Furthermore. the loan provides ar
escape clause" The United King.
dom may ask the United States II
any year to waive the interes
payment and the request will bt
!. granted. if:
l. The United Kingdom finds il
, necessary in view of its interna.
tional exchange, gold and foreign
exchange position.
; 2. And the international Monetary
r Fund certifles that the United King.
dom's income from home-producee
$ exports and its net income from in.
r visible currency transactions was
during the previous five years, les.
than the average amount of i'm.
:, ports during 1868. There art
various other highly technical de.
tails)
u Great Britain agrees, on it's side
not to seek before the end of 1876.
any loans within the Empire "or
terms more favorable to the lende,
than the terms of this line O
credit"
The British also contract to pro-
0 vide the United States, before pay
? ment OF the loan begins in 1851