Evening star., 1945-12-10
British Loan Approval
Forecast After Bitter
Congressional Debate
By the Associated Press.

BY the Associated Press.
Administration leaders EXPECT tn,
proposed $3.50, ,0o0, 600 loan to Brit.
ain to move through Congress in
ABOUT the. same manner as the
Breton Woods agreements.
That is: Bitter opposition, strons
speeches, but finally a big vote Of
approval.
No ofncial would make such 4
prediction publicly, but several
leaders who helped draw up the
loan agreement with Britain said
privately they think they can eet
the matter through in due time.
II they do it will be over the f1rm
opposition of those who contend
tnat the British didn't finish re-
paying their World War debt-so
why lend them any more?
Linked to Breton Woods.
In addition to the $3.50, 900 900
ioan tentatively agreed on last week
oy American and British officials
ehe TWO governments made a anal
settlement Of lease-lend and sur
pus property that leaves the Brit
lsh owing $3.50, ,o00,0o
The proposed loan was linked to
the Breton Woods monetary insti-
tutlons yesterday by Chairman
Spence of the House Banking
Committee.
This loan and the Breton Woods
agreements" Mr. Spence said, ARE
part Of the same picture. They
both have one purpose-to do away
with the practices that made for
economic warfare"
Congress last July approved United
States membership in the interna-
tional monetary fund and the in
ternational bank which were tenta-
lively drawn up by delegates from
A countries at Breton Woods, N. H.,
in July, 1914.
Now Debated by British.
Now, President Truman is about
to ask Congress to provide a $780,
100000 loan to bolster the United
Kingdom economically.
Both the Breton Woods agree
ments and the terms of the loan
were introduced simultaneously in
the British Parliament on THURSDAY
night and now are being debated.
The British waited until the loan
agreement had been signed before
taking up Breton Woods. Their
attitude is that without q loan,
they would be unable to fulfill their
Breton Woods commitments. But
they did not wait for Congress to
act on the loan. Such action Is
not expected until early next year.
I am pleased that the British
appear to be ratifying Breton
Woods right away, without waiting
for congressional approval of the
loan" MIR. Spence said.
Objective Hailed.
Treasury officials say that several
countries affiliated with Britain are
sure to join the international bank
and fund when Britain does. The
Treasury is confident that the two
agencies will be ratified soon by
nations contributing IS per cent OF
the capital. The agencies cannot
come into existence until that hap
pens.
Mr.. Spence said he has not yet
mastered the details of the pro-
posed loan, but II think the general
objectives are meritorious. If we
can do away with economic warfare
1t will be a fine thing"
Chairman. Wagner of the Senate
Banking Committee has expressed
general approval of the idea of
aiding Britain in order that she
can help the United States to main
tain IAN orderly economic world"
There has been very little COM
ment from members of Congress on
the specific terms of the financial
agreements reached last week. Few
members have studied the docu-
ments. Several who have spoken
in opposition to the proposal said
they are against any loan to Britain,