Evening star., 1946-01-30
Text Of 7rumon Message
President Asks Congress for Early Approval
Of Agreement for Loon to Great Britain

ssA" l.
under the agreement may be drawn
upon until the end of 1851. At that
time the United Kingdom will be
obligated to begin repayment Of the
principal with interest and those
payments will continue over period
Of so years. These terms are neither
unusual nor difficult to understand
There is one new concept. however
embodied in the terms of the credit
We have recognized that conditions
may exist temporarily during such
a long period of time which would
make the payment of interest or
lsuch large amount difficult If moi
impossible. Accordingly, provision
has been made for the waiver OF
interest by the United States Gov
lernment after a certiflcation by the
International Monetary Fund as tc
the facts regarding the. balance OF
payments position of the United
Kingdom.
Shouldn't Ask Payment.
1t is not to our advantage to press
for payment of interest when pay
ment is impossible and thus force
default and a crumbling of inter-
national economic relations.
The financial assistance which
the United Kingdom would receive
under the agreement has made it
possible for the two governments to
agree on specific course of action
which in short period of time will
result In the removal of emergency
controls over foreign exchange and
discriminatory import restrictions
and the re-establishment of peace
time practices designed to promote
the recovery of world trade Britain
has agreed to abolish the .so-called
sterling area dollar pool"
She has agreed to give up most
of her rights during the transition
period provided for in the Interna-
tional Monetary Fund Agreement
and thus to abandon controls over
foreign exchange which she would
otherwise be permitted by the terms
Of that agreement to continue for a
considerable period Of time. In ad-
dition to the direct benefits which
will flow from this stimulus to An
glo-American trade there will be the
added benefits derived from the
ability Of other nations to relax their
restrictions once the United King
dom has led the way.
Another Difficult Problem.
Another troublesome financial
problem which has been fully and
frankly discussed by the two nations
is that Of the sterling liabilities of
Great Britain which have resulted
from her large expenditures abroad
during the war. In the financial
agreement the British government
has undertaken to adjust and settle
these obligations out of resources
other than the American credit and
has outlined its intentions with re-
spect to their settlement.
Our concern in this connection is
twofold. In the first place we want
other countries which are in posi-
tion to do so to grant assistance to
the United Kingdom within their
means. Those which hold large
sterling balances can do so by scaling
them down. In the second place we
want to be certain that the liquida-
tion OF these balances will not dis
eriminate against American trade.
The financial agreement contains q
specific undertaking by the govern
ment of the United Kingdom that
no such discrimination shall result
from these settlements.
The financial agreement also
makes 1t possible for the United
Kingdom to give wholehearted sup
port to the proposals for expansion
of world trade and employment
which the United States has recently
put forward as basis for interna-
tional discussions by the United Ma
tions. In the joint statement on
commercial policy published at the
same time as the financial agree
ment. the United Kingdom has un-
dertaken to support these proposals
and to use its best endeavors in CO.
operation with the United States to
bring to successful conclusion in
ternational discussions based upon
them.
Contribution TO Peace.
The implementation Of the finan-
cial agreement will be a great con-
,tribution to the establishment of
a permanent state of peace and
prosperity. We are all aware Of the
dangers inherent in unchecked eco
nomic rivalry and economic war
fare. These dangers can be elm
mated by the firm resolution Of this
Nation and the United Kingdom
to carry forward the work which
has been so well begun.
The financial agreement trans
mitted herewith means that in
stead VI economic controversy be-
tween the two countries the wise
rules of the Breton Woods Agree
ments will be fully effective much
sooner than we believed possible
when the Congress enacted the
Breton Woods Agreements Act. ]
urge that Congress act on the finan-