Evening star., 1946-01-30
(Tert of Message on Page A-14.J
BY ]. A. FOX.

Congress for early ratification O
the 81 400, 100000 loan and credi
agreement recently effected with
Great Britain, declaring it will
be "a great contribution to thu
establishment of a permanent
state of peace and prosperity"
Under the arrangement contem.
pla>ed. the British government get.
a loan of $3,375,O00, 900, plus S625,.
100000 that will liquidate lease-lenc
obligations.
Ratification will be through 9
joint resolution.
In a 1,700-word message sent tc
Congress, the President stressed
that the line of credit extending
over a period approximating S.
years, is necessary corollary to the
Breton Woods agreements provid-
ing for an international stabiliza
tlon fund and an international bank
for reconstruction and redevelop-
ment.
AhhuCHCc UH WOTlu lra0e.
Explaining that the United King
dom must continue many of its
emergency wartime financial con-
trolls unless it obtains additional
working capital, the President said
1t is apparent that, in the case OF
a principal member of the Interna
tlonal Monetary Fund, we can i'll
afford to wait for the period per-
mitted by the Breton Woods agree
ments five years. for the removal
OF these hindrances to the financial
and commercial relationships be-
tween nations. Now is the time to
establish postwar monetary and
financial policies of the United Ma
tions. Now is the time to take ac-
ion to enable the United Kingdom
to move with us toward the prompt
abolition of these restrictions"
Mr.. Truman said the proposed
loan will set the course of American
and British economic relations for
many years and in so doing it will
have decisive influence on the in
ternational trade of the whole
world"
The President set forth two prin-
cipal accomplishments to be expect
ed from the law.
He said its important short term
purposes" are to help Britain meet
the expected deficit in her balance
OF payments during the next six
years while at the same time it will
enable her to make world purchases
of food and raw materials essential
to the life and work of the British
people" In doing this, Mr.. Truman
added, 1t will keep open a market
for those American surpluses which
are customarily exported to the
United Kingdom.
End of Emergency Controls.
However,, the President said, "its
most important purpose" from the
American point of view is to cause
removal of emergency controls ex-
ercised by the United Kingdom over
its international transactions quick
er than the Breton Woods agree
ment requires.
In ampli1cation. the President
said prompt relaxation of exchange
restrictions will permit the United
Kingdom to move with the United
States toward the common goal of
expanded world trade which means
expanded production, consumption
and employment and rising stand
ards of living everywhere
Mr.. Truman stressed that other
nations also will be enabled to relax
their restrictions once the United
Kingdom has led the way.
The Chief Executive said also that
the agreement makes it possible for
the United Kingdom "to give whole
hearted support to the proposals for
expansion of world trade and en-
ployment which the United States
has recently put forward as a basis
for international discussions by the
United Nations"
Details of Loan Given.
The President went into detail on
the arrangement to which the
United States agreed for liquidation
OF this loan. AS he pointed out
Great Britain will be permitted to
draw against this line of credit until
1851 without payment of interest
Then, repayment of the principal
with interest must be begun, with
payment extending over so years
These terms are neither unusua
nor difficult to understand" he said
The President said that there is
g. TONN