Evening star., 1946-03-05
vinson Opens
Congress Fight
On British Loan
Treasury Chief Tells
Senute Committee
Terms Are Sound
By J. A. O'Ieoy

The proposed $3,750,000, ,00(
British loan is "a sound invest
ment in world peace and pros.
perity," Secretary of the Treas
ury Vinson told the Senate
Banking Committee as he opened
the administrations fight to, OBJ
tain approval of the credit.
mot only will the $3,750, 600, 900
be fully repaid" said the Treasury
head, "but American business will
reap rich dividends through its ac-
cess to world markets on a fair
and equal basis.
Every section OF this country
every sector of our economy, de-
pends in part on world trade. The
financial agreement will open the
markets of England and many
other countries to our exporters.
This means more exports for our
farmers and manufacturers, more
jobs for our workers, more profits
for business and a higher income
for all our people,"
Mr.. VinSon was the first witness
at two weeks of hearings which
congressional leaders will watch
closely for indications of how senti-
ment on Capitol Hill is shaping up
on the proposal.
Conditions of Loan Cited.
Mr.. Vinson emphasized this ex-
tension of credit is not to be a gift,
but will be repaid with interest at
per cent. He stressed also that it
S not an unconditional loan.
ut is a credit which must be used
only to meet Britain's current pay
nents and to enable her to remove
aer wartime currency and trade
restrictions" he continued. None
u the credit can be used to pay the
blocked sterling balance, or any
of England's present obligations.
Payments on such obligations must
'e met by England out of her own
'esources, Or out of funds secured
n some other way"
The Secretary warned that Eng
and has two paths 1t may follow in
olving its economic problems. One
way is to join in the economic pro-
ram of the United Nations, under
which she would remove her war
ime currency and trade controls,
le said. Then. as world trade grows,
England would share in the growth
nd her increased exports would in
ime pay for her imports.
Would Be Outside Bloc.
"The alternative" he said, 'is to
ontinue and even extend these cur
ency and trade controls. England
would form British economic bloc.
Countries that want to sell to her
would have to take payment in
British exports. The countries to
vhom Britain owes s13 900 ,000, 900 in
blocked sterling would be compelled
o take British goods in payment of
he debts. In brief, England would
orm an exclusive British economic
doc in which trade inside the bloc
S encouraged through preferences
md pressures, and trade outside the
'loc is discouraged through discrim-
and controls. We would be
me of the countries outside the
,loc."
Mr.. Vinson told the committee,
We are going to have one system
,r the other. Either we will have
producing world trade, or
We will have economic blocs. The
currency and trade controls in Eng
and endanger the whole interna-
ional economic program that the
United Nations have developed over
he past five years."
Mr.. Vinson encountered a barrage
u questions from Senators Murdock.
Democrat, of Utah and Taft, Repub-
ican, Of Ohio challenging some of
he economic arguments he used in
support of the loan.
Both Senators explained after the
opening session that their questions
10 not mean they have decided to
oppose the plan. Senator Murdock
ICa1 pn