Evening star., 1946-05-11
British Loan Issue
Goes,to House, With
Outcome in Doubt
BY the Assoeiotsd Press

D
a4,' Half its battle won, the British
loan bill moved over to the House
today, facing another hard
struggle, with it's ultimate fate
very much in doubt.
Administration forces, however
took much encouragement from the
way the measure emerged victorious
from the Senate by a 1864 vote
yesterday after a month of bitter
debate.
Britain's Prime Minister Attlee
was represented as highly gratified"
over the Senate's approval of the
$3,750,000,000 credit, and his per-
sonal secretary said the Prime
Minister will comment later on the
favorable action in Parliament.
Foreign Secretary Bevin said in
Paris, where he Is attending the
Foreign Minister Conference that
this means that the common
wealth of the Western World moves
together. 1t will lead more and more
to integration and in turn con-
tribute to the peace of the world"
But the House battle on the credit
was still to come, and Chairman
Spence of the Banking Committee
cleared the way for the opening
skirmishes by scheduling the start
OF public hearings before his group
on Tuesday. These are expected to
take about two weeks.
Sppret wy 0f tho rroo c,,r,, u;,co.
who contends the loan will be
beneficial to American and world
commerce as we'll as to Britain's
postwar financial setup, was called
as the first witness.
Opposition lines formed swiftly.
. Representative Buffet, Republic
. an, OF Nebraska, Banking Commit
tee member, announced he will op-
. pose the loan unless the legislation
plans for balanced budget" and
: is financed by special bond issue
. privately sold.'
1t was also expected that the is
= sue OF permanent possession of
p. military and naval bases now leased
4 from the British-vigorously debat-
=. ed but defeated by the Senate-will
.: be raised again in the House.
Constituents Polled.
The Office of Representative Bar
, ry, Democrat, of New York, another
Banking Committee member, re-
) ported that poll of constituents in
his Queens County, New York, dis
: trict showed 80 per cent against the
British loan and "a per cent oppos-
ing loan to Russia.
However, an informal check of
the Banking Committee members
indicated that group would approve
the loan, perhaps by narrow mar
gin. AS for the House membership,
many said they have not made up
their minds.
The House Democratic whip, Rep
resentative Sparkman of Alabama,
was optimistic, predicting the House
would pass the bill by a comfortable
margin in three weeks. Other lead
ers said privately they were not Ger
tain Of the outcome. One unpre-
dictable factor is that many men,
bers are anxious to get away from
Washington by mid-July to organ
tze their campaigns for reelection
The Senate approved the 50-year1
loan without changing any of the
terms worked out by representatives
of the two nations last year. It
provides:
/. Authorization for the Treas
ury to advance Britain up to the
full $3.50, 100000 during the next
five years, with no interest during
That time. Interest at per cent;
would begin in 1851.
2. The British could obtain waiver
of interest payments whenever their
exports failed to exceed by go per
cent those of the period Immediate
ly preceding the war.
3. Britain in return proposes to
attempt within a year to begin dis
solving the wartime currency re-
strictions under which countries in
the socalled sterling bloc" sold
goods to England and received cred
it which they could spend only for
British goods and services.