Evening star., 1946-04-28
British loan Approval
This Week by Margin
OF 4 10 { Predicted
By J, A. O'Leory

Senate leaders are hopeful of get
ting decision on the So, 3,750, 900, ,00C
British loan this week, to clear the
way for passage of one-year ex-
tension of the draft before that
law expires on May IS.
Although there has been no agree.
ment to limit debate, informed
sources we're optimistic yesterday
over the prospects for. voting on the
loan and various proposed amend.
ments before Friday.
Several Senators who have beer
active" in the loan fight, including
some opponents, said privately yes
terday they believe majority now
favor the financial agreement. Es-
Inmates Of the margin for it varied
from 4 to votes.
House Action to Follow.
With such close lineup, ad-
ministration lieutenants were anx-
ious to have their maximum
strength present when the roll is
called, realizing that a few alb.
sentees might change the result
After the Senate acts, the loar
agreement must still go through
the House.
Backers of the loan will try tc
defeat the several amendments that
have been offered, on the ground
that am change would necessitate
renegotia ton of the financial agree
ment. ...
Senators have been more reluc-
tant to forecast how the voting will
60 on amendments, the strongest of
which is said to be the proposal OF
Senator Mcfarland, Democrat, OF
Arizona, relating to the use OF
American bases in British territory
Bases Agreement Sought.
Under the Mcfarland agreement
the loan would not become effective
until arrangements had been made
| for permanent acquisition of United
States military bases now being
used under 99-year leases, and pro-
vision for peacetime commercial use
by this country of other bases built
by the United States in British ter
ritory. Under the amendment the
value placed on the rights thus OBJ
tanned would be credited against
the debt from the World War.
The first vote is likely to come
however, on the Taft substitute
which is the pending question, tc
make Great Britain a gift of ST.
100000 with which to buy goods
In this country, in lieu of the
larger amount on loan basis.
| Senator Austin. Republican, Of
Vermont, declared in a broadcast
last night that approval of the So
750,000,000 loan as reported from
the Banking Committee would be
good business" for the United
States and would put us in a DO
sition to pay our great national
debt"
Senator Austin said the national
debt could be paid only by raising
national income, through increased
| employment and production.
Draft Issue Due Next Week.
If the British loan can be dis.
posed of by the end of this week
the Senate could take Up the draf1
extension bill on Monday, Nav 6
with nine days remaining in which
to pass 1t and work out a fina
agreement with the House.
| There were reliable indication,
yesterday that the Senate is iikel,
to pass draft bill without the two
major restrictions the House at.
tached to it. One raises the draf
age from 18 to 20 years. The othel
would ban inductions between MAY
Is and October Is, and permit then
after that date only on the authori.
zation of the President.
If the Senate knocks out these
two provisions, the final result
probably would be a compromise
with the House in eopfarepce