Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-04-11
Final OK Given
British Delay in
Debt Payments

The sun shines brighter today
on a British debt postponement
resolution finally sent to the
White House after a House
workout in twisting the tradi-
tional lions tail.
The sun had almost set yes
terday when the House wound
UP six hours of acrimonious de-
bate on the Senate-approved
measure and passed it. 2l8 to
1877.
Unfortunately for the chances
Of quick concurrence on the bill.
its appearance on the House
floor yesterday conceded with
British government announce
ment of a $274 million tax cut
in that country. This was enough
to set of storm over the reso-
luton to permit Britain to post
pone payments of up to seven
installments of principal and in
terest on the $3.7 billion loan
from the United States in 1916.
Such payments have been
made annually in December in
a total Of about 1894 million
since 1851. Approximately $81
million paid in interest last De-
cember would be included in the
postponement. Before the final
roll call on the bill. the House
defeated. 1876 to II. an amend
ment proposed by Representa-
tive Sheehan, Republican Of
Illinois. for the United States
to keep that $81 million.
Under the 1916 agreement
Britain claimed a right to waive
the $8l million interest payment
in any year. That question, how
ever, has never been officially re-
solved. In any event. administra-
ton leaders as well as many
prominent House Democrats, in
.luding Speaker Rayburn. favored
the agreement as being to the
advantage of this country as
well as Britain.
Mr.. Rayburn, in floor
speech yesterday, not only de-
Tended it as a good business
proposition" but also declared 1t
was vitality necessary from q
diplomatic standpoint"
The fact that Mr.. Rayburn as
well as Republican Leader
Martin joined in vigorously urg-
ing adoption of the resolution
indicated that it was not having
clear sailing. The final vote was
intentionally closer than had
originally been expected on what
was described as an almost rou-
tine measure requested by the
White House.
Debate Wanders
The debate wandered into
many by-paths of fairly re-
cent history. At one point the
name of the late Harry Dexter
White, former Under Secretary
OF the Treasury, was injected
in the discussion. Representa-
tive Judd. Republican of Mime
sofa, recalled he was in the
Treasury at the time of the
negotiation of the original loan.
Representative Hays. Democrat
OF Arkansas, declared Mr.. White
had nothing to do with those
negotiations.
I The name of Joe Louis, former
heavyweight boxing champion,
also was tossed into the forensic
ring. Representative O'Neill,
Democrat of New York, pro-
tested that the postponement
agreement gave better treatment
to Britain than the Internal
Revenue Service is giving to
Mr.. Louis in his income tax
troubles.
Representative Gavin, Re-
publican of Pennsylvania, COM
planned that IN negotiations of
this kind with other countries
we always have to do the
compromising" Representative
Mason, Republican of illinois,
viewed the bill as maintaining
British royalty in the style to
which they like to be accus-
toned"
Several speakers on both sides
Of the issue mentioned the Brit
ish tax cut announcement. Even
some advocates of the postpone
ment resolution conceded that
1t was unfortunate" the an
nouncement happened to be
made in London only a few
hours before the House began
considering the bill.
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