PING!
Posted on 12/28/2006 5:26:26 PM PST by GMMAC
Britain finally pays off World War Two loans
reuters.co.uk
Thu Dec 28, 2006 6:36 PM GMT
LONDON (Reuters) - The government said it will on Friday pay back the final instalments of loans taken out at the end of World War Two to finance vital reconstruction.
The payments of $83.25 million (42.4 million pounds) to the United States and $22.7 million to Canada will close the final chapter of the war and mean that in total the country has paid close to twice what it borrowed in 1945 and 1946.
"This week we finally honour in full our commitments to the U.S. and Canada for the support they gave us 60 years ago," Treasury minister Ed Balls said on Thursday. "It was vital support which helped Britain defeat Nazi Germany and secure peace and prosperity in the post-war period. We honour our commitments to them now as they honoured their commitments to us all those years ago," he added.
Britain borrowed a total of $4.3 billion from the United States in 1945, followed in 1946 by a loan of $1.2 billion from Canada -- both at an interest rate of just two percent.
During World War Two, the United States effectively gave Britain billions of dollars worth of goods under the lend-lease programme.
But that abruptly ended in September 1945 despite the fact Britain was on its knees economically after six years of warfare.
Despite the heavily discounted rate of interest on the loans, in the intervening years Britain has failed to make any payments on six occasions because of balance of payments problems -- in 1956, 1957, 1964, 1965, 1968 and 1976.
To date the country has paid a total of $7.5 billion to the United States and $2 billion to Canada.
The Treasury noted that there were still World War One debts owed to and by Britain, but that no action had been taken on either count since U.S. President Herbert Hoover declared a moratorium in 1931 during the Great Depression.
© Reuters 2006. All Rights Reserved.
PING!
We should have forgiven their debt. Why not. We do everyone else.
I had a long talk about financing wars with a Boy Scout from our troop the other day. He was worried about the US debt (no doubt his parents are worried and it cascaded down to him).
Chump change.
We did forgive the majority of their debt to us. This article is extremely misleading. Total nonsense.
No wonder Blair had to fly on commercial jet!
LOL!
In lend lease alone we supplied $50.1 billion in aid -- of which we were repaid only $7.8 billion.
Yet GB whines about paying us back that which we loaned them after the war.
With the help tony Blair gave us in the war on terror we should of declared any all debts paid in full several years ago.
...and when will the U.S. pay off their debts?
..which brings to mind to the Lend Lease agreements with the Ruushuuns..
When do THEY pony up like the English?
I'm sure you mean "our" debt.
But what debt do we owe to any foreign country?
We pay everything off as it becomes due. As far as I know our government's credit is excellent.
well, I believe it is the national debt.
Wrong. Nice try though.
FLASHBACK:
Anglo-American relations - the good old days
Canadien fan here...
Am I missing something?
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