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Britain pays 1945 war debt
The Times ^ | 12/24/06 | David Smith

Posted on 12/24/2006 12:01:58 AM PST by bruinbirdman

THE government will this week close a chapter in Britain’s wartime history by completing the repayment of a loan taken out with America more than 60 years ago, just after the second world war. Treasury officials said the repayment of the US war loan taken out under a 1945 agreement would be completed by December 31.

The loan dates back to September 1945. From 1941, Britain and other allied nations had received large quantities of equipment and supplies under Franklin Roosevelt’s Lend-Lease programme.

Britain received about $30 billion of goods — just over £7 billion at the prevailing exchange rate — during the war years, in effect gifts from America. But in September 1945 the US abruptly announced an end to the Lend-Lease programme, despite the need for large-scale reconstruction and with Britain on its knees economically.

Goods already in Britain or in transit were sold to the UK government at heavily discounted prices — one-tenth of their value — the amount paid being in the form of a loan.

The amount, together with a line of credit, was $4.34 billion with a 2% interest rate, originally intended to be paid back over 50 years beginning in 1950.

Some critics, including Lord Keynes, saw the loan as a means used by America to subjugate Britain after the war.

As it was, keeping up the payments was often difficult. There were six years when Britain deferred payment as a result of economic crises and pressure on the official reserves. But this week’s £43m remittance will pay it off.

Many war loans are never repaid.

Britain borrowed money from America during the first world war but never fully settled the debt. This was because President Herbert Hoover declared a debt moratorium during the global financial crisis of 1931.

At the time of the moratorium, Britain was owed more in war debt by other countries than it owed to America.


TOPICS: Business/Economy; Foreign Affairs; Government; News/Current Events
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1 posted on 12/24/2006 12:02:01 AM PST by bruinbirdman
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To: bruinbirdman
Some critics, including Lord Keynes, saw the loan as a means used by America to subjugate Britain after the war.
Should have charged the Brits for all Cold War expenses associated with keeping them from speaking Russian.
2 posted on 12/24/2006 12:15:46 AM PST by peyton randolph (No man knows the day nor the hour of The Coming of The Great White Handkerchief.)
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To: peyton randolph

Britain, under the Man of the Century, Winston Churchill, lost a generation serving as Americas unsinkable aircraft carrier. A country to this day who shares our fate. Good or bad.

The former enemy, Germany, did they pay back for the Marshall plan? Or for the US and Britain keeping the Russians in check?


Regards.


3 posted on 12/24/2006 12:25:25 AM PST by ARE SOLE (I thought the Party was supposed to court the voters and not the other way around?)
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To: bruinbirdman
Some critics, including Lord Keynes, saw the loan as a means used by America to subjugate Britain after the war.

He was correct. But the British, by paying off the debt, have cleverly thwarted our evil, complicated, and very long-term plot.

4 posted on 12/24/2006 12:29:20 AM PST by Irish Rose (Will work for chocolate.)
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To: bruinbirdman
Evil Americans doing nasty sort of things on Christmas as usual Eh?

:)
5 posted on 12/24/2006 12:45:22 AM PST by kinoxi
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To: ARE SOLE

Sorry, it's not America's fault that they "lost a generation". By that logic, America lost 2 generations saving britain's ass.


6 posted on 12/24/2006 12:51:34 AM PST by ozzymandus
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Comment #7 Removed by Moderator

To: peyton randolph

Such bitterness. At least somebody repaid us a debt. How often has that happened?


8 posted on 12/24/2006 1:05:58 AM PST by beelzepug (the Nikonoclast)
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To: bruinbirdman

Ping-a-Ling


9 posted on 12/24/2006 1:13:00 AM PST by kinsman redeemer (The real enemy seeks to devour what is good.)
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To: bruinbirdman

Ping-a-Ling


10 posted on 12/24/2006 1:16:21 AM PST by kinsman redeemer (The real enemy seeks to devour what is good.)
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To: ozzymandus
Sorry, it's not America's fault that they "lost a generation". By that logic, America lost 2 generations saving britain's ass.

I do not think British losses were America's fault. I didn't say that, you did. I just meant they were an ally, and that they and the commonwealth countries did what they could.

The Nazi's had to be defeated, with or without British help. The Brits knew that in 1939 and they fought alone as the Wests only bulwark against Hitler until 1942.

Regards.

11 posted on 12/24/2006 1:19:22 AM PST by ARE SOLE (I thought the Party was supposed to court the voters and not the other way around?)
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To: FrPR
As these names fade from memory, May God continue to bless the United States of America. May she ever serve as a beacon of hope for all those whose freedom is imperiled.

Valor worth remembering. My Grandfather was with the Argyl & Sutherland Highlanders in Singapore.

Regards.

12 posted on 12/24/2006 1:22:20 AM PST by ARE SOLE (I thought the Party was supposed to court the voters and not the other way around?)
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To: peyton randolph

No. We did that for ourselves as much as we did it for them. there are those in british society that would favor russian influence over american. We thwarted russian idealism seeping into western europe for our own good as well as for theirs. The debt they have repaid is good enough as far as I'm concerned. The fact that they willingly repay debt, any debt, is such a wonderful thing that it makes me almost want to forgive the debt they are repaying...well, almost.


13 posted on 12/24/2006 1:22:24 AM PST by mamelukesabre
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To: bruinbirdman

great, now each American family's share of the national debt is only $395,283,218,355,028,173,385,753,938


can we please stop being taxed into submission already? how about we pay ourselves back instead of wasting billions on the failed drug war, failing public schools, failing social security, a failed war in iraq... etc etc.


14 posted on 12/24/2006 1:31:25 AM PST by t_skoz ("let me be who I am - let me kick out the jams!")
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To: t_skoz

Your numbers beg the question. Do you have a link?


15 posted on 12/24/2006 1:33:27 AM PST by kinoxi
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To: beelzepug

Twice now, apparently. Tiny Finland, paid its World War I debts fully and on time, in gold no less, during the interwar half-time festivities known as the "Great Depression". Britain didn't end rationing till 1956 - the postwar period was in some ways worse than the war years from what I've read. They more or less "mined" their silver coinage to help pay some of their debts to US, turning to slug coinage. The US didn't follow suit till '65.


16 posted on 12/24/2006 2:15:39 AM PST by Freedom4US (u)
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To: bruinbirdman

Nixon, by executive order, forgave the Soviet Union's Lend-lease debt.


17 posted on 12/24/2006 2:31:23 AM PST by preacher (A government which robs from Peter to pay Paul will always have the support of Paul.)
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To: bruinbirdman; MadIvan
Nice to get repaid, but what a loaded article!!

Britain received about $30 billion of goods — just over £7 billion at the prevailing exchange rate— during the war years, in effect gifts from America.

Hmm, he says the prevailing exchange rate, but doesn't specify if it's 7 billion pounds in todays pounds, don't you think today's pounds would be a better measure than the exchange rate value of 60 years ago?

But in September 1945 the US abruptly announced an end to the Lend-Lease programme, despite the need for large-scale reconstruction and with Britain on its knees economically.

Let the whining begin! The arrogance of foreigners always strikes me. They both state what we need to do for them, and fail to state why they are of such integral value to us! Go figure.

Goods already in Britain or in transit were sold to the UK government at heavily discounted prices — one-tenth of their value — the amount paid being in the form of a loan.

You're welcome.

The amount, together with a line of credit, was $4.34 billion with a 2% interest rate, originally intended to be paid back over 50 years beginning in 1950. Some critics, including Lord Keynes, saw the loan as a means used by America to subjugate Britain after the war.

I'd like to be subjugated with 2% interest and a 50year repayment window!

As it was, keeping up the payments was often difficult.

Whaa, whaa! I'm crying here. India had a real lean 150 years there too, as all their wealth and resources were whored away by the Britishers. Considering that (and all of Britain's other colonial "successes") it so funny to see them wail for their own lost pennies. What prima donnas!

Many war loans are never repaid.

Wow, and you get a gold star for being special too.

Britain borrowed money from America during the first world war but never fully settled the debt. This was because President Herbert Hoover declared a debt moratorium during the global financial crisis of 1931.

Er, you could actually still send it on over, you know, Hoover won't stop you now, actually.

At the time of the moratorium, Britain was owed more in war debt by other countries than it owed to America.

Whaaa, whaaa, poor suffering Imperial victims. I hope he's not implying that Hoover declared a moratorium on Britain's debts, he didn't have that power, but it would be par for the course for some foreigners to release their own debts, then say we did it!

I expected this to be posted by MadIvan, as I've seen him reference the "final loan repayment" elsewhere. I wonder what his take on this exercise in self-pity would be?

And Merry Christmas everyone!
18 posted on 12/24/2006 3:06:03 AM PST by starbase (Understanding Written Propaganda (click "starbase" to learn 22 manipulating tricks!!))
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To: ARE SOLE

You're right......

The US government can forgive a $7 billion debt owed by Egypt however we stick it to Great Britain.

England has always gone back to back with us....thank you.


19 posted on 12/24/2006 3:07:04 AM PST by LFOD (IRAQ - Back in downtown Baghdad)
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To: bruinbirdman
The Roosevelt Administration was no early friend to Britain from 1939 - 1941.

Even historian Steven Ambrose said, on tape, that America drove a "very hard bargain" regard any aid sent.

Not only did Roosevelt hold back the best equipment, he forced Britain to give up key bases and territories throughout the world.

20 posted on 12/24/2006 3:12:31 AM PST by SkyPilot
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To: peyton randolph

Britian was useful to the U.S. during the Cold War. On the whole, I cannot help concluding that the US/UK relationship since 1940 has been one of the most successful and mutually beneficial in history.


21 posted on 12/24/2006 3:15:27 AM PST by Lonesome in Massachussets (The artist doesn't have to have all the answers; he must, however, ask the right questions honestly.)
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To: bruinbirdman
That was nice of them. To be honest, they paid the debt in blood standing by us when the world has turned it's back on us throughout the WOT. Then again, it's definitely in the best interests of both nations to fight together.

Yet they stood with us when their resident idiots were screaming louder than our own to deny us aid. God bless us both, our other great allies and protect our nations...from the enemies without and WITHIN...

22 posted on 12/24/2006 3:32:39 AM PST by Caipirabob (Communists... Socialists... Democrats...Traitors... Who can tell the difference?)
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To: SkyPilot

When this final loan to GB occurred, it was against the background of the FBI and MI6 hunt for "Homer" the Soviet mole inside the British FO. The loan was negotiated in part by Donald Maclean, who ironically, was "Homer".


23 posted on 12/24/2006 3:56:59 AM PST by metesky ("Brethren, leave us go amongst them." Rev. Capt. Samuel Johnston Clayton - Ward Bond- The Searchers)
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To: ARE SOLE

Pay 10% of value with money from a loan at 2% with a 50 term.

You don't think that's a gift? Do you have goods to sell me, or simply money to lend me on those terms?


24 posted on 12/24/2006 4:17:33 AM PST by SampleMan (Islamic tolerance is practiced by killing you last.)
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To: bruinbirdman
The USA should have taken Canada as repayment for WW1 and WW2 debt and keeping the communist from taken them over. But then again half of the Brits were commie sympathizers.
25 posted on 12/24/2006 5:19:45 AM PST by G-Man 1
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To: peyton randolph

Unfortunatly neither Germany nor France paid their debt. I believe Britain is the only country to have paid us back.


26 posted on 12/24/2006 5:32:23 AM PST by J_Baird
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To: bruinbirdman

DARN! There goes our plot to make England our 51st State.


27 posted on 12/24/2006 5:58:28 AM PST by MuttTheHoople
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To: Irish Rose

Writing off 90% of the debt and giving them a 2% interest rate was subjugation? Was Keynes right about anything?


28 posted on 12/24/2006 6:03:19 AM PST by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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To: SampleMan

Not only that but they were allowed to defer payments, and did.


29 posted on 12/24/2006 6:05:56 AM PST by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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To: ARE SOLE
The Nazi's had to be defeated, with or without British help. The Brits knew that in 1939 and they fought alone as the Wests only bulwark against Hitler until 1942.

It was in Britain's interest to fight the Nazis. We came to their aid, not the other way around.

30 posted on 12/24/2006 6:08:27 AM PST by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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To: bruinbirdman

good article...brings out how some people feel again...blame america...yeah that's right...it was the US fault to fight in european war theatres 20 years apart in the first half of the 20th century saving freedom!!!

when will the french start paying back their debts?????


31 posted on 12/24/2006 6:11:54 AM PST by hnj_00
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To: G-Man 1
The USA should have taken Canada as repayment for WW1 and WW2 debt and keeping the communist from taken them over. But then again half of the Brits were commie sympathizers

Well, the US did demand and receive bases from the Brits which gave them a force projection capacity hey'd never had and Britain had to thank them for the privilege...but it was worth it to Britain, given the alternative. Both countries got a reasonable deal.

32 posted on 12/24/2006 6:58:47 AM PST by Androcles (All your typos are belong to us)
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To: beelzepug

Still waiting to hear from the French about their war debt.


33 posted on 12/24/2006 7:01:36 AM PST by Farmer Dean (Every time a toilet flushes,another liberal gets his brains.)
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To: bruinbirdman
By my way of seeing it, we owe Britain at least as much as they owe us. They were the rampart of Fortress Europe; without them, we never could have launched the counteroffensive that ultimately drove to Berlin. Their courage during the Blitz and the bleak days after Dunkirk is an object lesson for any nation beset by implacable enemies. Love them or hate them, they have proven dependable allies with steel in their spines.

By standing true to their debt, they have proven that their honor is equally staunch.

34 posted on 12/24/2006 7:11:42 AM PST by IronJack (=)
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To: bruinbirdman
"Some critics, including Lord Keynes, saw the loan as a means used by America to subjugate Britain after the war."


Britain exist in nowadays as we know it due to America.If America wouldn't have got in WWII and wouldn't help Britain the Shakespeare language would sound like that:landwirshaflihenproductiongenosenshaft.
35 posted on 12/24/2006 7:13:17 AM PST by SeeSalt
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To: bruinbirdman

I think we should have forgiven Britain this WW2 debt.

However, we should sue for reparations for burning the White House in the War of 1812.

And for damages during the Revolutionary War.

At today's rate.


36 posted on 12/24/2006 7:21:03 AM PST by Basheva
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To: J_Baird
***Unfortunatly neither Germany nor France paid their debt. I believe Britain is the only country to have paid us back.****

Wrong, right and 1/2 right

Germany repaid its war debt in 1960
France never did.
Until we receive this final payment GB still owes us money.
The 1953 London Debt Agreement, or the German debt

Germany was the FIRST country to pay us back. And yes the terms were favorable, so were the terms we gave to everyone else.

37 posted on 12/24/2006 7:22:14 AM PST by Condor51 (Mayor Daley (D-Chi) For POTUS . Really, why not? He's more conservative than Rudy!)
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To: FrPR

I sometimes think the only reason God can bless America is because we are feeding over half the worlds population.

God sure isn't blessing America for its life style. homosexuals, and abortion, just for starters.


38 posted on 12/24/2006 7:27:32 AM PST by buck61
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To: Freedom4US

One of the only other country to pay us back from WWII is Taiwan.


39 posted on 12/24/2006 7:32:23 AM PST by Mashood
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To: Mashood

Not to state that you are not correct, but why would a Japanese colony repay US WWII loans? Or did you mean the ROC?


40 posted on 12/24/2006 7:36:22 AM PST by DeaconBenjamin2
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To: Condor51

Actually Germany never repaid its marshall plan debt. Germany Was loaned a total of One trillion four hundred and forty eight million. Most of the debt was forgiven in 1953 they only had to repay 1 billion at that time. I believe most of that was forgiven also.


41 posted on 12/24/2006 7:44:14 AM PST by J_Baird
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To: Condor51
"The 1953 London Debt Agreement, or the German debt"

Now there is a blast from the past.

Seems all the Treaty of Versailles Gold Bonds that the Red Army stole at the end of WW2 were made into worthless confetti. But there are still groups of con-men traveling the world selling them to other con-men.

42 posted on 12/24/2006 7:48:53 AM PST by investigateworld (Abortion stops a beating heart)
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To: bruinbirdman
Image hosted by Photobucket.com they are in RARE company indeed... to my knowledge, ONLY Finland, has ever paid us back in full.
43 posted on 12/24/2006 7:51:19 AM PST by Chode (American Hedonist )
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To: Moonman62
It was in Britain's interest to fight the Nazis. We came to their aid, not the other way around.

Strange that you think I suggested that Britain came to Americas aid. I do not know where you got that. It was in the interest of all decent nations, or any nation concerned about their own future to fight the Nazis.

There is no doubt the US came to Britain's aid. And their own defense.

Regards

44 posted on 12/24/2006 7:52:54 AM PST by ARE SOLE (I thought the Party was supposed to court the voters and not the other way around?)
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To: TR Jeffersonian

ping


45 posted on 12/24/2006 8:01:21 AM PST by kalee (No burka for me....EVER!)
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To: DeaconBenjamin2

I stand corrected...thanks...


46 posted on 12/24/2006 8:01:58 AM PST by Mashood
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To: SeeSalt
If America wouldn't have got in WWII and wouldn't help Britain the Shakespeare language would sound like that:landwirshaflihenproductiongenosenshaft.

Britain entered the war in September 1939. America did not enter until December 1941. As this article shows, material assistance we received in between from America was paid for. This whole nonsense of us "being saved" is nonsense. We had thwarted Hitler's plans of invasion well before you entered, with materials we paid for - what is true is that France and the rest of Europe would not have been liberated without American assistance.

Ivan

47 posted on 12/24/2006 8:05:40 AM PST by MadIvan (I aim to misbehave.)
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To: Freedom4US

My parents lived in England from 1951-55, my father was in the USAF. My mother said there were numerous bombed buildings that had been left standing and that their neighbors, they lived off-post, were still heavily rationed.


48 posted on 12/24/2006 8:07:07 AM PST by kalee (No burka for me....EVER!)
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To: MadIvan
We had thwarted Hitler's plans of invasion well before you entered, with materials we paid for - what is true is that France and the rest of Europe would not have been liberated without American assistance.

What really saved Britain was Hitler's stupid invasion of Russia.

49 posted on 12/24/2006 8:07:44 AM PST by Basheva
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To: starbase
I expected this to be posted by MadIvan, as I've seen him reference the "final loan repayment" elsewhere. I wonder what his take on this exercise in self-pity would be?

My response to any American swaggering about how much Britain owes the USA is simple: go to hell. The Americans were not just paid monetarily, but also in bases and in trade deals. America got a very good deal, we fought on alone until June 1941.

Ivan

50 posted on 12/24/2006 8:08:15 AM PST by MadIvan (I aim to misbehave.)
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