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.
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.
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...
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".
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?
Unfortunatly neither Germany nor France paid their debt. I believe Britain is the only country to have paid us back.
DARN! There goes our plot to make England our 51st State.
Writing off 90% of the debt and giving them a 2% interest rate was subjugation? Was Keynes right about anything?
Not only that but they were allowed to defer payments, and did.
It was in Britain's interest to fight the Nazis. We came to their aid, not the other way around.
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?????
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.
Still waiting to hear from the French about their war debt.
By standing true to their debt, they have proven that their honor is equally staunch.
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.
Wrong, right and 1/2 right
Germany repaid its war debt in 1960The 1953 London Debt Agreement, or the German debt
France never did.
Until we receive this final payment GB still owes us money.
Germany was the FIRST country to pay us back. And yes the terms were favorable, so were the terms we gave to everyone else.
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.
One of the only other country to pay us back from WWII is Taiwan.
Not to state that you are not correct, but why would a Japanese colony repay US WWII loans? Or did you mean the ROC?
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