Britain pays 1945 war debt

The Times ^ | 12/24/06 | David Smith

[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.

[peyton randolph]

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.

[ARE SOLE]

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.

[Irish Rose]

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.

[kinoxi]

Evil Americans doing nasty sort of things on Christmas as usual Eh?

:)

[ozzymandus]

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

[beelzepug]

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

[kinsman redeemer]

Ping-a-Ling

[kinsman redeemer]

Ping-a-Ling

[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.

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.

[ARE SOLE]

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.

[mamelukesabre]

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.

[t_skoz]

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.

[kinoxi]

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

[Freedom4US]

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.

[preacher]

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

[starbase]

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!

[LFOD]

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.

[SkyPilot]

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.