British Finish Repaying U.S. Loan To Fight WWII




 
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British Finish Repaying U.S. Loan To Fight WWII
 
December 29th, 2006  
Team Infidel
 
 

Topic: British Finish Repaying U.S. Loan To Fight WWII


British Finish Repaying U.S. Loan To Fight WWII
Arizona Daily Star (Tucson)
December 29, 2006
By Bloomberg News
Britain will transfer $84 million to the U.S. Treasury today, the final payment on a debt used to finance the World War II defeat of Adolf Hitler and Nazi Germany.
The U.S. extended $4.34 billion in credit in 1945, allowing the U.K. to stave off bankruptcy after devoting almost all its resources to the war for half a decade. Since 1950 Britain has made payments on the debt at the end of every year except six.
At the time it was granted, the loan strained trans-Atlantic relations. British politicians expected a gift in recognition of their contribution to the war effort, especially for the lives lost before the U.S. entered the European conflict in 1942.
"The U.S. didn't seem to realize that Britain was bankrupt," said Alan Sked, a historian at the London School of Economics. The loan was "denounced in the House of Lords, but in the end the country had no choice."
The loan was double the size of the U.K. economy at the time.
"It was vital support which helped Britain defeat Nazi Germany and secure peace and prosperity in the postwar period," U.K. Treasure ministed Ed Balls said in a statement from the Treasury. "We honor our commitments to them now as they honored their commitments to us all those years ago."
December 29th, 2006  
phoenix80
 
 

Topic: UK settles WWII debts to allies


UK settles WWII debts to allies



Britain needed money for reconstruction and importing food


Britain will settle its World War II debts to the US and Canada when it pays two final instalments before the close of 2006, the Treasury has said.

The payments of $83.25m (£42.5m) to the US and US$22.7m (£11.6m) to Canada are the last of 50 instalments since 1950.
The amount paid back is nearly double that loaned in 1945 and 1946.
"This week we finally honour in full our commitments to the US and Canada for the support they gave us 60 years ago," said Treasury Minister Ed Balls.

"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.

The last payments will be made on Friday, the final working day of the year.

Deferred

Under the lend-lease programme, which began in March 1941, the then neutral US could provide countries fighting Adolf Hitler with war material.
The US joined the war soon after - in the wake of the attack on Pearl Harbour - and the programme ended in 1945.

Equipment left over in Britain at the end of hostilities and still needed had to be paid for.

The US loaned $4.33bn (£2.2bn) to Britain in 1945, while Canada loaned US$1.19 bn (£607m) in 1946, at a rate of 2% annual interest.
Upon the final payments, the UK will have paid back a total of $7.5bn (£3.8bn) to the US and US$2 bn (£1bn) to Canada.

Despite the favourable rates there were six years in which Britain deferred payment because of economic or political crises.

There are still World War I debts owed to and by Britain. Since a moratorium on all debts from that conflict was agreed at the height of the Great Depression, no repayments have been made to or received from other nations since 1934.

http://news.bbc.co.uk/2/hi/uk_news/6215847.stm
December 29th, 2006  
Team Infidel
 
 
already posted this
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British Finish Repaying U.S. Loan To Fight WWII
December 29th, 2006  
Rob Henderson
 
 
And we're still in the hole...Nice to see they keep to their word.
December 30th, 2006  
Englander2
 
President Rosevelt said in 1934 "Germany must be forced into starting a war." Using money from England and the goodwill from Chuchill, Poland provoked Hitler into doing just thisin 1939. The lives lost, both American and English can never be recovered, but it was a great business for many manufacturers. Nice to see that we British have been paying ever since for a war most people did not want!
January 1st, 2007  
Gator
 
 
The US is nearly 9 Trillion dollars in debt, I wonder if England will give us a loan? Iraq is very, very expensive after all.
January 1st, 2007  
The Cooler King
 
So what... we are only in debt to ourselves. If we don't pay up, what are we gonna do? Break our own thumbs?
January 1st, 2007  
tomtom22
 
 
It's a wonder they are still paying the debt considering that they are mothballing their own Navy:
Half of UK Royal Navy "to be mothballed"
 


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