Britain finally pays off World War Two loans
Thursday December 28, 06:35 PM

http://uk.news.yahoo.com/28122006/32...war-loans.html

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.

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Sounds like Britain got a discount to me.

Later

U R Evil!

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Great now I can pay less tax, hang on is that a flying pig I see.

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Regards, Richard

Someone's got to pay for the next lot of wars....

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"Stand by to pull me out of the seat if I get hit" - Guy Gibson

Good point Martin.

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Regards, Richard

Don't understand the "evil" thing. If you take a serious look at the numbers over the years I think they did and I also think that it was a mutually good arrangement even though really we lost money over time.

Later

a nice piece of info there thanks,,,something i'd never really thought about...but shows that certain aspects of ww2 were still ongoing...karlo

If we are to look at these loans, we should start from ww1 loans onswards thru to Lend Lease, and the massive loan that replaced them immediately after ww2. The National, strategic, and international consequences to the UK and others becuase of them. I would suggest for a deeper insight into the loans and one that might shock many for a start of discussion on a topic as big as this and one that produced immense consequences, one could start with the chapter devoted to them in Collins 20th Century history. The loans effects were more than just a helpful hand in ww2 by an ally.

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Prepare to repel borders.
William L. McGonagle, MOH, U. S. Navy, Commanding Officer, USS LIBERTY 1967.

This really is interesting.

Britain was the real looser of WW2 in a sence. Bankrupted, war weary and the Allies stole their thunder.

In Norway we lost a lot of old infrastructure in the 1940 campaign, but Herr Hitler decided after the Archery raid that Norway was a 'destiny' area. With Russian POW's and Norwegian labour roads were built, and some heavy industry was expanded. (aluminum for example had a massive boost)

In addition the large merchant marine serving the Allies, brought hard currency to the nation.

Rebuilding the nation after WW2 went smoothly compared to many other countries.

The notable exeption wast the Northern part of Norway. It was flattened. The Germans burned everything. My relatives in the North have absolutely NOTHING older than 1948. They were chased out of their homes with nothing more than what they could carry. All else was burned to the ground.

I don't know how much we loaned from the US. But the Army have been a regular customer from the US industry. Only small arms have been bought from Germany (after all they DO build the best) We have had F-5 and later the F-16 fighter. Now we are part of the US Fighter programme too.

The winner of both wars have been the US. Economically strenghtened and laurels on top.

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'We march. The enemy is retreating in transport. We follow on foot.' Lt.Neil McCallum 5/7 Gordons 19th November 1942