UK finally pays off wartime lend-lease bill

[Jim O]

Britain is to make its final payment on Hogmanay for the cash loans, oil, food, tanks, aircraft and ships it acquired from America to defeat Hitler under the allied lend-lease scheme in the Second World War.

The last £45m is to be handed over 61 years after Congress agreed to sell the huge amount of weapons and supplies already in transit at a 75% discount when the conflict ended.

Under a deal negotiated in 1945, the UK was given the go-ahead to repay outstanding loans over 50 years from 1950 at 2% interest, with the provision that some payments could be deferred at the discretion of the British government.

That discretion has been exercised six times, mainly because of unfavourable exchange rates and the state of UK gold reserves, delaying instalments on a total bill just exceeding £1bn.

The UK was given a five-year breathing space before payments started because the war effort against Germany, Italy and Japan had all but bankrupted the UK and the Commonwealth.

While most of the £20bn of equipment and munitions shipped across the Atlantic between 1941 and 1945 was effectively a gift, the US demanded basing rights in the Caribbean and Newfoundland in return for 50 ageing destroyers in 1940. The bases allowed Washington to extend its global military and economic spheres of influence and effectively curb that of the British Empire.

The destroyers were vital for convoy escort duties to counter the U-boat menace at a time when the Royal Navy was overstretched and the US had not yet entered the war as a combatant.

One-quarter of all munitions and aircraft used by British forces between 1941 and 1944 came from US factories, most of it given without charge to keep an exhausted UK in the war.

Lend-lease ended suddenly on September 2, 1945, and all subsequent shipments and loans had to be paid for.

A Treasury spokesman said: "We are currently receiving a greater return on our dollar assets than we are paying to service the war loans. It has, in recent years, been very advantageous to us."


Source: The Herald, Glasgow

[Hobilar]

Perhaps if they weren't spending 300 Billion dollars a year on armaments, they might at least be able to resist having to demand the last 45 million of an old debt in blood money.

You schiesters can have your cash back-Just don't ask us to fight your wars again.

[Jim O]

Touchy, aren't we? Rather be known as deadbeats? 61 years at 2% are terms I would take and happily pay back all. Take that from a real estate investor who lives on mortgage credit. And quoting from this UK site:

Under a deal negotiated in 1945, the UK was given the go-ahead to repay outstanding loans over 50 years from 1950 at 2% interest, with the provision that some payments could be deferred at the discretion of the British government.

That discretion has been exercised six times, mainly because of unfavourable exchange rates and the state of UK gold reserves, delaying instalments on a total bill just exceeding £1bn...most of the £20bn of equipment and munitions shipped across the Atlantic between 1941 and 1945 was effectively a gift...

One-quarter of all munitions and aircraft used by British forces between 1941 and 1944 came from US factories, most of it given without charge to keep an exhausted UK in the war.

Most of what was sent was never paid for. The US tax payers paid for the British war effort, even before we were allies.

Originally Posted by Hobilar

Perhaps if they weren't spending 300 Billion dollars a year on armaments...

How the US spends US money is frankly none of your concern. Paying your debts is. Get over it. Of all people, I would think that you would refrain from such comments after the post you made about Sheriff Joe Arpaio.

Originally Posted by Hobilar

When Sheriff Arpaio starts paying British Taxes he will be entitled to have his say regarding whether prisoners in British Gaols should have their own Television sets in their cells, and be entitled to be properly clothed and fed.

Seems a bit of practicing what one preaches is in order here.

[Hobilar]

He! He! Well we just have to stir things up a little every now and again. If you knew the British at all you would realise that we just can't help interfering in other people's politics (after all we have been doing it for hundreds of years). Perhaps we just enjoy winding up the Americans from time to time, just to see what 'Hot under ther Collar' reaction we can get.

[Jim O]

Originally Posted by Hobilar

He! He! Well we just have to stir things up a little every now and again. If you knew the British at all you would realise that we just can't help interfering in other people's politics (after all we have been doing it for hundreds of years). Perhaps we just enjoy winding up the Americans from time to time, just to see what 'Hot under ther Collar' reaction we can get.

Not at all "hot under the collar". Just telling you to mind your own business as you have suggested in your own "hot under the collar" rant earlier. I have no issue with the terms Britain was given but I should expect that they would indeed want to honor that small obligation as a matter of national pride.

FWIW, I happen not to agree with many of the current administration's foreign and domestic policy, tax, and budgetary decisions. That's why I wil exercise my right to vote in the midterm election 11 days from now (I don't think I've ever missed a contested national election since I turned 18).

[Hobilar]

Don't tell me to 'Mind my own business' whilst there are British Servicemen fighting and dieing in America's wars in Iraq and Afghanistan. What affects you, affects all of us.

[Jim O]

I will tell you exactly that, and to stop whining about it. As I recall, the British Parliament approved those forces. Sorry, don't blame America for the decisions of your elected officials, unless you are saying that your government is a puppet of the US, which I am quite certain is not the case.

You're welcome to criticize American foreign policy if you like, but I was specifically referring to your criticism of US defense spending vis-a-vis Britain's lend lease obligations. How US tax dollars are spent is frankly none of your concern. Now get this...just like your comments about Sheriff Joe Arpaio, when you pay taxes here, you are entitled to comment on how taxpayer money is spent here. Until then, mind your own business. It is none of your concern.

[barrett.t]

I am British and I will always be grateful for Americas help for without it we would have lost. I am also thankful for the generous terms and the will that came with it. If it was not for dead Americans amongst others on the Normandy beaches the nazis would have shot me for being a Marxist or Stalin would have, for not being the right socialist. We are able to debate these issues because of the brave men who laid down their lives and the generous taxpayers in away payed for the right to free speech even if we vehmently dissagree. That's the democratic way