From the BBC Web Site. 29.12.06

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.


_________________
Merdeka, Merdeka, Merdeka,
from the HD Committee and its decision.

I am afraid that if the truth is known our 'great ally' in point of fact is responsible for the deliberate destruction of our country and it's empire.

The lend lease scheme was a huge money making enterprise as far as the USA was concerned which they cut off abruptly at the wars end leaving us destitute, something that they never did to our enemies. We then had to negoitiate a massive loan in order to survive and it is this that has just been paid back. They donated their wealth to those that they had defeated. The americans never wanted the British in charge of their troops and the most costly cock ups of the war were as a result of poor american leadership or jealous rivalries. Anzio, Omaha, Arnhem were all resultant from bad american planning and generalship whilst in most cases those responsuible took no blame for the thousands of lives needlessly lost.

There was and is a huge amount of hatred in the US amongst certain circles for the English and whilst the ordinary american seems to be very friendly, never trust their political classes with your back.

John