United States Loans (Hansard, 26 May 1952)

§ Mr. Paton

asked the Chancellor of the Exchequer if he will state the amounts received from United States Governments by British Governments since 1914, in the form, respectively, of loans, Marshall Aid, and actual and projected grants for defence aid; the total sum of loans repaid and of loans still outstanding; the total of interest paid on these loans and the

LOANS AND GRANTS FROM THE UNITED STATES GOVERNMENT TO HER MAJESTY'S GOVERNMENT FROM 1ST APRIL, 1914, TO 10TH MAY, 1952
Million U.S. dollars
			Loans
			Received	Repaid	Balance Unpaid	Interest Paid (b)
1914–18 War Debt	…	…	4,806 (a)	438	4,368	2,116
1945 Line of Credit	…	…	3,750	44	3,706	75 (c)
Lend-Lease Settlement Loan (d)	…	…	622	27	595	12 (c)
Marshall Aid	…	…	337	—	337	—
Mutual Security Aid	…	…	48	—	48	—
Total	…	…	9,563	509	9,054	2,203

		Grants
		Received	To be Received (e)
Marshall Aid (f)	…	1,836	5
Mutual Defence Aid	…	23	99
Mutual Security Aid	…	17	235
Total	…	1,876	339

Notes

(a) Includes $529 million accrued interest capitalised under 1923 funding arrangements.

(b) Interest is payable on the amount of these loans from time to time outstanding as follows:—1945 Line of Credit and Lend-Lease Loan; 2 per cent. per annum as from 1951; Marshall Aid and Mutual Security Aid Loans 2½ per cent. per annum as from 1952 and 1956 respectively. In 1957–58, the first year in which a full year's interest will fall due to be paid in respect of all these four loans, the total interest due will be $90 million and the amount will decline annually thereafter.

(d) The net difference between the amounts recorded by the United States and United Kingdom as the value of their shipments to each other under Lend-Lease and Reciprocal Aid arrangements was about $10 billion in favour of the United States. The $622 million was a final settlement for Lend-Lease and Reciprocal Aid, and also covered the net difference between the amounts of goods and services supplied by each Government to the other through Lend-Lease and Reciprocal Aid channels after the end of the war with Japan, and the sum due to the United States for its surplus property in the United Kingdom acquired by the United Kingdom. In addition the United Kingdom has a liability to repay to the United States 88 million oz. of silver received during the war.

(e) Balance not yet received of allotments already made.

(f) Excluding $530 million conditional aid received under the Intra-European Payments Agreements and European Payments Union Agreement.

(g) Excluding supplies of arms and defence equipment from the United States Government under the Mutual Defence Act and the Mutual Security Act, and receipts from the United States Government in reimbursement of United Kingdom gold and dollar payments to the European Payments Union arising from the use of sterling balances by net debtors to the Union.

120W

annual sum of interest on these loans still being paid; the amount of Marshall Aid given as loans and the value of Marshall Aid provided as gifts; the amount of Marshall Aid given as loans that has been repaid and the annual interest to be paid on Marshall Aid loans still outstanding.