Britain finally pays back loans...better late then never.

[Wagner]

http://www.cnn.com/2006/WORLD/europe...eut/index.html
---

LONDON, England (Reuters) -- Britain said it will on Friday pay back the final installments of loans taken out at the end of World War Two to finance vital reconstruction.

The payments of $83.25 million 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 honor 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 honor our commitments to them now as they honored 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 program.

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.

[Scottie]

I'm saying nothing.

well I could but no I will resist.

[E61Silver]

Originally Posted by Scottie

I'm saying nothing.

well I could but no I will resist.

Guess you could say that it was a world war and the lend lease program was nothing but politics.

Did the Kuwait pay us for our last effort in the Middle East?

[B&DCalgary]

Congrats to Great Britain. It's probably the first time in history a country has ever paid off a war debt. Good on ya

[AzNMpower32]

Doesnt the US have some huge debt also? I wish we could pay it off and also erase the stinkin trade defecit. Then maybe the US Dollar would actually be worth something............