Good for us! UK pays off lend-lease debt

OK, not quite yet but by the end of the year.........

Britain owes its survival in the second world war to many causes. A standard list might include the bravery of our Battle of Britain pilots, the leadership of Winston Churchill, the resilience of the people - and the sacrifices of the Red Army. But there is little doubt that Britain would not have survived without lend-lease either.

Between March 1941 and September 1945, the United States' lend-lease programme transferred some $48bn worth of war material to other nations, the largest part of it (worth some $21bn) to Britain. This was an enormous sum, nearly equal to an entire year's UK gross national product. But it came at a price and the Americans drove a hard bargain. At one point Washington pressed for the transfer of the British West Indies in return. Though that proposal fell through, Britain did agree to give up the rights to and royalties on innovations such as radar, antibiotics, jet aircraft and nuclear research to the US as part of "reverse lend-lease". And when the war was over, the Americans handed in their bill.

source

So it was a big price tag, but it was desperate times and the US admin and people helped stop us going under to the Nazis. Many thanks USA. And thanks to Gordon Brown too. Not that much of a fan of his myself, but IIRC, he doubled the repayments on lend-lease in his first budget as CoE. A good move which has paid off

posted by ridcully: “OK, not quite yet but by the end of the year . .

Britain owes its survival in the second world war to many causes . . the bravery of our Battle of Britain pilots, the leadership of Winston Churchill, the resilience of the people - and the sacrifices of the Red Army. But there is little doubt that Britain would not have survived without lend-lease either. - The Guardian

The story about Lend-Lease on this side is that FDR concocted this scheme to avoid the restraints imposed by our “Neutrality Act” which our Congress had passed earlier. So the transfer of property was done by ‘lending’ it or by ‘leasing’ it. Understandable terms to the penury Congress. Don’t forget that the US had suffered great economic setbacks from 1929 to 1941. I’ve said all that to say this, I was unaware that the UK was to pay this back.

Between March 1941 and September 1945, the United States' lend-lease programed transferred some $48bn worth of war material to other nations, the largest part of it (worth some $21bn) to Britain. This was an enormous sum, nearly equal to an entire year's UK gross national product. But it came at a price and the Americans drove a hard bargain. At one point Washington pressed for the transfer of the British West Indies in return. Britain agreed to give up the rights to and royalties on innovations such as radar, antibiotics, jet aircraft and nuclear research to the US as part of "reverse lend-lease." When the war was over, the Americans handed in their bill.

It was desperate times and the US people helped stop us going under to the Nazis. Many thanks USA. And thanks to Gordon Brown too. Not that much of a fan of his myself he doubled the repayments on lend-lease in his first budget as CoE. A good move which has paid off. [Edited by Don W]

Well, if re-paid annually from 1950 to 2006 at the same rate as the final payment of 45 million Pounds Sterling - the pay-back totals 2,520 million pounds or as we say over here, billion. This translates into $4.635 billion at the current 1.83 dollars to one pound rate. I guess if we “corrected for inflation” it would be a rather tidy sum. I think when I was a child, the pound was quoted at $6. It has gradually declined and the last "fixed" value I recall was $2.40 per pound sterling. In the early 1970s. But as Calvin Coolidge said, “The business of America is business.”

I suppose as between nations, especially friendly nations, a good account must be kept. Under our current government, the US debt limit was raised recently to $9 T. so any help we can get will be greatly appreciated by our grand-children whose future we are mortgaging to sustain tax cuts for the R&Fs. Rich and Famous. And to let us “enjoy” to the utmost our little War on Terror. Done on the American Plan, enjoy now, pay later.


[edit on 5/5/2006 by donwhite]