Britain to make its final payment on World War II

LONDON: Britain will transfer £43 million to the U.S. Treasury on Friday, the final payment on a debt used to finance the World War II defeat of Adolf Hitler and Nazi Germany.

The U.S. extended $4.34 billion in credit in 1945, allowing Britain to stave off bankruptcy after devoting almost all its resources to the war for half a decade. Since 1950 Britain has made payments on the debt, the final payment of which is worth $84 million, at the end of every year except six.

At the time it was granted, the loan strained trans-Atlantic relations. British politicians expected a gift in recognition of the country's contribution to the war effort, especially for the lives lost before the United States entered the fight in 1942.

"The U.S. didn't seem to realize that Britain was bankrupt," said Alan Sked, a historian at the London School of Economics. The loan was "denounced in the House of Lords, but in the end the country had no choice."

At the time it was granted, the loan strained trans-Atlantic relations. British politicians expected a gift in recognition of the country's contribution to the war effort, especially for the lives lost before the United States entered the fight in 1942.

Although I'm with you on the sentiment, who decides ultimately what constitutes a decent governement? I mean, I could do it but I've a lot of other stuff on my plate at the moment.

George decides. We know that already. I just wished he would find a cheaper and tidier way of sorting out his "issues" 'cos it really is getting a bit messy these days.

Britain will today make the final payment on a multi-billion-dollar loan it took out in 1945 to refinance the country in the wake of the Second World War.

In a transaction that will draw the curtain on the devastating economic consequences of the bloodiest conflict in modern history, the Treasury will transfer £43m to the US and £12m to Canada.

The original loan of $4.34bn - equivalent to £27bn today - was made to avert Britain from bankruptcy at the end of the war rather than to finance the combat itself.

The Government hailed the repayment as a sign that the UK repays its debts - although the reality is that Britain has a patchy record on debt repayments.

Ed Balls, the Economic Secretary to the Treasury, said: "This week we finally honour in full our commitments to the US and Canada for the support they gave us 60 years ago.