U.S. LOAN FOR FRANCE

Chronicle (Levin), 30 May 1946, Page 5

U.S. LOAN FOR FRANCE

AGREEMENT REACHED Received Wednesdav, 7 p.m. NEW YORK, May 28, Bringing to a cliinax eleven weeks of negot iations, Leoii Blum and the Secretary to the .Treaury,. M r. Ered \'insou, signetl a cmnpreh'eusive economie aud finaiicial agreeinenl under vvhieli the I'nited States extends to France 1,370,000,000 dollars credit to lielp her begin a four years ' reconstructiou prograinme. The credit is divided into two sectious. l-'irstly, there will be a direct loun of (550,000,000 dollars from the Export and Import Bank. Secondly, there will be a line of credit totallnig 720, 000, 000 dollars which will penuit the Freiu-h to settle tlieir Lend-Lease nccount. and purchase United States Army and, Navy surplus goods in France aud French overseas territories. The larger credit will bear 2 per cent. interest. Repaymeuts of both interest and principal will begin 011 July 1, 1951, with repayments to be completed by 1981. Part of these payments will consist of 15,000,000 dollars worth of real estate aiul 10, 000,000 dollars worth of francs whieh the United States will use to buy and iniprove reaT estate or carrv out " eclucational progrannnes. " The United States agrees to pay 17,500,000 dollars to cover clainis arising from the operation, disposal and loss of French vessels under Ameriean control. This presumably includes the loss of the Normandie. 'J'he connnercial agreement provides that France will not incj'ease tariffs above the prewar rate aiul also abandon the prewar import quota and price equalisation politics. America has agreed to survey the possibilitv of amending laws at present restricting import s from France. France has I agreed to introduce a lilm quota system replacing the present restrictious | 011 Ameriean iihns. French cinenuis will in future be required to show French ! (ilms for four weeks in three months but a free show if French or imported iihns the remainder of the time.

The United States has promised to grant France additional credit with wliich to purchase 750,000 tons of Ameriean-owned mercliant ships. The credit agreements, handled Llu'ough tiie Government 's Export and Import Bank, are therefore unlike the British credit. It does not have to be approved bj* Congress.