Post-war loans finally paid off
 

http://uk.news.yahoo.com/28122006/32...war-loans.html

Amazing!

Would you like a receipt for that?

I wasn't aware of the 1946 loan to Britain but did discover that, in 1943, Canada made a $1 Billion gift to the UK - this was to allow the UK to buy war material in Canada and was administered by the Mutual AId Board, Canada's equivalent to US Lend-Lease.

My Essay
 

http://www.gmhistorian.btinternet.co...IANDOLLARS.htm

may explain further, BUT I had no idea about the Canadian post-war loan either! As to where the money went, blame the Labour Government under Clement Attlee of 1945-50. Instead of using the money towards post-war reconstruction, we wpent it on nationalistion of the coal, transport, steel, railway, industries, plus waterways and docks, and also the National Health Service, the Welfare scheme (payments for poor, unemployed, etc.) and other social projects. However no-one thought through about how the money was to be repaid, in dollars, and the interest on top. Compare this with the later Marshall Plan that benefitted the rest of Europe, plus the UK indirectly, but financed exports from the US to Europe bypassing British industry.