Comments by "Steve Valley" (@stevevalley7835) on "The Drydock - Episode 152" video.

  1. Returning to the question of the UK selling it's West Indies colonies to the US in exchange for the US canceling the UK's debt from WWI, which I brought up in the Q&A on the shore bombardment video of May 12th, I have done further reading on the WWI debt issue. The UK had made substantial loans to it's allies prior to US entry in April 1917. From that point on, the US bore the financial burden. As it worked out, the amount owed to the UK by the other allies was almost equal to the amount the UK owed to the US. On August 1, 1922, Arthur Balfour wrote a note to the French ambassador to the UK, words to the effect that the UK did not want to lean so heavily on France, and the other allies, for repayment of their debts. The UK would rather cancel all the debts owned to it, and forego reparations from Germany, but, as the US was pressing the UK so hard for repayment, the UK needed the cash. The content of this note was publicly published by the UK government, which, to me, gives the note the color of an official offer by the UK government to cancel the war debts owned to it, if it is relieved of it's debt to the US. As noted in my May 12th question, extrapolating the price the US paid Denmark for the Virgin Islands to the total land mass of all the UK held islands, plus British Honduras, comes out to $4.15B, which equals the $4B of principle owed, plus a portion of accrued interest. What a different world it would have been, had the UK, effectively, paid it's debt to the US with dirt, rather than gold, and, in accordance with the Balfour note, then cancelled all debts owed to it, cutting the debt, and corresponding drag on the economies of the other allies, in half.
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  3.  @Dave_Sisson  The US taking over all the West Indies colonies would require some artful spin. The US had prohibition at the time, and a significant industry in the West Indies, particularly Jamaica, was rum production. Puerto Rico had been defined as part of the US, and Puerto Rican citizens as citizens of the US by the Jones Act, so Puerto Rico had prohibition, but the US apparently did not impose prohibition in the Philippines. The Caribbean was pretty much an American lake anyway. The US invaded Haiti in 1915, and invaded the Dominican Republic and Mexico in 1916. Cuba? The US invaded a second time in 1906. The US intervened in Central America so many times that British Honduras would have been an exceptionally handy base. Besides, from my readings, by 1920, British Honduras had more trade with the US than with the UK. The West Indies were not particularly of strategic value to the UK, as most of the UK's colonies are around the Indian Ocean, but the West Indies are on the US' doorstep, and control access to the Panama Canal. I added a postscrip to my question in the post last month: there was a lot of chatter in US newspapers at the time about what a great deal it would be for the US to swap the IOUs the UK had written for the islands, but Lloyd George said no, Harding said no and the Prince of Wales said no. I wish I could jump in the WABAC machine and ask why they were against it. It's not like the UK never gave up a territorial claim before. There was a lot of trading real estate back and forth when the border between the US and Canada was set at the 49th parallel. The US had been buying land from other powers since 1803. I don't understand what the problem was. I would jump at the chance to pay a debt with dirt, instead of gold.
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