Debt coercion would probably delay a naval treaty rather than immediately halt British construction. G3s, N3s, Japanese capital ships, and American programs could all be farther advanced by the time another administration reopened negotiations. France and Italy might damage their own finances while trying to keep pace. Britain could draw on Dominion loans, gold, and other imperial resources to settle immediate obligations. The United States would then face a more expensive naval race and a lasting British determination not to depend on American credit again.
Notable Point · 1:20:40-1:22:39
How debt coercion could delay the naval treaties
Pressing British war debt might postpone treaty negotiations long enough for G3, N3, Japanese, and American construction to create a costlier settlement.