PRESENT POSITION

Evening Post, Volume CXIV, Issue 126, 24 November 1932, Page 14

PRESENT POSITION

DIFFICULTIES DOUBLED.

LORD READING EXPLAINS

(British Official Wireless.)

(Eeceived 24th November, 1 p.m.)

RUGBY, 23rd November,

Reference to the war debts situation was made by Lord Heading, who has just returned to London from a private visit to the United States, in a speech at the English-speaking Union last night. He said that Britain's proposal for a postponement of American debt payment on loth December was as important for America as for Britain. When the agreement was made, no one foresaw that fourteen years from the Armistice we should be in our present position, and no one could have forptold that the'world depression would have been so great and critical as it had been during, the past two or three years. Under .the AngloAmerican Debt Agreement', Britain paid more than any other country and forewent the greater portions of the debts due to her from other countries, claiming only that she should receive from them sufficient to enable payment to be made to the United States. . '

He-made not the slightest criticism or complaint of what 'had happened in America, but he did want everyone to bear in mind that no one could have foretold the present position. \A debt could only be paid by gold or by goods and services. Gold was scarce save in those localities where it was quietly and safely accumulated in a hole. If payment could not be made in gold, the problem arose of payment by goods and services, and there they were met with manifold difficulties. 'if they took the value of goods and commodities at the time settlement was made, it took at least twice the amount of goods to-day to pay the same amount of, money. Therefore the burden was at least twice as great to-day as it was then.

"When, the debt was fixed at a certain sum, it was believed Britain would bo receiving reparations and would be paying America what was received. There was now no, question of getting reparations and he asked America to remember that Britain was receiving no payments at all. The only question involved at present was whether the payment due loth December should be postponed until therjs had been an opportunity of discussing with America the present situation and of coming to