FORMAL STATEMENT

Evening Post, Volume CXIV, Issue 126, 24 November 1932, Page 13

FORMAL STATEMENT

REASONS FOR REFUSAL

ALTERNATIVE TO CASH

(Received 24th November, 10.30 a.m.;)

WASHINGTON, 23rd November. In a lengthy formal statement following his conference with the Congressional loaders, both of the Republican and Democratic Parties, President Hoover declared that "as to the suspension of instalments due on loth December no facts have been presented by the debtor Governments which would justify such a postponement.". At the same time the President declared that a United States Commission should be created to receive suggestions on the war debt problem, "and to report to Congress such* recommendations aa they deem advisable." "I have stated on many occasions my opposition to cancellation,"' the President said. "Furthermore, I do not feel that the American people should be called upon to make further sacrifices. I have held, however, that advantages to us could be found by other forms of tangible compensation than cash, such as expansion of markets for products of American agriculture and labour. There are other possible compensations in economic relations -which might be developed on a study which would contribute to the recovery of prices and trade. Such compensations could be made mutually advantageous. These things might serve to overcome the difficulties of exchange in some countries, and to meet the question of inability of some of them otherwise to pay. It is unthinkable that within the comity of nations and maintenance of international goodwill our people should Refuse to consider the request of friendly people to discuss an important question in which they and we both have a vital interest, irrespective of. what conclusions might arise from such a discussion."

The Speaker, Mr. Garner, said at Press conferences on Wednesday that he thought that the Congressmen who had attended the Debt Conference with President Hoover had "convinced him that Congress at the present time would decline to create an agency to discuss debts with foreign Powers,"

Mr. Garner said: "There are three questions involved in the whole problem:—

1. Shall we cancel the debt? 2. Shall we reduce the obligations'? 3. Shall we have a conversation about them? '

"President. Hoover is opposed to cancellation, and is opposed to reduction, so what is the use to hold a conversation."