WAR DEBTS READJUSTMENT

Evening Star, Issue 21746, 14 June 1934, Page 9

WAR DEBTS READJUSTMENT

AMERICA'S OFFER TO BRITAIN REPLY TO JUNE ROTE Pres* Association —By Telegraph—Copyright WASHINGTON, June 12. Replying to the British war debts Note of June 4 the United States Government to-night suggested that offers would be considered for a readjustment of the debt or repayment in goods and services. A Note to the British Ambassador (Sir Ronald Lindsay) from the Secretary of State (Mr Cordell Hull) set forth three points in reply to the British Note. They were : (1) Britain would have to pay only the amount of the June 15 instalment to avoid being considered in default under the Johnson law. (2) There was no connection whatever between the debt owed the United States by Britain and those owed Britain by other countries. (3) The United States Government would he glad* to entertain proposals for cither a readjustment of the debt or payment in goods and services. The Note stated that the British Government undertook to borrow under its own name and on its own credit and standing, and repayment was not contingent upon the fate of the debts due to the British Government. After explaining this the Government interpreted the recent British Note as indicating that the British Government did not intend to make any further payments until the United States had scaled down the debt to a point acceptable to Britain. The Note said: “Should His Majesty’s Government wish to put forward proposals for a resumption of payments this Government would be glad to entertain and discuss them informally. For instance, no proposal has ever been presented to this Government looking towards payments in kind to an extent that might bo found mutually practicable and agreeable. Any proposals of this or a similar nature which promise mutual benefit will be carefully considered for eventual submission to the American Congress.” The. Note concluded with a quotation from President Roosevelt’s recent message to Congress in which he said that , the United States had no desire to overburden her debtors, hut that it was in a just position to ask that substantial sacrifices bo made to meet these debts The Note said that the United States was aware of the heavy wartime expenditures by Britain, of the burden of taxation borne by the British people and the transfer difficulties involved as outlined in the British Note, but added that it was unable to concur in the conclusion drawn. PAYMENT IN KIND RUBBER-AND TIN SUGGESTED. WASHINGTON, June 12. The resolution introduced in the Senate a fortnight ago by Senator Tydings, a Democrat representative of Maryland, would authorise the President to make a lump sum gold settlement of tho debts due from all debtor nations or accept partial payment in kind in goods and services, as suggested in today's American Note. Some observers pointed out that Britain controls the world’s supply of rubber and predominates in tin production, and predicted that an arrangement might bo made under which the British could repay part of the debt in those raw materials. FINLAND tO PAY IN FULL WASHINGTON, June 12. The United States war debt Note to Britain makes no reference to any possible goods and services which might be accepted in lieu of cash. France’s official notification of default was received to-day. It is now believed that only Finland will pay in full on June 15. Italy wil perhaps make a token payment. PRESIDENT'S GUARDED STATEMENT WASHINGTON. June 13. (Received June 14, at noon.) President Roosevelt is willing to consider payment in goods by countries owing war debts only on a partial basis, he declared to-day. Discussing the Note to Britain pertaining to payments due on Friday, President Roosevelt emphasised that the Note was simply a reply to the British communication pointing out a way of payment rather than making an offer. CONSIDERATION BY BRITISH CABINET VARIED OPINIONS IN AMERICA. (British Official Wireless.) RUGBY, June 13. (Received June 14, at noon.) Tho United States Government’s reply to the recent British Note on war debts was handed to Sir Ronald Lindsay yesterday, and was considered by tho British Cabinet at its usual weekly meeting. The reference in reply to payments in kind attracts most attention both in America and Britain, since it is the first occasion on which the United States Government has .indicated its willingness to accept payment in kind, and, incidentally by so doing, has recognised the transfer problem. Press messages from Washington record varied opinions by Congressmen on the suggestion. Senator Stephens (chairman of the Commerce Committee) is reported to Favour acceptance of commodities, provided they do not coin-

peto with domestic production, or increase unemployment. Mr H. Uaincy (Speaker) , thinks the suggestion tlie best yet made. Mr W. Hill thinks the process of transferring to and from priviite ownership for Government accounts would be very complicated. Senator A. Robinson thinks that American industry and workers would be penalised, and that the scheme is not practical. Senator Borah thinks it requires further study.