ROOSEVELT ACCEPTS PART PAYMENT OF DEBT

Hawera Star, Volume LIII, 15 June 1933, Page 7

ROOSEVELT ACCEPTS PART PAYMENT OF DEBT

RESULTANT SITUATION NOT DEEMED DEFAULT

Clear-cut Acknowledgment of Obligation Involved

Invitation Extended to Washington Discussion

(United Press Association —3y Electric Telegraph Copyright.) Received 2.45 p.m. to-day. LONDON, June 14,

A Washington message says that President Roosevelt announced to-day a ten-million dollar payment by Britain in respect to the June instalment of the war debt as an “acknowledgment of debt pending a final settlement.’’ Britain had asked for a review of the debt agreement and he suggested that she send representatives to Washington to discuss this as soon as was convenient.

“In the spirit of co-operation I have noted the representations of the British Government in respect to payment of the instalment inasmuch as the payment made is accompanied by a clear acknowledgment of the debt itself,” said Mr Roosevelt, “In view of those representations and of the payment I have no personal hesitation in saying that I dp not characterise the resultant situation as default. Beyond this the law and the constitution do not permit me to go.” Continuing, Mr Roosevelt remarked: “The Economic Conference does not include consideration of war debts in its programme. The American delegates were instructed not to discuss them with representations of the debtor Governments. This is in accordance with the principle that debts should be considered on their merits and separate from other, international economic questions.”

The British and American Notes on the debt instalment are being issued in a White Paper.

In the House of Commons Mr Neville Chamberlain, the Chancellor of the Exchequer, speaking on the motion for adjournment, explained it had been impossible hitherto to arrange simultaneous announcements in London and Washington. When the December payment was made Britain had sought an early exchange of views with a view to a conclusion of the discussion before the June instalment became due. If Britain had paid the full June instalment she felt it would appear there was no reason why she could not pay indefinitely. This seemed impossible in view of the Lausanne provisional agreement suspending the debts due to Britain. Further payments would therefore be necessitated, ending the Lausanne agreements and reopening the vexed questions of reparations and war debts and plunging the world again into the uncertainty and despair from which it was rescued by the Lausanne Conference. These considerations seemed to outweigh all others.

On the other hand the British Government felt the strongest objection to any course placing it in the position of having to repudiate obligations. Its view of the proper way to treat the June instalment was to consider it merged in the body of the debt, whereupon the Government was prepared to enter formal negotiations as soon as eould.be arranged.