The Hawera Star. FRIDAY, JUNE 16, 1933. WAR DEBT AGREEMENT.

Hawera Star, Volume LIII, 16 June 1933, Page 4

The Hawera Star.

FRIDAY, JUNE 16, 1933. WAR DEBT AGREEMENT.

Delivered every evening by 5 o’olook in Havvera, Manaia. Kaupokonui, Otakeho, Oeo, Pihama, Opunake, Normanby. Okaiawa, Eltham, Ngaere. Mangatoki, Kaponga. Awatnna, Te Kiri, MahoeLowgarth, Manutahi. Kakaramea, Alton. Hurleyville, Patea. Whenuakura, Waverley, Mokoia, Whakamara, Ohangai, Meremere, Fraser Boad and Ararata.

By President Roosevelt's acceptance of Britain’s offer of £2 millions “on account,” the state of tension which slowed up the proceedings of the World Economic Conference at the very beginning* of its session lias been, relieved. The flood of words let. loose upon this situation, both in negotiating the deal and in comment upon its achievement, .provides a classic instance of the circumlocutory methods necessitated by the democratic form of government. To-day the cables are full of congratulatory speeches by statesmen, and newspaper praise of American “generosity.” The importance of the occasion is not to be and or-rated; the world can well congratulate itself upon the businesslike handling of the .situation by the British Government on the one side and the President of the United States on the other. But thinking people will not allow themselves to be blinded to the facts of the position by the chorus of official praise now being sung. The situation has been well summed up by that irreconcilable Labour member, Mr Maxton, who says, “We have simply induced a creditor to take something on account and obtained six months' time in which the debt cam be fully discussed.” That statement has the downright quality of Lord Snowden’s utterances; it pierces all the win-dow-dressing and states a palpable fact in plain terms. Recognition of the bare facts does not ) of course, detract from the merit, of the achievement, so far as the/ principal negotiators are concerned; it. merely brings out into the open the clumsiness of the methods necessary under a system of government in both countries which has to be careful not to get too far ahead of public opinion—or which, when it does so, has to make a pretence of bowing to that opinion. There is no doubt that a man who can express himself as did President Roosevelt in his inaugural speech has no difficulty in recognising the justice of Britain's claims in the matter of war debts; but ho cannot declare himself too openly on that score until Congress opinion is ripe —an'd Congress must make its show of studying the interests of the elector until such time as the latter is convinced that debt readjustment is .not only just, but necessary in his own interest. Britain was originally determined not to pay this instalment on the grounds that “it would mean that no progress whatever had been .made towards settlement of the war debt issue.” It was recognised by the British Cabinet at the last minute, however, that such a stand would embarrass the President of the United 'States; cries of “default” would arise in Congress against Britain and every effort made thereafter by Mr Roosevelt to come to an equitable arrangement with that country would be suspect. Great Britain, or an other nation, cannot afford to Jose the effective influence IScing wielded on American opinion by the President; therefore it was a wise move to offer £2 millions in silver in lieu of £ls millions in gold now due. In the eyes of the American public this action keeps the debt alive; it does not pla.ee a great .drain on Britain's financial, resources for the time being, but it preserves her credit and smooths the path for further negotiations with America, Viewed in this way,'shorn of the trimmings of diplomatic eloquence, it seems a puerile situation to develop in the midst, of a conference called to save civilisation from disaster, but civilisation is, for the most made up of democratic constituenties; and democracies, like children, have to be nursed.