DEBTS BETWEEN NATIONS

Hawera Star, Volume LIII, 16 June 1933, Page 5

DEBTS BETWEEN NATIONS

INFLUENCE IN WORLD PLIGHT

BRITISH NOTE TO AMERICA, />

REASON FOR FART PAYMENT.

EFFECTS ON CONFERENCE

(United I'ioss Association- -jy Electric Telegraph Copyright.)

RUGBY, June 14. “The treatment of inter-Government obligations must closely affect the solution of the problems with Avhich the World Conference lias to deal, because they cannot be;.separated from the influences which have brought the Avorld to its present plight,” .states the last British Note to the United States.

“For instance, it is generally agreed that one of the first and most essential aims should be to increase the general level of commodity prices. It may ho recalled that after the Lausanne Conference there was a marked tendency for prices to. rise, but this tendency was reversed when the prospects of a final settlement of inter-governmental obligations receded, while the December payment avUs accompanied by a sharp fall in prices which was felt in America at least as much as in Europe. Experience therefore appeals to show that the effect of these payments upon prices is very direct. “The United Kingdom Government had hoped the United States Government would have been able to accede to the request to postpone pa.yment_of the June instalment pending a discussion of Avar debts as a Avhole. Since this does not appear to have been found possible His Majesty’s Government is Obliged to decide its course of action. Such decision must in any case be of an extremely difficult character, as in considering it His. Majesty’s Government has felt its deep responsibility, not only to it® own people, but also to the whole world, which is awaiting the deliberations and recommendations of the conference Avith the utmost anxiety. “The conclusion at Avhich Hi® Majesty’s Government has arrived is that payment of the June instalment could not be mad© at this 1 juncture Avithout gravely imperilling the success of the conference and involving widespread political consequences of a most serious character. In its view the instalment should be considered and discussed as part of the general subject of Avar debts, upon which. it is anxious l to resume conversation® as soon as can be arranged.” In order to make it perfect! y clear it did not regard the suspension as prejudicing an ultimate settlement the Government then submitted the . proposal Avhich Mr Roosevelt accepted.