AUSTRALIA’S WAR DEBT

Hokitika Guardian, 25 March 1931, Page 5

AUSTRALIA’S WAR DEBT

SUM OF £89,000,000 MAY BE CANCELLED. SYDNEY, Alarch 15. It will not occasion great surprise in Australia if there is lound to he some justification for a statement by Alt' Eldridge, ALTER., in Sydney last week-

end that a simultaneous announcement by the Commonwealth and Imperial Governments would bring Australia relief from the payment of her war debt. Air Eldridge said that he had been in communication with members of the Imperial Parliament on the question, and events had recently moved in a manner which suggested that lii.s efforts and the efforts of others would he successful. He hoped that the people of Australia would soon receive a pleasant surprise.

Australia’s war debt to Britain amounts to £89.000.000, and tile annual interest and sinking fund charges total £5.000.000. According to the story, of which a few of the members of Parliament claim to have knowledge, Australia would have been relieved of this war debt, last, year but for i,lm fact that provision for the pay* inept of interest, und sinking fund bud been made in the last British Budget. One Federal meinher, a staunch supporter of Alt' Scullip. said the other day that 0110 of the Prime Minister s chief regrets over the repudiation policy adopted by the Labour Government in New South Wales was that it had complicated the negotiations with the British Government.

The negotiations so far have been carried out with the greatest secrecy according to well-informed circles, and it is not expected here that Australia will receive preferential treatment over New Zealand and the other British Dominions. .Mr Sculiin may fear the effect of the Hast Sydney by-election, hut it does not seem likely that this Labour victory, which was expected, could influence a decision on such a vast issue. It is more likely that both Governments are waiting a convenient time to announce the far-reaching decision. It is held here that the attitude of the British Press towards Australia—sympathetic in the extreme —indicates that a concession to Australia is likely.