DEBT PAYMENTS

Hokitika Guardian, 26 June 1931, Page 6

DEBT PAYMENTS

FRENCH ATMOSPHERE

APPRECIABLY EASED

[United Press Association —By Electric Telegraph—-Copyright. ]

PARTS, June 24

The atmosphere is appreciably eased by the American Ambassador assuring the Premier that the urgency of the German crisis forced Mr Hoover’s hand. There was no intention to overlook 'France, who actually was the firstcountry consulted from Washington. M. Briand, in the forenoon, had a conference with the German Ambassador, after which the French reply was cabled to Washington.

Meanwhile the press unanimously' insists that France must not agree to violation of the unconditional payments, which are sacrosanct, under the Young Plan.

SPANISH ACTION

■MADRID, June 24

Cabinet is installing a wireless equipment in order to broadcast Parliamentary debates.

It is also reinstating railwaymen dismissed in the 1917 general strike, and dismissing soldiers who came to the country’s aid since, and carried on.

.GERMAN WARNING

BERLIN, June 24

Herr Bruening broadcasting expressed the 'Government’s' gratitude at Mr Hoover’s proposal but warned the German nation _ that it he American plan would not end all its troubles. The 'Government, had resorted to hard measures and would stick to them, because • u without reparation payments exceptional efforts wo fad be required to get through the next eighteen months. He would welcome the opportunity of discussing the whole position with French statesmen.

BRITISH CHANCELLOR. AFFIRMS ACCEPTANCE. DOMINIONS CAN POSTPONE PAYMENTS. RUGBY, June 24. An important statement was made is the Commons by Mr Philip Snowden, who stated that the British Government’s policy was to give practical effect to Mr Hoover’s proposal. The Government was offering the Dominions and India the same war debts concessions as Mr Hoover had proposed for foreigners. He felt he was interpreting country’s wishes freely in deciding to offer the Dominions the option of postponing the whole of their war debt payments to Britain for a year, beginning on July Ist. next. (Loud cheers). This would mean a, budgetary loss 'of approximately eleven millions, but it was hoped that the revival of confidence and prosperity would more than justify the sacrifice.

'Mr- Snowden said: “As the Prime Minister informed the House on June 22nd., the Government of the United itingdom subscribe whole-heartedly to the principle of Air Hoover’s proposal , and is prepared to co-operate in elaboration of the details, with a view to giving it practical effect without delay I should like to take this opportunity to, explain the steps we decided to take for this purpose. The more consideration we give to the President’s declartion the more it seems to us that having regard particularly to the history of the matter, tliat the declaration constitutes a very great gesture on the part of the United States, and it will be a thousand pities if Europe does not respond to it in the same spirit. The beneficial effect of the proposal may he lost unless steps are taken by all the countries concerned to give it prompt and practical effect. This is particularly the case as regards Germany, which after all, is the essential difficulty. We agree with, thb view expressed by the United -plates Government that there is no tioie for a conference. Alor© prompt method must he found for putting into operation the proposal of the United States Government for a complete and immediate suspension ot German payments to the creditor Governments. The procedure which we would favour is that creditor Governments should forthwith notify the Bank for International Settlements that they agree to the proposal for suspension for one year of all German payments due to them. The decision does not rest with us alone, and we are awaiting the views of the other creditor Governments, but *we hope it may he possible to secure an agreement on these lines. as soon as possible. 'Air Hoover’s proposal applies, however, to all inter-government debts, reparation and relief debts. The British Government for their part accept this proposal in spirit as well as letter. They accordingly will be ready to suspend for one year all such inter-gov-ernmental debts due to them as soon as Mr Hoover’s proposal had been generally accepted, and in the meantime, as from July 1, they will refrain from claiming instalments that may fall due. As regard relief debts His Majesty’s Government at once, are taking steps to inform the other European Governments which hold relief bonds, of their action, and will invite them to co-operate. Mr Baldwin, on behalf of the Conservatives, said he would content himself with saying that the Government had taken a course fully consistent with the dignity and reputation of our country.

Air Lloyd George said he was very glad the Government had given this complete courageous and unequivocal answer to the very noble gesture of the United States.

'" Replying to Sir' Austen Chamberlain, the Chancellor said he would make a statement later, as to how the budgetary proposition in the country would be affected by the Government’s policy. “Nobody in this country will grudge such a gift to our great Dominion for such a cause,” says the “Daily Mail,” referring to Mr Snowden’s statement. The “News Chronicle” says: Mr Snowden’s courageous, wise announcement will he received with satisfaction and relief in the Dominions, and will he endorsed here. At the same time it is necessary to recognise that it will involve a new burden on the British taxpayer.

ITALY’S ATTITUDE,

NEW YORK, June 25

The State Department lias been informed by the United States Ambassador to- Italy, Air Garrett, of Italy’s acceptance of 'Mr Hoover’s moratorium proposal. Air Garrett states the acceptance was cordial and complete and without any reservations of a political nature.

BRITAIN’S AVELCOAIE

VERY HEARTY

LONDON, June 23

The British Government’s cordial acceptance of the broad principle of Mr Hoover’s proposals, announced by the Prime Minister in the Commons, was to-day handed to the United States Government by the British Ambassador at Washington (Sir Ronald Lindsay). Speaking at the American Chamber of Commerce luncheon at London, Air. Thomas said the magnificent action or Air Hoover showed that lie and fus people were not only alive to the economic factor, but also the psycnologioal factor. He could do no otner at that American gathering than pay a tribute to the wonderful gesture which was the first really practical step towards a world recovery. “But don’t let us fool ourselves,” Mr Thomas continued, “by assuming this is the one key. Do not 100 ua miscontinu© the situation by assuming that all is now well. There are still many difficulties to get. over. There must be other moves, and those moves 1 believe are inevitable.”

The U.S.A. Treasurer, Air Nelson, who visited Cambridge to see his son receive his degree, of Bachelor of Arts, was himself the recipient of a distinction.

DOMINIONS’ SHARE,

LONDON, June 25

“The Times,” in a leading article, says: “Though the internal war debts of the Empire have hitherto been regarded as purely a domestic matter, the Government has very properly refused to treat the Dominions with less generosity that foreign debtors, thus making the total sacrifice one of eleven millions. This is a notable examine to set to the debtor nations.”

French optimism

STOCKS SOARING. PARIS. June 25. The quotations on the Paris Bourse continue to soar. The explanation of this appears to lie in a confident belief that the Ereucli reply to Mr Hoover will not invalidate the Young Plan, and also that a real era of prosperity is about to dawn. Advices from Borin indicate that that has been only slight surprise at France’ conditional acceptance of the Hoover proposal. This was-lolly anticipated by the press.

THE FRENCH REPLY. WASHINGTON, June 24

A French Note on the reparations has been received to-day. It lias so modified President Hoover’s proposals as to appear to be disappointing and not acceptable in its present form. It is understood that France wants the uun-postponable reparations to be paid into a World Bank and the money loaned back to Germany.

France wishes that no precedent shall he set for the suspension of the Young Plan.

President Jloovefs advisers, however, are inclined to hoiiiwe that a coinpromise will be reached, assuring the putting into effect of a moratorium

The Secretary of State, Mr Stimson. made a statement to-day that is regarded as a friendly gesture towards I'Vance, indicating that America will agree to some change in the details il the basic nature of the Hoover proposal is accepted.

GERMANY’S INDEMNITY

LENT BY CREDITORS. *

LONDON, June 25

The “Daily Telegraph” says:—The Banks of England and of France, the American Federal Reserve Bank, and the International Bank have lent the Reich s' Bank (Germany! twenty millions sterling to meet the German payments due a the end of fliis month.