BUDGET AFFECTED

Hokitika Guardian, 9 July 1931, Page 5

BUDGET AFFECTED

BRITAIN SUFFERS LOSS.

PAYMENT ALREADY AJADE

(British Official Wireless.)

RUGBY, July 6,

The effect of the moratorium on the Budget of the acceptance of President Hoover’s proposal is being anxiously scussed by the newspapers. Air Phil Snowden, Chancellor of the Exchequer, has already explained that by the re mission of interest on debts in. favour of certain European States, andi tlio suspending of war debt payments by the dominions, tbe Exchequer will suffer a. loss of about £11,000,000. As one half year’s instalment of the annual payment to the United States on account of Britain’s debt to America ha,s already been paid, and the corresponding sum will not be received from rep rations, or m respect of debts due to Britain from Allied countries, tbe equilibrium of the Budget will he further upset. Provision bad been made in the Bud. get for the second instalment of the payment to the United States, amounting to about £19.000,000, and Air Snowden indicated that this sum would be devoted to the redemption of internal debt, without any counter-balancing receipts from other countries. QUESTION IN MOUSE.

The relation of the provisions of the Young Ulan to President, Hoover’s proposals was raised in the Mouse of Commons in a o.uestion to-day, when the Chancellor of the Exchequer, Mr Philip Snowden, was asked to state to what extent the plan wou’d be suspended, or modified, especially in regard to the supply of reparat on coal to France, Belgium and Italy, in the event of the suspension of the debt and reparation payments, as suggested by President Hoover.

Air F. AV. Pethick-Lawrcnee, Financ'd Secretary to the Treasury, said: “The British Government understands that the proposal made by Air Hoover is to involve the complete suspension for one year of all reparation payments, whether in the form of cash or in the form of deliveries in kind.”