FULL PAYMENT

Hokitika Guardian, 26 May 1932, Page 5

FULL PAYMENT

OF WAR DEBTS

BRITAIN MAY RESUME.

(United Press Association. — By Electric Telegraph.—Copyright.)

LONDON, May 25,

There are persistent rumours that th e British Government, intends to resume its war debt payments, to the Unite-' iStal.cs, besides repaying the debt that has accrued during the Moratorium period, in' tun yearly, instalments, with' four per cent, interest. Referring to the rumours, the “Financial News” e-ays; Assuming that this information is correct, it means that tho attempt to ©stabli-h a united European front will have been trustra ccd, and the chances ol the Lausanne Conference succeeding will have been further d ! minished.

The “Financial News’’ adds; “Although it had been understood that a| strong section of the Cabinet, headed by Mr Baldwin and Mr Chamberlain, have favoured resuming the war debt payments to America on December 15th, it was believed that Mr Ramsay MacHour; 1 d and other Ministers, who wished to negotiate for a r«vision, would have their way. This decision on the part of Britain is calculated to make it difficult for the, French and Italian Governments to agree to any reduction in the German payments. If Britain is prepared to continue th© war debt payments in full, there is no likelihood of any concessions, being made by the United States to France.and Italy.” ■

PAYMENT TO AMERICA

LONDON. Mnv 24

The “Sun” representative learns tint Britain M arranging to pay. the U.S.A., besides the former annuities, a further annus.! sum to make up .for the suspended Hoover year .-payments. This would automatically involve the Dominions in the resumption of" payments. ’

■Meanwhile Britain faces the interim budget. It is believed that the' Government is preparing to effect economies of at least £50,000,000. .

Newspapers significantly support the Conservative Parliamentarians. who are'urging the Government to introduce further rigorous economies. It is generally telieved.,qthat- the position, is so serious that only such economies, and increased- taxation can meet . the situation.

ADDITIONAL TAX PROSPECTS

CAUSING; ALARM JN CITY

(Received.,this .day at P.25,,a..mt

LONDON, May 25

The city is alarmed at the prospect of additional taxation-if Britain resumes her full payments to America, when there is little prospect of collecting reparations or -full payments from France and Italy. The "Financial News” forecasts the bitterest opposition from the whole nation unless' the Government makes serious efforts to re-open the American debt settlement question. It estates tb'if repudiation, even partial'-ry, cannot bo contemplated but hopeless aconisenco in easing the disastrous system of war debts is a -sign of lamentable weakness.

The. ‘‘Daily Herald” says that Government circles are discussing the introduction of a new economy bill in autumn, -saving £69,000,000 to £IOO,■000,001) yearly. Among the economies mentioned is the reduction of £4,000,000 in war pen-ions.