WAR DEBTS

Hokitika Guardian, 27 May 1932, Page 5

WAR DEBTS

Payments to u.s.a.

ARE THEY TO BE RESUMED

(United Press Association —By Electric Telegraph.—Copyright.) LONDON, May 26. Tlie Foreign Secretary, Sir John Simon in tno House of Commons, confinned'ithe announcement of the impending' signature of an agreement w.ith tiio United States for repayment of tho amounts suspended in respect of tire British war debt to the United Sta teg. Under the moratorium, the normal debt arrangement would lie resumed after July 1, the lirst'contribution becoming due on December 15. The agreement regarding the suspended annuity is in no sense of the world a sequel to the moratorium arrangement, and merely stipulates the terms of repayment. These provide for repayment on a 4 per cent, basis during the period of ten years, and thus adds three million pounds annually to the normal debt repayments due over the period. The principle of the arrangement is the same as that applied by the London Conference of last August, when the situation regarding European inter-governmental debts was examined in the light of Mr Hoover’s moratorium. It was then decided that European debts suspended during the moratorium year should ho repaid by ten annual annuities from July 1, 1933, those to include both principal and interest. The 'German Government at the time pointed out that its acceptance of that proposal must not be taken as implying any expression of opinion upon Germany’s future capacity to pay.

.FOBETON MINISTER’S ‘ EXPLANATION.

Sir John Simon, in his statement in

parliament, and that under Mr lloov--ier’s proposal, all inter governmental payments in respect of reparations and war debts were supended for the period July 1, 1931, to June 20, 1932. It was agreed at the London Conference in August last that the amounts eo suspended should be paid by means of ten equal annuities as from July 1, 1933, with interest. Protocols were signed at the London Conference, providing for payment on the above lines of the amounts suspended in respect of the German reparation payments and war debts to this country. The • United States Government recently requested His Majesty’s| Government and dther Governments concerned to agreements regarding the amounts suspended in respect of war debts to the United States Government, and instructions had been sent to our Ambassador at Washington to compete and sign the agreement relating to the British war debt. Sir J. Simon added that this was a foraial step necessary in order to give legal effect to the other proposals and implied no decision on any question of principle.

THE MAJ -a QUESTION

I, NOT REOPENED YET. LONDON, May 25. “The Times” says' the present agreement does not in any way prejudice any suggestion or proposals about war debts, which may possibly be made before the next payment comes due. The request for ft businesslike definition of the terms of moratorium dess not warrant any inference as to the American attitude towards any such alterations, but until the Presidential election next November is over, and the United States returns to normal political life, there is no possibility of serious thought being given in America to comprehend the difficult problem of international debts. Meantime other Powers'can only endeavour to put their own house in order so far as is possible without American collaboration-

•V HIGHER PAYMENTS DUE. > —- LONDON, May 25. According to the Anglo-American debt funding agreement, the scale of Rritish payments rises in 1033, the eleventh year of payment, from 161,100,000 dollars as paid in the previous annual instalments, to 183,900,000 dollars. “The Tirnes’s” Waisbington correspondent, disem-ising the major war debt says: “What the American policy will eventually be depends upon Eur--„onc*. and upon the sense of realities ’(with which Europe will deal with question, s of land disarmament and repara,/t'Oiiis. If Europe should lad, the *|>ros|>cc't would he gloomy indeed, for ther?, are not forces enough in America to impair so disastrous a happening.

DISPLAY OF OPPOSITION ■ a '

TO RESUMPTION OK PAYMENTS

LONDON, May 20. Reference to the reports that Tlritain hn,s intimated her intention of resuming the va,r debt payments to the United States after the expiation of the moiratorii m, the Daily Telegraph . says: The CYbinct have not yet taken •. i a decision. There U a cleavage of opinion between the Government and ■ financial cire -s on this subject. The Cabinet may not attempt to reach any ' decision until after the Lausanne Conference. The “Financial News” forecasts the bitterest opposition from the whole na- *

lion uif'es'S the Government makes serious ellorLs to re-open the Ameriean delit .svLLlemeiil question. It status that repudiation oven partially, cannot be contemplated, but hope less acquiescence ip the existing disastrous svstem of war debts is a sign ol Lamentable weakness.

EXTREME MEASURES

TO SAVE MONEY. LONDON, May 20. j Sir T. In-skip (Solii ilor-Generao, Siam king at Putney, s*i*-i that a time was coming a lieu the politicians would have to undertake unpleasant and invidious Ins; s. They would have to impose mea..sires of retrenchment and of economy on the whole nation, lie ' said : “We ishall have to IRU our popularity, and even sacrifice our safety if, thereby we are to purchase the of the nations,”