WAR DEBTS

Hokitika Guardian, 14 November 1932, Page 5

WAR DEBTS

NOTES TO AMERICA

BRITISH POSITION REVIEWED.

(United Press Association—By Electric Telegraph—Oopyri ght)

WASHINGTON, November 12,

Air Stimson (United States Secretary) to-day admitted •Hr W. Lindsay (British Ambassador) ,cij live red a British . note yesterday regarding wui debts,’ A' note 'from France was delivered to-day. Hr o aid neither would be phhljshecl for several days. Apparently he is awaiting Mr Hoover, who is scheduled to arrive on Tuesday. The U.S. State Department to-day announced that the British and French war debt notes would'be published on Monday morning. Thus the Department is not waiting .Mr Hoover's arrival.

Furthermore, according to information from - California, Mr Hoover ip. delaying his arrival for one day in order to visit the Government irrigation project at Boulder Dam. Apparently he does ndt consider the matter so- pressing as was earlier indicated. He has twice talked to pfficials at Washington by telephone, but has reserved his public comment. It is authoritatively understood that no communication'' regarding the question has been sent to Mr Roosevelt, who is iat present at Albs, ly, slightly indisposed with a cold. It is pointed out? that any move in the direction of co-operation during the interim before Roosevelt’s inauguration must come from Mr Hoover, who, according to-rumour,s, believes that the entire matter, excepting temporary measures in reference to the December 15th payment, should be left to the new Administration. It is generally believed here that no more notes will be forthcoming. It is expected that the other debtor nations will await action on the "feelers” put out by Britain and France, t

The press reaction to the” debt postponement negotiations is generally a conservative one. It has been realised for some time that such negotiations would be opened as soon as the election wa.s over.

However, the strongly nationalistic Hearst newspapers have opened a vigorous attack. They are openly insinuating that there- has been a plot between thg European Governments and the Washington Administration to keep this matter in abeyance until after the elections. The “New York Hemld-T¥ibune.” : in a leading article, savs; “The complete cancellation of the Allied' war debt, s is no more desirable' than the complete cancellation of the German reparations, 'but an adjustment of the wav debts to accord with the Allied capacity to pav them is as necessary and as unavoidable as the adjustment of the reparations finally proved to be.”

The "New York Times” view® the situation as technically the same a° formerly with the 'Congressional representatives pledged against cancellation, hut it al9o sees a great shift in public opinion towards a nitre lenient attitude.

Regarding tihe nuestion of the European debts, to U.S.A., Senator Borah, r>« expected. has taken the lead in an mformtal discussion. He has issued a ■statement calling for, in effect, a complete re-arrangement of international policies as the basis of a further agreement.' He declared that, otherwise “postponement is only another name for cancellation.” Viewing tbie matter in broader sense, he d°id : “Tim policies which made the postponement necessary will destroy civilisation if continued. The fact that Britain feels unable to pay at this tim e is of Httie moment, com oared with the question of why she TecTs"unable to pay. Fourteen years have passed since the war, and such has been the effect of ths policies pursued thlat proud Britain feels she cannot pay her obligations in small sums of ninety-five million dollars. It seems to 'be that the proposal to postpone the payments without some assurance of a programme changing the policies heretofore obtaining is an incomplete proposal. It ,seems to me it should jbe aocompainied by a programme giving some assurance that things will 'be different from this time on.” He expressed the opinion that Britain’s present difficulty would continue indefinitely unless radically rem'edied. Tie also mentioned tHe economic difficulties of America, and concluded ; “Tho policies which have forced nations close to bankruptcy are policies which, have forced the people of those nations close to bankruptcy.

■REQUEST FOR POSTPONEMENT

SENATOR BORAH’S OPINION

(Received Oris day at 9.30 a.m.)

WASHINGTON, November 13

The notes from England and France on the war debts brought a statement from Senator -Borah, chairman of the Senate Foreign Affairs Committee on Saturday night that policies which have made th e postponement necessary will destroy civilisation if they are continued.

Mr Borah .said that proposals for postponement and moratoriums should be accompanied by a programme which iwill give some assurance that things will be different from this time on. “If Great Britain cannot pay at this time without imperilling the economic fabric of t;..e world she will be far less able to pay, without even greater consequences, in the future unless the

whole international programme 13 changed. ’if policies, which have been pursued si ace the war, are to continue, then postponement is another 'word for cancellation.”

BRITISH DEBT TO AMERICA.

RUGBY, November 11

In the absence o l ' other arrangements regarding the war debt payments temporarily suspended under the Hoover Moratorium, Britain will be under an obligation to resume payments to the United States on December 15. The amount due on that date consists of £13,469,178 at par on account of interest and £6,164,383 at par ,011 account of principal.

Newspaper despatches from Washington state that all official comment on the question of the British debt payments is being rigidly withheld and it is anticipated that there will he no comment, until the incoming and outgoing Presidents of the United States meet in conference, probably in the latter part of next week v

FRENCH OVERTURES TO U.S.A.

PARTS, November 11

It is understood that France, following Britain, is approaching America regarding her debt repayment, which is duo on December 15.

M. Malvy, president of the Chambre’s Finance Commission, is privately visiting London. It is believed that he is discussing the extension of the debts moratorium and the holding of a general debts conference.

The amount' due to the United States on December 15 is 19.()r0.000 dollars. Another 60,000,000 dollars is due ' on June 15.

FRENCH NOTES REQUEST

'PARIS, November 13

The From h note to America requests the extension of the moratorium, and the re-nooning of the debts question. Tt considers this would favourably affect the world, monetary crisis.