WAR DEBTS

Hokitika Guardian, 15 November 1932, Page 5

WAR DEBTS

BRITAIN & FRANCE

REQUEST A REVIEW.

(British Official Wireless.)

RUGBY, November 12

The belief that the regime of interGoyernmental financial obligations nimst ha reviewed, is expressed in the note handed rby tne Bi'itiilA Ambassador at (Washmgton (Sir it; Lindsay) to Mr Stimson. Tihe British Government ask that meanwhile,, payments ;of the British avar debt be suspended and the United 'States winter into an exchange, to ■hasten the restoration of world prosperity. Th e full terms, ;of • the. note are:—

It will be remembered that on June 22, 1931, HigMajesty’s Government subscribed wholeheartedly to the principle of the proposal made by the President of the United States, on the preceding day, for. a- postponement during one year, of all payments 6n imter- Go vernmmetanta 1 debts. 'The object, 'as stated at the time, was to relieve the pressure and difficulties resulting from th& fall in price*, and lack of confidence ,in ecoatomic, and political stability,, and to resist in the. re-establishment. of . confidence, The hopes, whidh ’.were early raised by the President's -initiative, have unfortunately, not been realised and the economic troubles it was designed to f,deviate, have not c°m& to an end. In deed, in October last year, a communique published in Washington on the occasion of M. Laval’s visit, already recognisedthat prior to the expiration of thp Hoover year gome

agreement ou inter-Govem-mental obligations may ib e necessary, covering the period 0 f business,, depression. The initiative in this mattef should, be taken early by •■■the 'European , Powers principally... concerned, within the framework of the agreements ' existing prior t-o July 15, 1931.” ' " ■ ""

“To-day, many , thoughtful men throughout the world, aye convinced that if the depression is .tn be Overcome, further remedial measures, must be sought. It is in accordance with the above recommendation,. in' . June last that ''the European -creditor {Powers met at Lausanno to .agrbe on a lasting settlement of tlhe problem created by inter-goyernmental payments in respect to reparations. A (series ,of agreements reached on June 9, aim s at the ultimate termination of all reparation payments. represents the maximum contribution in the field of inter-governmehtal finance, which the governments’ concerned, .so far have been able to make towards that early restoration of world prosperity, in which the people of the United States, mo less than tho-e of the Britielh Commonwealth of ‘Nations, have :so deqp an interest, and for the achievement of which, the co-operation of the United States is essential.' It is not proposed now to .say ..more than that, in the recent past, the Brit ; &h Government have frequently expressed this view, ’and that neither in the realm of theory, nor in fact, are they rlble to find any reason for amending it. They believe that the regime of inter-governmental financial obligations, as now existing, must he reviewed. They are profoundly impressed with the importance of acting quickly, and they earnestly hope that the United States Government will ee© its way to center int 0 an exchange of views at the earliest possible moment.” “.The immediate objective of the .present note, however, is of a more limited nature. On December 15 next, the instalment of the Briti-h war debt is due to bo paid. It is not possible to hope that any agreement can be achieved in five weeks, on

matters of such vast scope. Confronted, last summer, with a similar diffidulty, the' conference at' Lauranne found it necessary, ih order to allow its work to proceed’ undisturbed,, to reserve during ' the period of the conference execution of the payments 'due to the participating Powers. The British Government ■hope that similar procedure, may now be followed and ask for a' suspension of payments due from them' for- the period of discussions how suggested, or for any other period that may be agreed upon. The ’‘British' Government believe that. the proposed discussion could best begin in Washington, but on this point, as well' as on the others touched upon in tl*e present note, they await the expression of the views of the United States Government.” THE FRENCH NOTE. REQUEST FOR SUSPENSION. WASHINGTON, November 13. The French note on debt. s proposes that the United States and French Governments should join in a “further istudv of the debt question,” and that, an the meantime, an “extension of the suspension of payments” may be granted. The note added that the Government of France believes “that such a step 'would have a most helpful effect on the monetary crisis which threatens so many nations.” The 1 French Government states lhat it was “seriously' concerned with IHe effect which problems ■arising from inter-Gove-mnental debts are having on the world-wide depression,” and deems it of vital importance to approach the Government of the United states, asking at to cooperate in examining the question in a