WAR DEBTS

Hokitika Guardian, 25 November 1932, Page 5

WAR DEBTS

A BRITISH NOTE

EFFECT OF PAYMENT.

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

WASHINGTON, November 23., Regarding the debts to America, an intimation has com© thorn London that the British Government does not believe that the door is irrevocably dosed against a further Anglo-Ameri-can discussion on the' advisability of thp pos pone- cent of the payments This intimation has been sympathetically received in Washington.

It is expected that there will -be a new British note, which will inform President Hoover, in detail, of the conditions that- necessitate a postponement, and that the presentation of the facts of the question will open immediately after the old Congress -reconvenes for its last session. LONDON, November 24. President Hoover’s statement is not regarded in British Government circles a s being unsatisfactory. It is realised that the door is not closed to further discussion.

It is understood that a'further British note will be prepared and despatched immediately, giving facts and figures supporting the British case, The position is regarded as being open until this document is considered at Washington. '

It will bo necessary that the Washington Government should consider the International effects of the transfer of twenty-eight millions sterling across the Atlantic, while- the British Government must study the reaction of such a transaction on the financial position (here, seeing that provision for this payment was not made in the last British Budget. AIR CHAMBERLAIN’S HOPES

An important statement, regarding the British request to United States for the provisional suspension of war debt payments, pending discussion, was made by- Air Neville 'Chamberlain.

He said that there was n° doubt that the. similar .suspension of -reparation payments which was agreed upon by the -delegates from the creditor Government Wat Lausanne, had an immediate effect of -steadying public opinion in .all the financial centres of Europe, and that it assisted to create conditions favourable for the final agreement reached there. then, th© confidence born ot that settlement and .the knowledge ijjhat no further transfers across exchanges -in respect of reparations will be required to increase, and it seems to us important, in the ii ;er&st,s not only of this 'country, but of the world generally, that it should not be dis. tur-bed at the beginning of a discussion which, eve hope, may prove advantageous to both parties engaged in it. We have not yet received any doubt that, in replying to our proposal, the American Government wih boar in mind the eons! derations I have mentioned.-’'

THE TRADE ASPECT,

TAXATION I > STEAD OB OO - CESSION.

RUGBY, November 23. Mr Amery said it was not beyond our capacity to meet our obligations to the United States, if we had courage to take th e necessary unpleasant steps. We were i.r©e both of f ree trade and the gold standard. We could pay the thirty million s in gold, which were only kept in the Bank of Englaud as a tribute to an old -superstition, then give notice to terminate the AngloAmerican commercial treaty, in order a year hence to, impose special tariffs on United States goods, payable in gold or dollars, or listen to counterproposals. The “New York Times” declares: “Unless in ' his hour the Englishspeaking natUns of the world stand together, new dangers lie ahead. We must do our part, particularly in our attitude toward a nation which has shown gallantry and fortitude with its own titanic problems, and high consideration for our own political difficulties and economic burden s.’ - The “New York Herald Tribune’ - says : “Americans are so accustomed to having Mr Hoover do the right and courageous thing that hig admirable statements on the war debts will hardly occasion much surprise.”

EFFECT OF U.S.A. TAXPAYER

WASHINGTON, November 24

Regarding the war debts, it is estimated that if the payments du e in the present fiscal years are cancelled, it would only increase the per capita tax burden of the United States 220 cents, as compared with approximately to 315 cents per capita decline in the United 'States customs revenue during the past two yeans, due to a drop in foreign trade that was in n 0 small part attributable to war debt inequalities.