WAR DEBTS

Hokitika Guardian, 26 November 1932, Page 5

WAR DEBTS

CAN BRITAIN PAY

PRESS COMMENT

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

LONDON, November 25

While the rest of the press take the matter of the war debt to America calmly, the “Daily Express” and the “Daily Mail” says emphatically that it is impossible for Britain to pay the United 'States. The “Daily Express” in its editorial, asks: “How does America suppose that the payment can be made? By sending goods? The answer is that* America would refuse to have them. By paying in dollars? The answer is that Britain has not gat any. By paying in pounds? The answer is that America knows that if Britain tried, it would plunge, the exchange into chaotic dislocation. By sending gold? The answer is that it would mean a crisis and an act 'of Parliament. The effect upon world trade would be more disastrous for America than for us. Thus every door is closed. The American “die hards” have one shot left. ; lt Is 'make Britain bankrupt !' ” The “Daily Express” political contributor says: “Britain will not pay! She will not refuse payment, because she does not wont to pay, but because she cannot. It is believed that the British Treasury officials are aware of the fact, and that they are frankly .admitting that they are beaten by the situation, and that they have no solution to offer. In fact it is currently credited that the Bight Hon. Montague Norman (Governor of the Bank of England) has not any solution to offer. There are rumours of Cabinet dissention and that some of the Ministers wish to make payment, but the Cabinet knows full well that we cannot, pay.” These statements and arguments are printed! in large type, in double column in the main pages of the “Daily Express.” They are finding no echo elsewhere. ' ,

Possibly they will produce a political sensation to-day. .

A SEPARATE CONCESSION.

WHAT OFFICIALS HOPE,

LONDON, November 25. The British Cabinet meets on Monday to consider the debt situation.

In the meantime the American note has been circulated among the ‘Ministers.

. The Debt 'Committee of the Cabinet i meets to-day.

There was great activity, at "Whitehall yesterday. There were numerous conferences between the Ministers and their diplomatic and economic advisors.) '

has not been decided yet when Wt American Note is to be published, but presumably its publication will h© simuKhnoous in London and Washington. It may be delayed until there has been an exchange of further notes, which could enable the publications of the complete, correspondence.

The feeling in official. British circles remains hopeful There is one .passage in President-' Hoover’s statement which ha,s seemed to promise special consideration for such debtor nations as find the immediate transfer of the payment impossible, ■ or hurtful, owing to their depreciated. , currency. This passage is regarded, in most quarters, as being designed l to meet the British case.

One point is emphasised, and that is that no decision regarding payment or non-payment ■will be taken by the British. Government until an American reply to -the - forthcoming British note has been received.

further notes

BEFORE SETTLING DAY,

RUGBY y The reply of the United States Government to the recent British Note on war debts, has reached London. The terms of the reply have not yet been published l , but the views of Mr Hoover are publicly expressed in a statement issued at Washington. This declares that the debt agreemeht must be maintained in full- integrity, except as adjusted by mutual.,.consent. The dis T cussion would proceed under more favourable circumstances if the terms of the debt obligations were carried out, rather than supended prior to the discussion. When the terms of the American reply have “been fully conf sidered by Cabinet, little time will be lost in forwarding a- further comm!unica,tion to America. In (authoritative circles, the possibility of a suspension is not entirely ruled out of account. Mr Hoover’s observation, that no facts had as . yet been advanced by the debtor countries to justily a suspension of payments due on December 15, pending the outcome of negotiations on the whole debt question, i,s recognised as accurate. There can be little doubt tlvat the British Government will despatch a further >\ note to the United States explaining •’"' the reasons which prompted them to make the proposal, and thus follow the same procedure as adopted by the creditor Powers at the Lausanne Conference. Par's in support of the case for suspension are abimcßnt. Fluctuations in exchanges, and tho general disturbance in confidence, ryhieh nccompany the movement of, large cap-jt-nl sums, arc only two of which the' ywkl has recent experience. The