U.S. REPLY

Hokitika Guardian, 28 November 1932, Page 5

U.S. REPLY

REQUEST REFUSED

MONEY MUST BE PAID

(British Official Wireless.)

bo; RUGBY, November 25.

The reply of the United States Secretary of State to the British Note {in 2 .war oehts has been issued as follows: . (voViyoun (present suggestion for a ge«oflnaltreVitew goes far beyond anything ri Qonten&ifilafed or proposed at any time in the past, ether by'-Mr Hoover or this Government, and even tl.e suggestion quoted in your , nots was not adopted by the Congress of the United States. In view of these facts and in the light of the historic position of the United States that reparations are solely a European question, in which the United States is not involved, I am sure that no inference can be intended that the settlement of German reparations at Lausanne was made in reliance upon any commitments given by this Government., y “I appreciate the importance of the step taken by the Governments at Lausanne in respect to reparations and the possible effect upon those creditor nations'of the loss of that source of. income.- I am not oblivious to the fact that world-wide depression ond> the concurrent fall in prices has increased the weight of debts in many parts of the world, nor to the fact that the decrease im international trade haw increased the difficulties of obtaining foreign exchange. I also recognise the relation which these facts may bear to the process of recovery.: Oh the other hand, it must be remembered that these’i-incidents of the depression have also fallen with great weight upon the American people, and' the 'effects upon them directly as taxpayers, or otherwise, of any modification of the agreement with respect to the debts due to this country cannot be disregarded. “I confess that I'cannot see any presentation in your note which would be likely to induce Congress to act upon the question-any differently now from the principles upon which it acted in the past.

“The attitude of the President, therefore, that for any suggested study of inter-Governmental financial obligations, as now existing, some such agency as I have referred to should he created to consider this: question individually with sncl/ ‘Government ais heretofore. The Pre.-ident is prepared to recommend to Congress that it constitute this agency to examine the whole subject.

“As to £he : smsmebsion oTThe instalment of the. British debt due on December 15, which was one of the objectives of your ilot©; no authority lies within the executive to grant such an extension, and no facts .have been placed in our possession which could be presented to Congress for favourable confederation. Such inmportanee is attached by our Government and people to the maintenailce of the original nereements in full by the payment on December 15 as to far outweight any reasons now apparent 1 for its suspension, and by such jgayments the prospects of a satisfactory approach te the whole question, in my opinion, will be greatly increased.”"

REQUEST TO U.S.A

MR MACDONALD’S PLEA

LONDON; November .25

Mr MacDor'ald, speaking at Retford, said“ After Lausanne' we approached America and asked her to join in 'studying the whole' question of war debits. We h'ave asked no cancellation, or reduction. Wie have asked nothing hut that the legal debt payment be postponed while views were exchanged. Wei believed that suspensi<yif: would be good for th© business of all nations, including America. We believe ,in discussing the situation ■rationally and deprecate any passionlate controversy on either side of the Atlantic. We believe that if a real effort is made together a solution can be found, enabling December 15 to be passed and the problem to be further examined.”

A DELICATE QUESTION

PAYMENT OF WAR DEBTS,

RUGBY, November 25

The subject of the United‘'States v ote w'-s referred to at Bb-minohnm this afternoon by Mr Neville Chamberlain, Chancellor df the Exchequer, who said that the decision which must he taken was one of the most difficult and delicate which it had ever fallen to the lot df anv Government to take. the policy of the country with regard both to Reparations and War Debts had been that' all should be wiped out. They went to Lausanne end therd "c'aire to certain agreements tfh ; at all Reparation payments should be suscendled. ' -

“We never contemplated a state of things in which we might lie asked to make payments equivalent to another shilling; in the £ on our income tax, while at the same time we were receiving nothing from our debtors. That alone, from the point of view of justice and the possibility of mamtni"ing our industries, would he absolutely insufferable.”

PREPARING REPLY. MR MACDONALD BUSY. (Received this day art 9.30 a.m.) LONDON. November 27. .Mr Ramsay MacDonald ami other , i'*V ! •

Ministers are busy to-day preparing a draft reply to United States. This will be ready for Cabinet on Monday. Tt is believed the reply will he an impressive document, practically a manifesto, which it is hoped will result in a modification of America's attitude. It is understood that Government recognises clearly that llle present issue is not the debt itself, hint the one.stion of the December payment. Tt holds strongly that payment will prove disastrous to the payer and the receiver alike. The best city opinion stresses the (•-...( f]mt n moratorium i« only a subsidiary issue, and unless it- is followed by a drastic debt revision, Britain will TMvikahlv be compelled fo default in 1932, nnd Germany will force the issue by declaring a complete moratorium.