BRITISH NOTE

Hokitika Guardian, 2 December 1932, Page 6

BRITISH NOTE

TO UNITED STATES. CBritish Officiul Wireless.) (Received this day at 1.30 p.m.) RUGBY, December 1 The British Government’s not© to United States takes the view that the ‘resumption of the war debts payments would intensify the world depression, vast requirements for war purposes far exceeding auy normal means of payment and: could only be financed by loans from producing countries.

' l.ioaus made to allies by United States, Britain and France readied the ecT.qsnl total of four thousand millions sterling. Since then the world had been living under repeated shocks, which/ completely •undermined 1 tile confidence' on which the system of private 1 investment depends. | Like the shells on which they were I largely spent, those war loans were blown to pieces' and produced nothing to 1 repay them in the long run. International debts can only be paid in the.form of gpdds or services. Tile drain on gold'reserves forced down the prices of copipiodities in terms of gold, causing widespread ruin to.producers in the debtor and creditor countries alike. It has- rcfidepekl intolerable the peculiar burden of unproductive war debts. Confidence -and credit cannot revive until,.,an end is put to these attempt's to force the .stream of capital uphill.. It will not profit the eredifor Y'pyntry to collect a,few million pounds or dollars if it thereby perpetuated the world disorder. It was in the power of the Governnients of the world 1 and particularly United States and Britain ,to unite in cooperation to make a first and essential step towards diverting disaster. The relative position is that United States made loans of 2055 millions and the United Kingdom made similar loans of 1600 millions. United States hqd received 434 millions and the United Kingdom nothing, having passed on all their receipts to United States, as well as 134 millions in addition j

Regarding the changes of circumstances which have increased the burden of. Britain’s obligations, it is pointed ovt the British debt is expressed in terms of gold, but the Vurden I on the British people ir, measured in terms of sterling. Consequently th 9 ’ payment due on December 15 is in- I creased from D)f millions to approximately 30 millions. J The debt represents to-day in terms of goods, not less than twice the . amount borrowed, while the American tariffs have ’restricted imports of | British manufactured goods. The total trade between the two ' countries • since the funding agreement has fallen ! from 30Q millions to 100 millions. \YCiVI I'/a«■ / rftV'l-i ..r