SECOND DEBT NOTE

Hokitika Guardian, 3 December 1932, Page 5

SECOND DEBT NOTE

THE MAIN POINTS BRITAIN’S NOTE TO U.S.A. (TTnit*!d Press Association—By Electric Telegraph—Copyright;

LONDON,' December 1. Britain’s second war debt note to America is one of the most momentous since the war, and is regarded as a masterly effort. The note makes a strong point that no paymehts should be asked before discussions begin. It . is known that Whitehall 'has taken great pains to avoid anything provu-

cative, though showing the American taxpayer that he is not asked to bear greater burdens or sacrifices than Briain’s have already undertaken,, and likewise dispelling the American delusion that if the slate were to be wiped clean, Britain’s would come out with an even beam, if not actually in pocket.

The answer thereto is the cold fact that the British nation is two hundred millions out of pocket now as the result of a generous policy to debtors. Strong emphasis is laid on the des» truction of the Lausanne Agreement if the payments ate reserved with inevitable calls .on France, Italy and other European nations to meet their obligations to Britain, while the Dominions, having t 6 pay Britain, will have necessarily to ask for a resumption of the reparations, due to them. The most striking point in the note is a warning to the American primary producers that if the payments are resumed it will necessitate Britain taking measures to restrict American imports, particularly farm products, for which Britain is their best customer.

MR BALDWIN’S REFERENCE.

URGE TO BRITISH PUBLIC. RUGBY, December 1. Mr Stanley Baldwin, speaking at Glasgow, made a short reference to the debt question. He urged the British public to recognise that America herself was .in a difficult position so far as action regarding this month’s payments was concerned, owing to a State deadlock which existed, following oil the American elections. He believed that the American attitude was most .friendly towards Britain, and constitutionally ofr her to act. Referring to the Lausanne agreement, he said that Europe recognised that it was impossible, in the present

w’orld conditions, to continue the payL ments that were being made across the European exchanges in settlement ot the debts and reparations contracted during the war. The force of economic circumstances had been such that people realised that until those fetters had been removed from the necks oh the nntlons of Europe, it would be

impossible to revert to that freer cir* of trade, and commerce in goods, and to facilitate tbe payment > for these things, between countries. What was accomplished at Lausanne must be w of great weight at the World Conference, and at what discussions there might take place next year regarding the European debts to America, they might feel that the whole of Europe would enter into these discussions with the full sympathy of America, and also that Europe had achieved unity in her conception of how these problems should be met, and Dm lines along which they must travel before any could see daylight again in the matter of international financial obligations.

a Profound impression.

WASHINGTON, December-1. Probably as profound an impression hs has ever been made by a State document has been made upon the American people by the British Note. Couched in simple language, and with out complications of thought, it yet contains remarkably stirring phrases, which are reflected in streamer headlines throughout the press of the nation. “Like the shells whereon they largely were spent, these loans were blown to pieces! They have produced nothing to repay them!” “In all directions, there are signs of the paralysis of trade, and the threat of bankruptcy and financial collapse.”

These are sentences from the Note. They are items “in tragic bookkeeping’’ which the American people hitherto have never, wholly envisaged.

ENGLISH PRESS OPINIONS. (Received + V i dav at 9.26 a to) LONDON, December 2. Newspaper of all shades of political opinion approve of the Note as an adequate and forcible expression of Britain’s case. Editorials, apart from expressions of commendation, mainly traverse the Government’s faith in its arguments, the “Express” being the only London paper regretting that Britain is going to pay if America insists. The “Times” says that it is hard to believe that this plain, straightforward statement o 3 facts will fail to carry conviction. The “Morning Post” srys that it is a masterpiece of force and clarity. The “Daily Telegraph” thinks that jt will appeal to the intelligence of the great business community. The Note deals not merely with arguments for suspension of payment, but the broad issue of revision and resettlement,