DEBT PAYMENTS

Hokitika Guardian, 10 December 1932, Page 5

DEBT PAYMENTS

U.S. REVIEW

REPLY TO BRITISH NOTE.

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

WASHINGTON, De c einber 9

The publication of America’s rieply to the British note to-night reveals, according to th© interpretation of obthat" President Hoover plans to present to Congress a firm record in favour of debt s revision in exchange for economic concessions and tor European disarmament, and that li« plane then to .leave the responsibility for action with President Roosevelt’s administration after March 4th. The American note, is viewed here as a “friendly” one, with the United SJJates .administration allowihg Britain to take the initiative in proposing tt\3 agency for the revision of the debts, and also suggesting a manner of payment that is calculated te eas e the exchange situation.

The note, however, ratlTfer* firmly contradicts Several of the contentions in the British note a s regarded what primary part the war debts take in the world depression. Although no informal poll of Congressional opinion has yet been taken, at is" indicated that Congress will he as strongly opposed to .any agency of revision where Britain might suggest aa it is opposed to the re-establish-ing of the debt funding commission. The press reaction to thfe American ngv generally stresses its friendly tone, its persuasiveness, and the conclusivencgs of its contentions. , How e vie r, in view of European cabled reports, Mr MacDonald and M. Harriot are prepared to continue their demands for debt revision, even with tn e payment on 'December 15th. The ’ ".New York Herald-Tribune,” in'* leading article, points out that the European and American views on the matter are widely apart. It says: “Thiere is a basic cleavage in outlook, which runs through the arguments on both sides, and which inevitably prevents any .agreement through discus' sion.” But the pape r adds that a prompt payment by Britain would give her “every right to ask and to expect a complete reconsideration of her debt.”

The “New York Times” in a leading article, says that the terms of the American note are more conciliatory tnan was 'America’s original reply. It remarks; “Theite is no more talk of the absolute powerlessness of the Hife.'iidont.” It . aJlso says that Mr Stimison gives an assurance of a willingness to survey the whole .situation.

EUROPEAN .INDECISION,

BRITISH PRESS COMMENT

LONDON, December 9.

Eurepe remains in suspense as regal'd® the debt payments. It is clear that the United States wants payment on December 15th, but it stated, both here and in Paris, that no decision has been reached either by Britain or by France. The decision depends on circumstances.

Mr N. Chamberlain, th e Chancellor of the Exchequer, on his return to London, said that a Cabinet meeting was being held shortly to decide the quest’on of payment. It is believed in Parliamentary circles that' Britain will pay in gold bans without any increase uf the' fiduciary note issue.

The “Daily Telegraph’s’’ political correspondent says: ‘‘The sinking fund will probabi/ be suspended to the respondent : “Mr MacDonald, Mr extent necessary. to meet the liability.” The “Daily Telegraph’s” Paris corChamberlain, M. Herriot, and M. Germain Martin have examined every aspect of the debts and the Lausanne agreements. An- impression, prevails that the two Governirent 6 are converging to an agped-on solution. It is believed that the Ministers discussed, at length, the advantages and disadvantages of making payments on December 15th, and th e difficulties of transferring the -sums required.” “The ' Times” savs: “President Hoover shows no weakening in h’-s insistence on payment. His attitude shows a spirit of friendship and a desire to co-operate. The main .significance of thp American note lies, not In what it refuses, but in what it accepts. A great point is that the President indies the British Government to negotiate with a view to the reconsideration of the war debt settlement. The “Daily Telegraph” says it admits an intense disappointment at the Oliverienn note, it finding therein almost 1 W complete absence of a world oii+lbok and world vision. Tt says;— “Britain will pay—-but not again on tlm present terms.”

The “Morning Post” says : “Tf President Hoover’s reply represents the considered attitude of America, a reasonable settlement of the debt mmstion appears disappointingly remote.”

ANGT.O-FRENCH CONVERSION

BUG BY, Dcco-i-Gv «

A ft n r conversation on the debts situation at Par'- to-.lav between Mr •MacDonald. AT r Chamberlain. M. Herriot and M. Germain Martin. n statement b-'-ed h" tile FiVm-h Government said: Mho Minister exp'ainod the state or public filing in their respective countries, and had full exchange of views on the debts noostion. They considered the position concerning Laus-

anne agreements, and examined the difficulties arising out of payments due on December 15. While reserving their •independence of faction in dealing with this matter they declared the common determination to obtain by international' co-operation..all means calculated to promote the economic Restoration of the world. Later Mr! MacDonald returned to Geneva., and Mr Chamberlain to London.

AMERICAN REPLY TO FRANCE. WASHINGTON, December 9. Mr H. L. Stimson replving to the French debt note said: “The United iStatos Government has not heen able to reach a conclusion that postponement 0,1 December 15th. of the payment from France to United States is necessary, because of its effect on the problem of recovery.”