BRITISH PAYMENT

Hokitika Guardian, 13 December 1932, Page 5

BRITISH PAYMENT

OF THE WAR DEBT!

WISDOM OF DECISION DOUBTED

(Ur>ted Press Association—By 7 Electric

Telegraph—Copyright.)

LONDON, December 11

The .Sydney “Sun's” representative says : “Tfe, city of London is becoming increasingly dubious of the wisdom of Britain paying America her war debt instalment of over £29,000,000 on Be* comber 15th.

The ‘-Investors’ Chronicle” declares that payment in gold would be a profound mistake in view of the Government’s contention that the gold reserves would bo unable to stand the strain.

•‘The “Economist” repudiates orthodoxy, and adviees default, conteilding this is inevitable sooner or later.” It says: “I-f it is a crime in chilly December, it is equally base in balmy June, blit a contract ceases to bind xvhen the contemplated conditions are not realised. There is no shame if a contract is broken by force majeure. .V'body expected the catastrophic decline in trade prices. It is fantastic to suggest that if Britain cut tRe war debt tangle, she would precipitate wholesale repudiation of commercial obligations because these stand in a quite different category. The world must not suftei by Britain's fatal policy of doing the right thing too late.” The early editions of the London newspapers give prominence to the news that Britain was g°‘ n g to pay the debt, but with reservations. The latest editions, however, emphasise the contrary truth, viz., “The United States rejects the British offer.” The details of this American Note arrived too late for real ciiticism, and the t<jxt has not yet been circulated by the British Foreign Office. “The Times” says: “The very prompt American reply, naturally, pointed out that the United States Treasury had no authority to accept the payment except accord'ng to the existing agreement, but the British Government has done right in refusing to make a default. It is equally clear it has don e right in coupling its announcement with a plain 'intimation in regard to payment as a st e P to a final settlement.”

CANADA IS UNCONCERNED

LONDON, December 11

Mr Bennett, Canadian Premier, on his arrival in London, was questioned whether he brought any Canadian offer to help Britain over her war debts. He 'Peplietf: “Canada is not .concerned with wa r debts. Canada has incurred a war debt of two thousand million dollars, but w e have no inter-Goyem-mental debts in this connection either to Britain or to America. We abandoned all claim to reparations at Lausanne. The whole of Canada’s war bill' is now part of our funded debt. ’

QUESTION OF SELF-INTEREST

RUGBY, December 10. Sir Arthur Salter, addressing the National Peace Council Conference, isaid the European creditors ha d commuted Germany's remaining liability in a way which would never involve an annual payment by Germany of more than about one-tenth of what was required by the, Young Plan. That was not but enlightened self-interest. He wHs sure that if America acted similarly, it would also in the balance prove immensely to the advantage of the whole world and herself, but if people in Britain would look at the position coolly anfd sympathetically, they should, at least, understand, though they might regret America’s reluctance.

PAYMENT IN GOLD UNDERTAKEN

LONDON, December 12. Britain’s decision to pay America in gold means that the gold will he earmarked in the vaults of the Bank of England, awaiting America’s instructions.

In the case of two friendly nations, no actual transfer takes place.

There was a rumour that -France is lending Britain the gold to make the payment on December 15th. This rumour is officially denied.

There has been a suggestion that the navmcnt "-ill involve a second British budget. This iis similarly groundless.