WAR DEBT PROBLEM

Hokitika Guardian, 15 December 1932, Page 5

WAR DEBT PROBLEM

FRANCE & ITALY THEIR RELATION TO BRITAIN (British Official Wireless.) RUGBY, Decamber 13. A statement regarding the Avar debt payments, and tntir relation to tiio Lausanne agreement, a\ as made m the Commons by the Chancellor of the Exchequer’ He Avas asked by Mr Churchill for an assurance that the Government would in no circumstances consent to . the preferential discriminatibii of France and Italy in favour of their Avar debts payments to thoriUnited States, as against their payments of similar debts due to Britain, aiid A\hether he Avould demand equality and

simuitaneousnesfi of treatment for Britain from these two countries, in order to prevent all payments by:-alii countries to the United States on December loth,.*being mad© at the sole expense of Britain. Replying, Mr Chamberlain said that the letter which he addressed to the l'rench Finance Minister at Lausanne in July, 1932 stated that- the United Kingdom: Government would have beenglad if ,it had been possible to cancel the French war debt, as part-of an all round. cancellation, but in the actual circumstances, they, could not enter into, any definite commitments,.'modifying, the existing war debt funding agreement. * * ■

' They agreed, however, that the annuities due under : the agreement should be suspended’ until the- coming into force of the Lausanne agreement, until it Avas decided not to ratify it. The British Government earnestly tiusted that the examination of the AA’hole question of Avar debts, in rela--. tion to Avorld recovery, Avhich the United States 'Government had agreed to, AA'ould result in a settlement Avhich Avould enable the Lausanne agreements to be, ratified; ’

Meantime,- the British .Government considered it of -the utmost importance that no .decision should, be taken at present to, the effect that the Lausanne agreement could not be ratified. 'Consequently,' the suspension’ of reparations and Avar debts AA’ould remain in force, but all the rights of the British Government, under the 'existing agreements,, would be resen ed’. Answering'a question Avhether France had agreed to pay Britain £12,000,000 per year, Respective of payments from Germany, the Chancellor of the Exchequer said that the agreement Avith France provided that payments, were dye to Britain, quite irrespective of any payments received froih Germany by’ France. He added ; “We are entitled, and we,, intend, if sp nine, 'to make, a separate settlement Avith the United States.”