N.Z. & WAR DEBT

Hokitika Guardian, 21 December 1932, Page 5

N.Z. & WAR DEBT

PAYMENT OFFER • NOT ACCEPTED BY BRITAIN. (United Press Association—By Electric Telegraph—Copyright.) LONDON, December 19. It ig understood that the Government is to-morrow despatching a reply to New Zealand’s offer to resume its war debt payments, indicating that the Government has deep appreciation of the magnificent spirit shown, especially in view of New Zealand's budget problem, but the reply is likely t 0 suggest that this question should remain in abeyance pending negotiations with America.

The position is that Britain has neither asked nor expected the Dominions at present to resume these payments. The situation L precisely as was cabled on November 30th and December 9th ; which apparently f it is necessary to owing to cabled suggestions that Australia is also contemplating a resumption of its war debt payments.

The crux of th e situation j s the Lausanne agreement, which some of the Dominion opinion confuses with the Hoover moratorium, and notably New Zealand’s offer. It was agreed at Lausanne that the Dominions would not be treated less generously than were foreigners if the question of payment arose. Britain is not desirous of disturbing the Lausanne orisons in Europe. She hopes for early discussion with America, pending which the Lausanne agreement must continue.

The “Morning Post,” commenting on “New Zealand’s honourable debt gesture,,” remarks: There is no war debtor more deserving of relief and none readier to make every sacrifice rather than dishonour its bond. “The Times’-' says; It is an unselfish offer from a Dominion that is gallantly struggling through depression. The same attitude is taken by Australia, although they abstain from making any formal offer pending a review of the whole situation.. The attitude of these is welcomed as another proof of their high courage and generous comradeship.

AUSTRALIA NOT INVOLVED.

CANBERRA, December 20,

New Zealand’s offer to resume its liability fo r , the war debt payments in no way involves Australia in any immediate action. The next Australian payment will not fall due until March 31. Official circles express the opinion that, owing to the uncertainty of the world position and the possibility of gome, future arrangement */between Britain and the United .'States, any decision upo-n the subject at present would be premature.

CANCELLATION INEVITABLE.

SYDNEY, December 20

Mr W. 'M. Hughes, upon his return from England; said ; “No matter what shape the immediate result of the default by Prance, Belgium and other nations may assume, the cancellation of the war debts is inevitable. The United States will be compelled to review its position.”

PRESENT INDICATIONS

(Received this day at 10 a.m.) LONDON, December 20,

Indications at Whitehall are that the Dominions will not be called on to resume their debt payments to Britain while foreigners are exempt under the Lausanne agreement.