DEBT SETTLEMENT

Hokitika Guardian, 24 January 1933, Page 5

DEBT SETTLEMENT

U.S. DECISION

GENERAL WELCOME IN BRITAIN. (British Official Wireless.) RUGBY, January 21. The Washington annou’iccimnt of the willingness of the incoming A-:!-mmAtration; when it takes over, e r.irly in March” • to- ; cofifer with British )'= presentatives ’ about the war debts," and discuss wor]d economic problems in which two countries are* mutually interested, was generally welcomed Britain.

The British Government had mm.. no move in the matter since they paid

to America, when the debt instalment came due on Dece-mljOir 15th, the sum oT 95 million dollars gold. It then required £23,500,000 to discharge this gold 'obligation of £19.633,976. The

American move is in effect a e p quel to the request contained in the British not© on November 10th, for a review of the regime of Mite ; -govern-* mental obligations.

Beyond general expression of satisfaction at the prospect of progress promised by the Washington announcement, no official comment is as y.et available. “The Times” welcomes th e consultation and co-operation fore-shadow-ed, and emphasises the need for a clea r understanding of the realities of the, situation, It says one of those realities >9 that anxious as Britain has been and is to fulfil nil her obligations, (America made it impossible for her to go on making war. debt payments, by refusing to accept, goods and services, bv which alon e payment wag possible. Unless America is prepared to recast her whole economic policy, so as to enable debtors to pay what they ou r e, the only alternatives are a settlement on the Lausanne model, or frank cessation of payment. . The second reality i,s that since the next payment is duo .Tune 15th and Since these war debt obligations, so long as they are maintained, constitute in themselves an insuperable barrier to economic recovery it is a matter iof urgency that ,thcy should be out of the way before the Worhl Conference meets, and that it would be a grave mistake to rnak,e a solution of this problem .dependent on the prior tor simultaneous solution of any of the many complicated empstion-s with which the Conference will have to deal.

The “News-Chronicle” says: The announcement represents a v e r y great advance om any furthier position taken up by America. The greatest satisfaction prevails in (London political circles, at the White Tlouse announcement.

The “Daily Chronicle” says : It is expected that Treasury officials will shortly be despatched to Washington to assist Ambassador Sir It. Lindsay to conduct the preliminary talks with a full dres s conference, probably headed by Mr ißamsay MacDonald, or otherwise by the Chancellor of the Exchequer, Mr Chamberlain. The “Daily Telegraph” says ; Toe invitation will -b e 'received with mixed feelings in Britain. It U all to the good that the war debts questions should he salvaged from the backwater into which it has been allowed to drift, but Washington’s, reference to th e world economic situation suggests that the Americans mean to use the war debts to negotiate a tariff bargain with Britain, and presumably later with the other debtors, separate 3y-; which will prejudice the application of any world formula by the World ■Economic Conference.