DEBT CONVERSATION

Hokitika Guardian, 30 January 1933, Page 5

DEBT CONVERSATION

U.S.A. AND BRITAIN

DISCUSSION WITH AMBASSADOR.

(Ur'ted Press Association —By Electric Telegraph—Copyright.)

NEW YORK, January 29. A message from Warm Springs today announced that Mr F. Roosevelt lias assumed the personal direction of the war debts* negotiations, and that iie virtually took over the functions of the United States Presidency when ho invited Sir E, Lindsay (British Ambassador) to visit him there, and to confer on the situation, prior to the Ambassador’s visit to England to place the matter before the MacDonald Government.

At an afternoon press conference,

Mr Roosevelt, in answer to queries on the nature of his conference with Sir R. Lindsay, said he would discuss

“debts and economies.” It is assumed ho would inform Sir R, Lindsay of his views both as to the procedure at the negotiations and what the American attitude could be expected to be, >

There is much speculation Regarding Mr Roosevelt’s exact motive in inviting Sir R. Lindsay to Warm Springs. It is known that financial interests in this country are pressing him for a sharp reduction in the war debts, At the same time, there is a considerable difference of opinion among his advisers concerning the extent of -any reductions. Furthermore, London dispatches indicate a strong objection to his “bargaining” policy. Informed circles believe that firstly, the new President wishes to take the negotiations out of Mr Hoover’s hands, and to take full control himself. Secondly, lie wants to acquaint the British Government through Sir It. Lindsay, of his position in full to avoid possible disappointment. The “New York Times’ ” Washington correspondent says: An intensivestudy of the British note in official circles resulted in the general opinion that the British, in effect, have rejected the Rclosevelt-Hoover pploposals, anti that “ the score is again at zero.” Some observers say that Britain’s willingness, at present is only to discuss the debts, which has served to disrupt Mr Roosevelt’s programme. 'l'lie best informed members of Congress believe that unless Mi - Roosevelt formulates a new thesis or extends the moratorium, there will be a series of defaults on June 15. It is held certain that Mr Roosevelt, even if lie wishes, cannot induce the next Congress to remit any party of the British, debt unless this is accompanied by substantial concessions,

The Stato Department think the British lire merely seeking to re-as- • sure the French that they will not be a party to the setting up of an Anglo-American economic block against the world. A new game in international relations will be played by Mr Roosevelt jiji taking up individually and separately with the European heads the war debts question in March, and abandoning the Commission idea. Ho is determined to take full, lone responsibility for the outcome. Mr Roosevelt has clamped down the lid on any discussion. No one knows what he lias in mind. His silence lias greeted an announcement by Britain accepting Mr Roosevelt’s counterbid for the discussion of world economics in connection with tlie war debts. Though tljere is gratification at this response, the same secrecy covering the war debts play applies to the economic conference.