DEBT DEFAULT

Hokitika Guardian, 14 June 1933, Page 5

DEBT DEFAULT

IF TOKEN EFFUSED BRITAIN’S ALLEGED DECISION. (United Press Association —By Electric Telegraph—Copyright;. LONDON, June 13. Information reaching Mr -MacDonald during dinner decided him to call a special Cabinet meeting immediately artenvards. It is understood that a dispatch had been received from the British Ainhassadoi at Washington, regarding the war debts which occasioned the decision. Mr Neville Chamberlain will make a statement in the House of Commons to-morrow afternoon. The London “ChronicleV’ political correspondent eavs that Cabinet will default if President Roosevelt refuses the proffered token payment. The “Daily Telegraph” correspondent says that Cabinet has considered a despatch from Mr., Lindsay indicating that President Roosevelt is unable to signify a general acceptance of the token payment.

Earlier, Cabinet had definitely agreed that Great Britain cannot pay the full instalment while receiving nothing from her debtors. The purpose of the second Cabinet meeting was to decide terms, and not for expressing the intention of the Government,

The “Times’ ” correspondent says that some leading Ministers favour a complete suspension of the June payment if the token payment is not accepted,

The “Telegraph’s” diplomatic correspondent says that Mr MacDonald raising the debt issue in his speech at th,e Conference caused surprise, and ever, some resentment, among the American delegation, but his initiative was approved by the other circles.

OFFER TO PAY PART OF DEBT. DOWNWARD REVISION URGED. WASHINGTON, June 12. Although officially silent as to the war debt issue to be placed before the London Economic Conference, the Administration was represented as awaiting the formal .British debt proposal, which is reported to he an offer to pay a portion of the instalment due o n Thursday. Accompanying tlip offer is expected to be a request for an extensive downwards, revision of the debts. • Meanwhile speculation lias been increased as to the attitude of Mr Roosevelt toward accepting a partial payment. It is known that the legality of such an action has been given a- close study by the President and his advisers,, and that any request for extensive debt reduction would be considered certain to arouse immediate emphatic protest from members -of the Congress whether still ip session or not.

TOKEN PAYMENT ACCEPTED. (Received this day at 9.30 a.tn.) LONDON, June 13, President Roosevelt is accepting the token payment of ten million dollars. It is understood that the President accepted Britain’s war debt token offer on his own responsibility, and has decided to face Congress FURTHER WASHINGTON exchanges. (Received thi 6 day at 10.20 a.m.) LONDON, June 13. Though Cabinet lasted till midnight iand again assembled at 9 a.tm, to consider the war debt position, it is believed that further urgent exchanges with Washington are occurring prior to Mr C--amber’.sin’s statement in the Commons in the afternoon. The crisis is overshadowing all else and there was (little sign of agreement at midday. ■Senator Hul,l postponed his speech to the Conference as the result of the Washington dispatches.