WAR DEBTS

Otago Witness, Issue 4032, 23 June 1931, Page 23

WAR DEBTS

SUSPENSION FOR ONE YEAR. PRESIDENT HOOVER’S OFFER. WASHINGTON, June 20. President Hoover to-night announced an offer to the world for one year’s suspension of intergovernmental debta. He said: “The American Government proposes the postponement during one year of all payments of intergovernmental debts, reparations, and relief debts, both principal and interest, not including the obligations of Governments held by private parties." The announcement was given after the receipt of informal reports from European Governments.

There is confidence here that Great Britain, France, and the other Allies will join in the move and forego to collect on reparations from Germany. Unless that occurs congressional approval of the proposal is not expected. The step to ’aid in avoiding a European financial crisis was taken only after President Hoover had conferred with all congressional leaders within reach. If the offer is accepted America will forgo the collection until next year of more than 245,000,000 dollars in war debts, and the Allies will not collect 425,000,000 dollars of reparations owed them by Germany in the coming year. President Hoover said: “The purpose of this action is to give the forthcoming year to the economic recovery of the world and help to free the recuperative forces already in motion in the United States from retarding influences abroad.” Congress will not meet until December, but none of the war payments is due until December 15. FRANCE'S FAVOURABLE VIEW. PARIS, June 21. An official of the Ministry of Finance told the British United Press: “Any sacrifice that the United States makes in war debts would be favourably accepted by France and a corresponding amount deducted from the German conditional payments under the Young Plan. France will not, however, agree to reopen the discussion in regard to unconditional payments, which Germany must carry out.” ■« Other official quarters state that France would naturally be pleased at any reduction of Europe’s war debt burden. EFFORT TO AID GERMANY. NEW YORK, June 19. The Washington correspondent of the New York Times says: “ Following President Hoover’s reparations statement it is believed that the President has taken the initiative in an effort to aid Germany. It is felt that in doing so the contemplation of reparations concessions between Germany and the Allies would be necessitated, which in turn will require decisions concerning debt payments between the Allies themselves. Therefore although President Hoover gave no inkling of what measures he had taken to aid the world situation it is understood that the plan under consideration contemplates authority from the United States Congress, which will give the Allied debtors the right to withhold interest payments during the period of European economic and financial uncertainty.” EFFECT ON DISARMAMENT. WASHINGTON, June 20. President Hoover coupled with his announcement of a war debts holiday the hope that by a “desire to assist” America will have contributed to the success of the forthcoming Disarmament Conference. He reiterated: “The burden of comprehensive armaments has contributed to bring about this depression.” CONFERENCES WITH LEADERS. WASHINGTON, June 20. President Hoover contemplates issuing next week a comprehensive statement concerning his conferences with the Republican and Democratic leaders over the German reparations problem. In the meantime White House has issued a statement. The President continued his conferences throughout Saturday, and further conferences will follow. NEWS NOT A SURPRISE. LONDON, June 21. The news of President Hoover’s offer reached London at a most awkward hour. The early editions of the Sunday papers were already printed and circulated, and late special editions were hurriedly prepared. Naturally there was no comment. The news is not altogether a surprise. As a matter of fact the subject was given prominence in the early editions, several papers containing predictions of the suspension of debt payments for a year or more as an alternative to Germany’s declaration of a moratorium, which could not have been much longer delayed. REFERENCES TO DISARMAMENT. NEW YORK, June 21. In comment to-night on President Hoover’s announcement, his references to the Geneva Conference were interpreted as the president’s way of serving notice upon the European Government’s that if they desired the modification of the war debt arrangement with the United States the best course of procedure would be to reduce heavy armaments expenditure and thus create a sympathetic and reciprocal feeling among the American people.