WAR DEBT PAYMENTS

Otago Witness, Issue 4033, 30 June 1931, Page 27

WAR DEBT PAYMENTS

THE PROPOSED SUSPENSION BRITAIN’S CO-OPERATION. RUGBY, June 22. President Hoover’s proposal that for one year, as from July 1, there shall be a postponement of all payments of all war debts and reparations, both principal and interest, which was issued at Washington on Saturday night, was the subject of a brief statement in the House of Commons. Replying to a question put by Mr Baldwin the Prime Minister said his Majesty’s Government in the United Kingdom cordially welcomed the striking declaration made by President Hoover. For its part the Government desired at once to state that it subscribed whole-heartedly to the principle of the proposal, and was prepared to co-operate in elaboration of the details with a view to giving it practical effect without delay. “ The House Will not expect me to say more at the present stage,” he concluded. Mr Baldwin, on behalf of the Conservatives, associated himself with the Words of the Prime Minister. Mr Lloyd George expressed similar Bentiments on behalf of the Liberals. SAVING GERMANY FROM CRISIS. LONDON, June 22. Gewiany regards Mr Hoover’s proposal as coming not at the eleventh hour, but at five minutgs to 12, saving the country from the worst crisis since 1923,

NET LOSSES’TO NATIONS. LONDON, June 22. . The Times estimates that the suspension of all war debts payments would mean a net loss to Britain of £1,400,000, France £20,000,000, Italy £2,000,000, and the United States £48,000,000. Germany Would be relieved of approximately £81,000,000. ECONOMIC RECOVERY. MONTREAL, June 22. Mr E. W. Beatty, of the Canadian Pacific Railway, declares that President Hoover’s action will afford a striking opportunity for world economic recovery. GERMANY ACCEPTS PROPOSAL. WASHINGTON, June 23. Germany to-day formally accepted the Hoover proposal. MR SCULLIN’S VIEWS. CANBERRA, June 24. The Prime Minister (Mr J. H. Scullin) stated: “I cordially join with the British Government in welcoming the proposals of President Hoover. They are primarily directed to relieving the debtor nations, and in my opinion they reflect the worldwide economic depression?’ The Prime Minister pointed out that if Great Britain, under the Hoover plan, afforded relief to debtor nations, Australia being one, Australia would be relieved to the extent of £3,920,000, but would forgo her share of reparations to the extent of £830,000. Thus the net gain to the Commonwealth would be £3,090,000.

EFFECT ON THE DOMINION. WELLINGTON, June 2’4. In reply to a question the Prime Minister (Mr G. W. Forbes) said it was impossible to indicate whether Mr Hoover’s debt postponement scheme would have any bearing on this year’s taxation proposals of the Government as the suggestion was in a tentative form. New Zealand had already paid its halfyearly instalment for the current year. The whole matter was the subject of correspondence between the .Government and the High Commissioner for New Zealand in London.

BRITAIN’S CO-OPERATION. , RUGBY, June 24. An important statement was made , in the House of Commons by Mr Philip Snowden (Chancellor of the Ex--chequer) regarding the policy of the Government for giving practical effect to President Hoover’s proposal. Mr Snowden said: “As the Prime Minister informed the House on the 22nd inst., the Government of the United Kingdom subscribes wholeheartedly to -the principle of President Hoover’s proposal, and is prepared to co-operate in an elaboration of the details, with a view to giving it practical effect without delay.° 1 should like to take this opportunity of explaining the steps we have decided to take for this purpose. The more consideration we give to the President’s declaration the more it seems to us, having regard particularly to the history of the matter, that the declaration con stitutes a very great gesture on the part of the United States, and it will be a thousand pities if Europe does not respond to it in the same spirit. “ The beneficial effect of the proposal may be lost unless steps are taken by all the countries concerned to give it prompt and practical effect. This is particularly the case as regards Germany, which, after all, is the essential difficulty. We agree with the view expressed by the United States Government that there is no time for a conference. A more prompt method must be found for putting into operation the proposal of the United States Govern ment for a complete and immediate suspension of German payments to the creditor Governments. The procedure which we would favour is that the credi-

tor Governments should forthwith notify the Bank of International Settlements that they agree to the proposal for a suspension for one year of all German payments due to them. The decision does not rest with us alone, and we are awaiting the views of the other creditor Governments, but we hope that it may be possible to secure an agreement on these lines as soon as possible. “ President Hoover’s proposal applies, however, to all intergovernmental debts, reparations, and relief debts. The British Government, for its part, accepts thi§ proposal in the spirit as well ns in the letter. It w’ill accordingly be ready to suspend for one year all such inter governmental debts due to it as soon as President Hoover’s proposal has been generally accepted, and in the meantime as from the Ist proximo it refrains from claiming instalments that may fall due. As regards relief debts, his Majesty’s Government is at once taking steps to inform the other European Governments which hold relief bonds of its action, and invites them to co-operate.” Following Mr Snowden’s statement, Mr Baldwin, on behalf of the Conservatives, said he would content himself with saying that the Government had taken a course that was fully consistent with the dignity and reputation of our coun try. Mr Lloyd George said he was very glad that the Government had given this complete, courageous, and unequi vocal answer to the very noble gesture of the United States. Replying to Sir Austen Chamberlain, the Chancellor of the Exchequer said he would make a statement later as to how the budgetary position in this coun try would be affected by the Government’s policy. GERMANY’S GRATITUDE. BERLIN, June 24. Dr Bruening, in a broadcast speech, expressed the Government’s gratitude for President Hoover’s proposal, but warned the German nation that the American plan would not end all its troubles. The Government-shad resorted to hard measures, and would stick to them, because even without reparation payments exceptional efforts would be required to get through the next 18 months. He would welcome the opportunity of discussing the whole position with French statesmen.

FRENCH RESERVATIONS. PARIS, June 24. France has accepted the moratorium with reservations on the unconditional annuities. ITALY FAVOURABLE. ROME, June 24. Signor Mussolini has telegraphed to the Italian Ambassador at Washington instructing him to announce Italy’s readiness-to accept the Hoover proposal. The Rome correspondent of Thej'imes states that Signor Mussolini says that President Hoover’s proposal involves notable Italian sacrifices, which he proposes subsequently to bring to America’s notice. ' LOANS FOR GERMANY. LONDON, June 24. The Daily Telegraph says that the banks of England and France, the Federal Reserve Bank, and the International Bank have lent the Reichsbank £20,000,000 to meet payments due at the end of the month. DEBATE IN FRENCH CHAMBER. PARIS, June 26, The Chamber of Deputies approved of the reply to President Hoover by 386 votes to 189. The Prime Minister (M. Laval) expressed satisfaction with the result of the Hoover conversations. M. Dubois, ex-president of the Reparations Commission, urged that France should insist on guarantees, and he suggested that the United States had intervened in European affairs to suit her own convenience. He depicted Germany as aiming as the destruction of the Versailles Treaty, and he referred to the pan-German menace. The French Ambassadors, whom events had caught napping, should be changed. M. Briand retorted: “ Don’t expect me to be cowardly enough to sacrifice my officials.”

M. Flandin declared that it was never intended to upset the Young Plan, under which Germany sought a moratorium a few days before the Hoover proposal, which would be more economical to France. AN EXHAUSTING DEBATE. z PARIS, June 27. After a long and exhausting debate the chamber at G. 45 a.m. adopted M. Fougere’s motion to approve the Government’s reply to President Hoover, adding that the -chainber relied on the Government to maintain intact fhe unconditional contract which was signed in The Hague Agreement. All night long speaker after speaker expressed his views, and at one time it looked likely that all the Left groups would vote against ratification, in which event, the Government might have been narrowly defeated. X

At .4 a.m., the deputies being almost worn out by the length of the debate and the excitement, there came a brief interval, after which M. Herriot vigorously voiced the views of the Radical Socialists,, declaring that his party would not support any motion which did not assure respect for contracts.

Just before the vote was taken M. Tilum announced that the Socialist Party would vote with the Government. CANADA ACCEPTS PROPOSAL. OTTAWA, June 26. In the House of Commons to-day the Prime Minister (Mr R. B. Bennett) announced that Canada is prepared to accept the Hoover proposal in principle for a one-year moratrium on all Government debts. SOUTH AFRICA FAVOURABLE. CAPETOWN, June 26. The Government intimated that it was in most cordial agreement with President Hoover’s proposal regarding the suspension of Germany reparations, and that it would gladly forgo its share of such payments, whether conditional or unconditional. The South African Government informed the British Government that it highly appreciated its offer, but considered that South Africa in the.circumstances was not justified in taking advantage of it.