WAR DEBTS

Rotorua Morning Post, Volume 1, Issue 96, 14 December 1931, Page 5

WAR DEBTS

(Press. Assn.-

U.S. POLITICAL LEADERS MAKE PACT WITH TREASURY WILL ACT BEFORE CHRISTMAS

— By Telegraph— Copyright) .

Rec.| Dec. 13, 5.5 p.m. . WASHINGTON, Saturday. An informal understanding was reached to-day between the Administration and the Senate leaders regarding the debts of foreign governments, it being agreed that foreign governments would not be considered at fault if their war' debt payments due next week are not paid, pending formal ratification of the one-year moratorium. The Assistant-Secretary to the Treasury, Mr. Mills, discussed the sit- 1 uation with the leaders of -both parties in the Senate. He said the Secretary of State Mr. H. L. Stimson, would deal with foreign governments respecting their payments, but does not expeqt the Minister to make any formal statement on the question.

Mr. Rainey, Democratic leader in | the House of Representatives, promised that the Democrats would not make the moratorium a party question. Mr. Rainey said he would vote against it, but the Democrats had planned to leave it to the individual members as to their own position. He f oresaw opposition from both Republicans and Democrats. However, the House would act on the moratorium and send it to the Senate before Christmas.