AMERICA INSISTS

Rotorua Morning Post, Volume 2, Issue 404, 13 December 1932, Page 5

AMERICA INSISTS

(Press. Assn.-

BRITAIN MUST PAY UNDER TERMS OF PRESENT AGREEMENT MUST BE UNCONDITIONAL

— By Telegrapli — Copyrlglit),

Rec. Dec. 12, 7.40 p.m. Washington, Dec. 12. The British Note stated that payment wonld be made in gold, hut it was not to be regarded as a resumption of payments on the scale used before Mr. Herbert Hoover's moratorium. After several hours conference with Mr. Ogden Mills (Under-Secre-tary to the Treasury), Mr. H. L. Stihison handed the United States reply to the British Ambassador, Sir Ronald Lindsay, which said that the Secretary of. the Treasury had no authority to accept the war debt payment except as provided in the funding agreement. Congress will make a final decision in respect of the changes in intei*governmental pbligations and the acceptance of the Deeember instalment cannot constitute approval of or agreement to any condition or declaration of policy inconsistent with the terms of the agreement. The Note adds that it seems undesirable that any steps should be taken which, by causing misunderstanding, would increase the diffieulty that must he overcome in finding an ultimate solution satisfactory to both nations. It is particularly stated in the note that Mr. Stimson took up the position that accepting payments with conditions was illegal. He explained that Congress must act to change the funding agreement in any respect. The speed with which the Note was prepared is a direet indication to France what she must expect if she attempts to supplement payment with similar conditions, which is eonsidered exceedingly ' timely, as the Chamber of Deputies has scheduled the debates on payments for Monday. Mr. Stimson considerably surprised everybody when the Note was delivered to-day as it was not expected until to-morrow. The latter immediately summoned Mr. Mills and several aides and drafted the note. The contents were then communicated to Mr. Hoover who approved it. The reply was then delivered to Sir Ronald Lindsay.