AMERICA'S POSITION

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

AMERICA'S POSITION

FORESTALLING FRANCE Rec. Dec. 12, 7.30 p.m. Washington, Dec. 11. A few hours after Sir Ronald Lindsay, the British Ambassador, delivered to Mr. H. L. Stimson, the British Note saying that the payment of 95,000,000 dollars, with qualifications, would he made in gold on Deeember 15, Mr. Stimson handed Sir Ronald Lindsay Ameriea's answer declaring that the British intention to pay was noted with satisfaction, but payment could not be accepted with conditions extending outside the debt funding agreement. The British note specified that payment would not be regarded as a resumption of payments under the existing agreement, but as a capital payment of which account should he taken in any final settlement. The nature of the Note generally is what was expected. Mr. Stimson's quick response is interpreted as a move to leave matters entirely to the British understanding that the conditions will be rejected, and that if payment is made it will only be accepted as coming under the existing agreement. Congressional reaction was immediate and favourable to Mr. Stimson's policy. Observers here consider it might create an impasse, but it is believed the gap between the two Governments is not so wide as might appear, and also that the British note is merely laying the groundwork for the future.