GOLD FOR AMERICA

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

GOLD FOR AMERICA

I (British Oflicial Wireless)

stRaight talking in british note in reply DISASTER FROPHESIED

Rec. Dec. 12. I Rughy, Dec. 11. A British Note which was tod'ay addressed to the United States says His Majesty's Government remains convinced that no solution other than suspension would obviate the difficulties effecting the transfer and therefore notes with profound regret that the United States has decided not to recommend this solution to Congress. In view of this decision His Majesty's Government has determined to make payment of the amount due on Thnrsday (15th inst.), but is convinced that the system of inter-Go-vernmental war debt payments as it existed prior to Mr. Hoover's initiative on tfune 20, 1931, cannot be revived withont disaster. In the view of His Majesty's Government therefore, the payment to be made on Thursday is not to he regarded as the resumption of the annual payment contemplated by the existing agreement. It is made because there has not been time for the discnssion of that agreement and because the United States expressed the opinion that such payment would greatly increase the prospects of a satisfactory approach to the whole question. The British Government proposes to treat the payment of Thursday as a capital payment, of which account should be taken in any final settlement and it is making arrangements to effect this payment in gold as being the Ieast prejudicial of the methods open to it. This proeedure must obviously he exceptional and abnormal, and His Majesty's Government desires to stress the importance of an early exchange of views with the object of concluding the proposed diseussion before June next, in order to obviate the risk of a general breakdown of the existing inter-Governmental agreement.