Ashburton Guardian Magna est Veritas et Prævalebit. FRIDAY, APRIL 7, 1933. AMERICA AND WAR DEBTS.

Ashburton Guardian, Volume 53, Issue 151, 7 April 1933, Page 4

Ashburton Guardian Magna est Veritas et Prævalebit. FRIDAY, APRIL 7, 1933. AMERICA AND WAR DEBTS.

Mr Ramsay MacDonald’s pending visit to President Roosevelt is the outcome, according to newspaper report, of a further disappointing talk with the special representative of the United States (Mr Norman Davis), and even more disappointing reports from Washington regarding the instalment of the war debt due in June. Mr MacDonald holds that a heart-to-heart talk with Mr Roosevelt will be the most practical method of preventing a deadlock in regard to war debts that may easily jeopardise the World Economic Conference. So far as Britain is concerned the need for some relief is clearly indicated by the figures recently given in the House of Commons by the Chancellor of the Exchequer. These figures, which include both interest and repayments on principal account, showed that, including the payment of £.29,000,000 on December 15 Britain's payments *o the United States amounted to £355,200,000. Britain’s receipts from foreign war debts amounted to £71,100,000 and from reparations £121,300,000, making a total of £192,400,000. The war debts question and the World Economic Conference are matters in which the sympathetic co-operation of America with Eurdpean countries is essential, if mankind is to be set on the road to recovery from its economic ills. Mr Roosevelt has given an impression of unwillingness to treat the relevant issues as immediately urgent matters. His desire, expressed even before his inauguration, to discuss war debts in conjunction with economic questions in the hope of reaching some trade agreement advantageous to the United States —or, to put it in the American way, his intention to take steps for world economic recovery in return for relief afforded by the United States to her European debtors —has introduced a complicating factor into a situation already exceedingly difficult. The British Government’s acceptance of Mr Roosevelt’s invitation to discuss the war debts position has been qualified by a reservation which has been interpreted in the United States as virtually excluding the discussion of important world economic problems. The Chancellor of the Exchequer deemed it necessary to plainly. He reiterated that Great Britain is opposed to bargaining at the impending discussions, which she does not regard, he stated, as a great swapping deal. The adjustment of debts, he emphasised, has as much interest for the creditor as the debtor, and Britain cannot offer anything in. the way of tariffs except possibly rec ‘P r °" cities covering a limited field. The position will no doubt be clarified in due course, but present appearances suggest that the United States is in some danger of losing the substance by pursuing the shadow. Insistence on the terms of the existing debt settlements would inevitably deepen the depression m world trade, and bring about a further fall in commodity prices with disastrous consequences from which no nation would be exempt, to say nothing of its effect on the Lausanne agreements, so important to Europe, or on the prospects for the World Economic Conference.