WAR DEBTS

Ashburton Guardian, Volume 53, Issue 207, 14 June 1933, Page 5

WAR DEBTS

TOKEN PAYMENT ISSUE.

MR ROOSEVELT’S ATTITUDE.

STRICT SECRECY OBSERVED.

GREAT TENSION IN LONDON,

v United Press Association—Copyright) (Received This Day, 11.45 a.m.) LONDON, June 13.

“The Sun” says that the situation regarding Britain’s debt to the United States, changing hourly, provided Whitehall with 30 hours’ continuous tension comparable to the wartime crisis.

Throe meetings of the Cabinet and several meetings of the Cabinet subcommittee succeeded each other within 18 hours, Ministers and officials rushing to telephones and motoring between the Economic Conference and No. 10 Downing Street, A mere handful is aware of President Roosevelt’s momentous decision, details of which the Chancellor of the Exchequer (Mr Neville Chamberlain) is drafting into a statement in locked room behind the Conference lobby. The House of Commons was packed, everyone awaiting Mr Chamberlain’s deliverance announced for 5.50 this afternoon. The entire Cabinet except Mr MacDonald and Mr Chamberlain were on the front benches until 5.45, when Mr Baldwin, Mr Runciman and Mr Thomas were suddenly called behind the Speaker’s chair. The atmosphere became electric, as it was realised that a hitch had occurred. It is believed that Mr Roosevelt suddenly changed his mind and desired to avoid the necessity of immediately facing Congress, therefore he wished to postpone his .statement to Thursday. • The full Cabinet met hurriedly. Ministers are in .a quandary, more especially as Mr Roosevelt’s original decision caused such relief. The news is now common property, and it is impossible to withhold a statement of such magnitude which is no longer Cabinet’s secret. Minister sat a few minutes, whereafter the Atlantic telephone cables were again buzzing to urge the desirability of au immediate statement. It was announced that Mr Chamberlain would speak at 10 o’clock to-night. Mr Chamberlain appeared at 10.10, when he further startled the House by announcing that details were not ye disclosable. The “Sun” Service has learned that Cabinet’s decision to postpone a statement until to-morrow is due to. Mr Roosevelt’s desire to immediately follow the announcement in America with a, personal broadcast throughout the continent, thus appealing to the populace over the heads of Congress. it is understood that lie will reiterate, as in his dispatch to Britain, consistent support of a practical settlement of debts, and that he will propose, as part of an Anglo-American understanding, immediate negotiations, possibly in London, in order to secure a final equitable discharge.

LONG EXCHANGE OF VIEWS. FAVOURABLE REPLY EXPECTED. (Received ’This Day, 1-35 p.m.) LONDON, June 13. Mr Chamberlain was unable to make, in the House of Commons to-night, the full statement he had hoped to make regarding the war debt instalment. It was known that there had been constant communications by cable and wireless between the British Embassy at Washington and London during the day, and it was first announced that Mr Chamberlain would speak at 6.30. Later lie said he hoped to make a statement at 10 p.m. An extremely interested House was again disappointed, for at 10.10 the Chancellor said that even then he was unable to make any complete statement on the June instalment.'He said, however, that there had been a lengthy exchange of views between the British and the United States Governments. “The British Ambassador at Washington has to-day handed to the State Department a ' Note setting forth Britain’s proposals,” said Mr Chamberlain. “We expect to receive the President’s reply to-morrow. ,We have no reason to suppose that it will be other than satisfactory to us, but as it has not yet reached us, I am not in a position to state its terms.” Mr Chamberlain said lie understood that arrangements had been made by which it would be possible for the debate to be adjourned at 10 o’clock tomorrow night and he hoped he would then be able to make a complete statement on all the documents exchanged between the British and the United States Governments. —British Official Wireless.

SUSPENSION THE ALTERNATIVE UNABLE TO PAY FULL PAYMENT. LONDON, June 13. The “Daily Telegraph” says that Cabinet lias considered a dispatch from Sir Ronald Lindsay (Ambassador in Washington) indicating that President Roosevelt is unable to signify general acceptance of a token payment. Britain’s proposal is expected to be in the nature of an offer to pay a portion of the instalment due on Thursday. Accompanying the offer is expected. to lie a request for extensive downwards'revision of debts.

In the meantime speculation has been increased as to the attitude ol President Roosevelt toward accepting a partial payment. It is known that the legality of such an action has been

given closo study by the president and iiis advisers.

Any request for extensive debt reduction is considered as certain to arouse an immediate and emphatic protest from members of 1 Congress, whether the Hotise is still in session or not.

Earlier, Cabinet had definitely agreed that Britain could not pay the full instalment while receiving nothing from her own debtors. The purpose of the second Cabinet meeting was to decide terms and not for expressing the intentions of the Government.

“The Times” says that some of the leading Ministers favour complete suspension of the June payment, if a token payment is not accepted. The diplomatic correspondent of the “Daily Telegraph” says that Mr MacDonald’s raising of the debt , issue in his speech at the Conference caused surprise and even some resentment among the American delegation but his initiative is approved in other circles.

AN INTERRUPTED DINNER.

SPECIAL CABINET MEETING

LONDON, June 13,

Information that reached Mr Ramsay MacDonald, while presiding at the Government’s dinner at Grosvenor House Hotel to members of the Conference, decided him to call a special Cabinet meeting immediately after- ✓ wards. It is understood that the receipt of a dispatch from the British Ambassador in Washington regarding war debts occasioned the decision.

EARLIER STAGES OF POSITION.

-GRAVE CRISIS DEVELOPS.

LONDON, June 13

Tliough Cabinet sat till midnight, Ministers again assembled at 9 a.m., and considered the war debt position. It is believed that further urgent exchanges with Washington are occurring prior to Mr Chamberlain’s .statement to bo made in the House of Commons in the afternoon.

<-The crisis is overshadowing all else. There was little sign of agreement at midday.

Mr Hull (leader of the United States delegation), postponed his speech at the Economic Conference as the result of the Washington dispatches, The political correspondent of “The News-Chronicle” says that Britain will default if President Roosevelt refuses the token payment.