ALARM RAISED.

Auckland Star, Volume LXIII, Issue 123, 26 May 1932, Page 7

ALARM RAISED.

HEAVIER TAXATION. WAR DEBT PAYMENTS. Rumour of British Intention Causes Stir. WAR PENSION CUT FORECAST. iCnited P.A.—Klcctrlc Telegraph—Copyright) (Received 11 n.m.) LONDON, May 25. The city is alarmed at the prospect of additional taxation if Britain resumes the full war debt payments to America on the termination of the Hoover Moratorium in December next, when there is little prospect of collecting reparations from Germany or full payments from France and Italy. The Foreign Secretary, Sir John Simon, in the House of Commons, today confirmed the announcement of the impending signature of an agreement j with tlio United States for the repayment of the. amounts suspended in respect of the British war debt to America. Hβ said that under President Hoover's proposal all inter-Governmental payments in respect of reparations and war debts were suspended for the period from July 1, 1031, to June 30, 1932. It was agreed at the London Conference in August last that the amounts so suspended should be paid by means of ten equal annuities as from July 1, 1933, with interest. Protocols were signed at the London Conference providing for the payment on the above lines of the amounts suspended in respect of the German reparation payment and the war debts to this country. Tho United States Government recently requested His Majesty's Government and the other Governments concerned to sign agreements regarding the amounts suspended in respect of the war debts to tho United States Government, and instructions had been sent to the Ambassador at Washington, Sir Ronald Lindsay, to complete and sign tho agreement relating to the British war debt. He added that this was a rormal .step necessary in order to give legal effect to the other proposals, and implied that it was not a decision on any question of principle. International Repercussion. The "Financial News" forecasts the bitterest opposition from, the whole nation unless the Government makes a serious effort to reopen the American debt settlement question. The paper states that repudiation, even partially, cannot be contemplated, but hopeless acquiescence in the existing disastrous system of war debts is a sign of lamentable weakness. "Although it had been understood that a strong section of the Cabinet headed by Mr. Baldwin and Mr. Chamberlain favoured resuming the payments to America on December 15, it was believed that Mr. Mac Donald and other Ministers who wished to negotiate for a revision -would have had their way. The decision on the part of Britain is calculated to make it difficult for the French and Italian Governments to agree to a reduction in Germany's reparation payments. "If Britain is prepared to continue the payments in full there is no likeli hood of concessions being made by the United States to France and Italy." The "Daily Herald" says that Government circles are discussing the introduction of a new Economy Bill in autumn, saving £80,000,000 to f 100,000,000 a year. Among the economies mentioned is a reduction -of £4,000,000 in ■war-pensions.

FOREIGN TRADE.

BRITAIN AND HER TREATIES. (British Official Wireless.) RUGBY, May 25. Replying to a question in the House of Commons, the President of the Board of Trade, Mr. Walter Eunciman, said there was no present intention of terminating the commercial treaties with France and Germany, but the existence of import quotas in other countries would have to be taken into account in determining the future treaty policy of Britain.