WAR DEBTS.

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

WAR DEBTS.

NEW AGREEMENT. Resumed Payment Of Annuities By Britain. MUCH DEPENDS ON LAUSANNE. (British Official Wireless.) (Received 2.30 p.m.) RUGBY, May 25. Interest has been aroused on both sides of the Atlantic in a statement that an agreement will be framed within the next few days at Washington providing , for the repayment to the United States of the British war debt annuity, suspended during , the moratorium years intimated by President Hoover last June. Under the moratorium the normal debt arrangement would be resumed after July 1, the first contribution becoming due on December 15. The agreement regarding the suspended annuity in no sense of the word is a sequel to the moratorium arrangement, and merely stipulates the terms of reppayment. These provide for repayment on the basis of -1 per cent during a period of ten years, and thus add £3,000,000 annually to the normal debt payments due over that period. The principle of the arrangement is the same as that applied at the London Conference of last August, when» the situation regarding European interGovernmental debts was examined in the light of President HoovcrV moratorium. It was then decided that the European debts, suspended during the moratorium should include both principal and interest. The German Government at the time pointed out that its acceptance of that proposal must not be taken as implying any expression of opinion upon Germany's future capacity to pay. According to the Anglo-American debtfunding agreement the scale of British payments rises in 1933, the eleventh year of payment, from 101,100,000 dollars (£32,220,000 at par) as paid in the previous, annual instalments to 183,900,000 dollars (£36,780,000 at par). America Looks to Europe. "The Times" Washington correspondent says, discussing the major war debt: "What the American policy will eventually be depends upon Europe and upon the eense of realities with which Europe will deal with the questions of land disarmament and reparations. If Europe should fail, the prospect would be gloomy indeed, for there arc not forces enough in America to repair so disastrous a happening." "The Times" says that the present agreement does not in any way prejudice any suggestions or proposals about war debts which may possibly be made before the, next payment becomes due The request for a business-like definition of the terms of the moratorium does not warrant any inference as to the American attitude towards any such alterations, but until the Presidential election is over next November and the United State sreturns to normal political life there is no possibility of serious thought being given in America to comprehend the difficult problem of international debts. Meantime, the other Powers can only endeavour to put their own houses in order so far as is possible without American collaboration.