CABINET APPROVAL.

Auckland Star, Volume LXIII, Issue 286, 2 December 1932, Page 7

CABINET APPROVAL.

Decision on Payment to Be Taken Later. RUMOURED GOLD SHIPMENT. LONDON", December 1. The British Note to the United States oil the war debt has the unanimous approval of the Cabinet, but the "Daily Telegraph's" political writer states that divergence continues as to whether Britain shall pay the December instalment if the United States does not agree to a suspension. The matter remains to be decided after the American reply is received. Present indications are that the Ministers are almost equally divided on this issue. Nevertheless the view is held in wellinformed quarters that if America maintains her demand Britain will honour her obligations and that every payment undoubtedly will be made in gold bars. It is officialh' stated that the shipments of £3,000,000 worth of bar gold have no relation to the debt payment, but represent an exchange transaction affecting another country.

A Washington message states that in spite of assurances from authoritative sources that 1.5,000,000 dollars' worth of gold, which is being sent to New York by the Bank of England is oil account of the Continental and European Central Bank, the impression prevails in some quarters that the metal will be used either for the payment of the British war debt instalment or to support ster-

This was one of the reasons assigned for yesterday's sharp covering movement of the pound, with a resultant gain in price.