TRAGIC LOGIC.

Auckland Star, Volume LXIII, Issue 288, 5 December 1932, Page 7

TRAGIC LOGIC.

BRITISH ARGUMENT.

American Yiews May Alter -'--'i^ter\*:/Hxaiiunaiioh.

MESSAGE TD CONGRESS. (British Official Wireless.) (Received 12.30- p.m.) ; ■ V • RUGBY, December 4. •Washington, messages.: indicate a likelihood that-President Hoover will make the European debts question the subject of a special message to Congress next week.

Meanwhile, reports are reaching London to show that although the British Note created a deep impression on a large section of American opinion, including many of those most in touch with the world economic situation, the first reactions of several influential Congressmen show little or no departure from the attitude adopted by them during the recent electoral campaign.

It is hoped that when time has been allowed for a more.careful'study of the tragic logic with which the.British Note ♦races the history of the world' depression and the relation to it of the vast unnatural transfers involved in the system of international indebtedness, together with the effect xipon both creditor and debtor countries of its continuance, some recognition will be forthcoming of the real needs of the world situation.

For the time being, however, all messages from America give slight reasons to couple this hope with expectation. Apart from America, the British Note has been hailed in nearly.every country as both impressive and convincing. Mr. Baldwin's Hope. Mr.- Stanley Baldwin, speaking at Sunderland, said the British Note to America was a. statment absolutely accurate in facts and temperate in language. He added: "There, is no party question in this. It is the deliberate view.of every man in this country who is competent to form a judgment on the matters to which that Note refers. "I have no doubt that Americans will give most careful and, so far as the Government is concerned, most sympathetic consideration to the Note, because they stand as much as we do, if not more, to suffer from the continuance of thia particular form of payment. "What makes me so glad is.that following on the Lausanne Conference and on this Note we shall have an International, Economic- Conference as soon as it can be convened in'l933, at which I hope these questions will be studied and probed with knowledge and sympathy. ■ i'■ ■■ ./ ■ ■ .

"I hope tte result of that conference will be that to a great extent the whole world may be.relieved,of war debts payments, which, are. intolerable for the business of every nation, whether debtor or creditor." ' , . Mr. Baldwin said he hoped everyone would read the whole of the British war debts Note. ' '.'■<■ "You can mix it up with the Test match," he said. Britain, under her previous Government, said Mr. Baldwin, was third among, the world's exporting countries. She was now first.

British manufacturers should take advantage of the recent Ottawa Conference to familiarise themselves with the Dominions' requirements. He added: "I believe what I have never been able to eay before, that Britain's turn towards normality is coming." French Note Published.

The French Note, which has been published, ae anticipated emphasises the contention that.Mr.. Hoover's action in suggesting the Lausanne agreement placed a moral obligation on him to. extend the moratorium principle. The Note described the French and world economic situation as requiring a fundamental revision of the status of debts.

Admitting the powers of Congress the Note closed significantly with.an appeal for a favourable decision from "the President of the United States." Mr. Hoover's Cabinet was buey throughout the day discussing the situation. Sir Ronald Lindsay, the British Ambassador, called on the American Secretary of State, Mr: H. L. Stimson, but he received no statement other than an intimation that neither Note might be officially anewraed.

Meanwhile, it is persistently rumoured that several Senators, presumably leading Democrats, are formulating a longrange programme envisaging the settling of all the debts in a fixed cash. amount, tentatively mentioned at. 1,000,000,000 dollars, to be financed by an international loan, also to grant the United States trade concessions and to provide for substantial reductions in European armaments.

It ie understood that high Government officials are greatly ' concerned of the effect on world trade of further currency depreciations, and that they are studying this angle intensively.