HIGHLY PRAISED.

Auckland Star, Volume LXIII, Issue 302, 21 December 1932, Page 7

HIGHLY PRAISED.

NEW ZEALAND OFFER.

British Reply to Dominion War Debt Resumption. TEXT INDICATED. (United r.A.-Electric Telegraph— Copyright) LONDON, December 20. It is understood that the Government will dispatch to-day its reply to New Zealand's offer to resume war debt payments. The reply is expected to indicate deep appreciation of the magnificent spirit of the offer, especially in view of New Zealand's Budgetary -problem, but it is likely to suggest that the question remain in abeyance pending negotiations with America. The position is that Britain neither asked nor expected the Dominions at present to resume payments, and is precisely the same as was stated earlier this month, when a Government spokesman announced that the Dominions would not have to resume payments to Britain as the result of Britain repaying America.

It is apparently necessary to reiterate this statement, owing to cabled suggestions that Australia is cpntemplating a resumption of payments.

The crux of the situation is Lausanne, which some Dominion opinion confuses with the Hoover moratorium, notably New Zealand's offer.

It was agreed at Lausanne that the Dominions would not be treated less generously than foreigners if the question of repayment arose. Britain is not desirous of disturbing the Lausanne agreements, owing to the repercussions in Europe and hopes for the earliest discussion with America, pending which the Lausanne agreements must continue.

Indications at Whitehall are that the Dominions are not to be called upon to resume debt payments to Britain while foreigners are exempt under the Lausanne agreements.

The "Morning Post," commending New Zealand's honourable debt gesture, remarks that there is no War debtor more deserving of relief and none readier to make every sacrifice rather than dishonour its bond.

"The Times" says it is an unselfish offer from the Dominion, -which is gallantly struggling through the depression. The same attitude is taken by the Australian Government, although it had abstained from a formal offer pending a review of the whole situation. The attitude of these Dominions is welcomed as another proof of their high courage and generous comradeship.