IN DOUBT.

Auckland Star, Volume LXIV, Issue 136, 12 June 1933, Page 7

IN DOUBT.

DEBT INSTALMENT.

BRITAIN UNDECIDED.

Token Payment Mentioned of £2,000,000. FRANCE AGAIN TO DEFAULT. (United r.A. —Electric Telegraph—Copyright* LONDON, June 11. The Cabinet has agreed to send a communication to the President of the United' States,, Mr. Roosevelt, through the British Ambassador, Sir Konald Lindsay, stating-its views on the war debt issue, whichwere cabled to America on Friday night. , •>' It is believed that a conditional proposal was made which may involve nominal-or token payment pending a settlement of the whole problem. There is good reason for believing tl,iat Air. MaeDonald's recent visit to Washington was attended by si strong prospect of Mr. Roosevelt recommending a moratorium on the June payment, but it is obvious that Sir. Uoosevclt's course of action since then has been seriously affected by minor revolts in Congress. • The "Daily Mail" says it understands the. Cabinet' has decided to oiler America a token payment of £2,000,000 to cover the 'June and Decern lie r payment. It is hoped this will elicit a prompt indication of Mr. Iloosevelt's intentions. A British official wireless message says it is understood that, the war debt question which was consiucrcd by the Cabinet on Friday afternoon is still the subject of communications with Washington. It is presumed that consideration of the matter will be continued over the week-end, and it is anticipated that there will be a further meeting of tho Cabinet on Monday or Tuesday morning. A statement in regard to the payment of the next instalment of the debt is to be made in the House of Commons on Tuesday.

Britain and Italy to Pay? According to Washington advices, officials at White House intimated last night that no formal written proposal has been received from any foreign Government ill regard to war debt instalments, and that until they are received tho President "Will take 110 action and indicate no opinion. It is reported that partial payments from Britain and Italy appear to be likely. Jt is conjectured that during Sir Ronald Lindsay's visit to Mr. Roosevelt on Thursday a suggestion was made for i a part payment by Britain of an amount not to cxcccd 8,000,000 dollars. The Ambassador continued to confer with the State Department yesterday, as also did the Italian Ambassador. The latter indicated that while a final decision still had to be reached, a part payment was probable, and that Signor Mussolini was expected to discuss war debts in an address on .foreign affairs. Reports from Paris indicate that Franco will default again. In spite of determined pressure from White House that Congress should complete its legislative programme and adjourn according to schedule, in accordance with President Roosevelt's known desire to deal with the war debt crisis and the World Economic Conference without so-called legislative interference, tho special session will run into next week. Tho cause of the prolonged session was strong opposition from blocs who oppose certain features of the Industrial Recovery Bill and a limitation of expenditure on war veterans' allowances. This prevented the passage of these two important measures in the President's programme.