REPLY TO BRITISH NOTE.

Press, Volume LXVIII, Issue 20715, 28 November 1932, Page 9

REPLY TO BRITISH NOTE.

OFFICIAL AMERICAN STATEMENT. NO AUTHORITY TO GRANT AN EXTENSION. OFI'ICIAIi 'WIRELESS.) RUGBY', November 25. The Unitod States' reply to tho British Note on war debts is still under consideration. The reply of tho United States Hecrotary of Btate (Mr H. L. Stimson) to the British Note is as follows: — "Your present suggestion for a general roview goes far beyond aiiytutng contemplated or proposed at any time in the past, either by President Hoover or tins Government, and oven the suggestion quoted in your .Note was not adopted oy the Congress of tho United States. "lu view of these facts, and in tho light of the historic position of the United h'-tatcs that reparations are solely a European question, in which the United States is not involved, I am sure no inference can bo intended that the settlement of German reparations at Lausanne was mado in reliance upon any commitments given by this Government. Realisation of the Poeition. '' I appreciate the importance of tliO step taK.cn by the Governments at Lausanne in respect of reparations, and its possible effect upon those creditor nations of the loss of that source of income. I am not oblivious to the fact that the world-wide depression and the concurrent fall in prices have increased tho weight of debts in many parts of the ivorid, nor to the tact that tho decrease in international trade has increased the difficulties of obtaining foreign exchange. I also recognise tho relation which these facts may bear to tho process ot' recovery. "On the other hand, it must be remembered that these incidents of the dopression liavc ulso t'ullcn "ftith gitn. weight upon the American people, and the effects upon them, directly as taxpavers or otherwise, of any modification of the agreement with respect to the debts due to this country cannot bo disregarded. "I confess I cannot sec any presentation in vour Note which would bo lively to induce Congress to act upon the question any differently now from the principles upon which it has acted an the past. Investigation Suggested. "The attitude of the President, therefore, is that for any suggested study ot inter-Governmental financial obligations as now existing, some such agenc} as the President has referred to should be created to consider this question individually with each Government, as heretofore. The President is prepared L recommend to Congress that it conistitutc an agency to examine the -whole SU "'as to the suspension of tho instalment of the British debt due on December 15th, which ia oue ot the objectives of your Note, no authority lies within the executivo to grant such extension, and no facts have been placed iri our possession which could be presented to Congress for its favourable consideration. "Such importance is attached by our Government and people to the maintenance of the original agreements m full, by payment on December loth, as to far" outweigh any reasons now apparent for its suspension; mid by such payments the promts of a satisfactory approach to the whole question, my opinion, would be greatly increased."

PRIME MINISTER'S VIEW

BRITAIN'S RATIONAL ATTITUDE.

LONDON", November 20. Mr llumsay Mao Donald (Prime Minister), speaking at East Retford, said. "After Lausanne we approached America and asked her to join in studying the wholo question of war debts. A\e asked for no cancellation or rfcduotion, wo asked nothing but that the legju debt payment be postponed while views were exchanged. We behoved that suspension would be good business for all nations, including America. "We are discussing the situation rationally, and deprecate a passionate controversy on either side of the Atlantic. We believe that if a real effort is made together a solution can be found enabling the December 15th payment to bo passed until the position has been further examined."

A DELICATE SITUATION.

LONDON, November 25

The subject of the United States Noto was referred to at Birmingham this afternoon by Mr Neville Chamberlain (Chancellor of the Exchequer), who said the decision which must be taken was one of the most difficult and delicate which it had ever fallen to the lot of any Government to take, lor years the policy of the country with regard to both rcoarations and war debts had beon that* all should bo wiped out. They went to Lausanne, and there came to certain agreements that all reparation payments ' should be suspended. The Chancellor added: "Wd never contemplated a state or thiiu'S ill which we might be asked to make payments equivalent to another shilling in the pound on our iflcomd tax, while at the same time we We receiving nothing from our debtors. That alone,"from the point of view of justice and the possibility of maintaining our industries, would be absolutely insufferable." OTTAWA AND WAR DEBTS* LONDON, November 25. In the House of Commons, Mr J. Maxton (Labour, Bridgeton), in thd Address-in-Reply debate, said when Ministers talked of the dangers of war they never looked across tho Atlantic, and failed to realise that Ottawa wM a challenge to the world to the United States. He hoped the Government would recognise that Am*. Hca'S stiff-necked debt attitude was not unconnected with the Ottawa decisions. depreciated currency PAYMENT. WASHINGTON, November 20. President Hoover's suggestion that foreign Governments might be permitted to pay war debts'in depreciated otifrencv was opposed to-day by Senator w E 'Borah, chairman of tlio Senate Foreign Relations Committee, an "ft diluted form of moratorium."

OTHER NATIONS' DEBTS. LONDON, November "2u. Sir Walter Layton (the eminent economist), writing in the "News-Chron-icle," says France, in addition to paying America £4,000,000, must resume paying Great Britain £12,500,000. Italy must pay America £2o0,(J00, and Great Britain £4,000,000. The Dominions, principally Australia, must resume paying £B,DOO,OCO yearly. STERLING DECLINE. LONDON, November "o. Sterling on New York opened at and had declined by midday to 3.22. There was littlo selling, and the position appeared Well in lifltid. The franc fate was 82jj.