PAYMENT OF WAR DEBTS.

Press, Volume LXVIII, Issue 20733, 19 December 1932, Page 10

PAYMENT OF WAR DEBTS.

NEW ZEALAND AND ENGLAND. QUESTION OF OBLIGATION. (I'KXSsS ASSOCIATION TI.LESRAU.) WELLINGTON, December IS. Following on tho expiration of tho Hoover moratorium, tho Prime Minister, tho Kt. Hon. G. W. Forbes, and his colleagues at the week-end gave consideration to tho position as it affects the obligations of this Dominion to the United Kingdom. It will bo remembered that when the Hoover moratorium camo into effect his Majesty's Government in the United Kingdom, of its own volition, offered to extend tho moratorium to tho war debt of New Zealand to tho United Kingdom, an olfer which was gratefully accepted, especially as it gave wclcomo and much needed relief to the finances of the Dominion. The Hoover moratorium is now at an end, and last week tho Government in the United Kingdom was obliged to make a heavy paymet to tho United States on account of its funded war debt. The Government in England had previously signified its willingness to continuo the moratorium with respect to the obligations of this Dominion to the United Kingdom, but tho Government in New Zealand now considers that it should not accept without question this most generous offer. It is convinced that the people of New Zealand would not wish to strain tho generosity, always so freely extended, of tho people of tho Uniteu Kingdom, who arc facing difficulties perhaps oven greater than those confronting this Dominion. It has accordingly felt it advisable to inform the Government in England that il : the United Kingdom's offer to continuo tho postponement of payments duo by New Zealand was made on the assumption that its own payments due to the United Stutes could also be postponed, then New Zealand would feel bound to rcatsumo liability. Message to Britain. The Governor-General has accordingly been requested to convey tho following message to tho Secretary ot Stnto for tho Dominions:—"His Majesty's Government in New Zealand desires* to recall the fact that his Majesty's Government in the United Kingdom lately agreed to extend the operations of the Hoover moratorium with a view of granting financial relief to this Dominion, and tho New Zealand Government gladly accepted this generous concession. His Majosty's Government in New Zealand is not aware how far his Majesty's Government in the United Kingdom granted this concession in reliance on an anticipated .similar concession by the United States of America to tho United Kingdom, and it would be grateful to be informed whether Iho British Government would, in the circumstances as they now ex' t. desire to roview tho position and restoro the status quo ante, so that this Dominion should rcassume the liability for paymont as if tho moratorium had not been extended. If the concession to this Dominion was granted on the assumption of a continued moratorium by the United States of America, then his Majesty's Government in New Zealand would feel in honour bound to rcassume liability."

Tho statement adds that it is felt that the action of the Government will meet with tho wholehearted approval of people of this Dominion, notwithstanding tho difficulties confronting them.